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TAIPA FAQ's

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1. What are the eligibility requirements through TAIPA?
   
   
2. Must proof be provided by the insured that he has been rejected by 2 companies?
   
   
3. Must we submit applications in duplicate?
   
   
4. What revisions of the application form are acceptable?
   
   
5. What limits are available through TAIPA?
   
   
6. When does coverage become effective?
   
   
7. What payment options are available?
   
   
8. What forms of payment are acceptable?
   
   
9. I have not received an assignment card. Is there any way for me to check and see if my application has been assigned?
   
   
10. I sent my agency check for the down payment. Now the applicant has stopped payment on his check. What can I do?
    
    
11. Must I be a certified producer in order to submit applications to the Association?
    
    
12. Should policy change requests be mailed to the Association office?
    
    
13. If the applicant requests changes or cancellation prior to the assignment being made to a company, should the producer hold the change or cancellation until the application has been assigned?
    
    
14. Must a request for reduction of coverage or cancellation be signed by the insured?
    
    
15. I have an assignment card showing that the company has had this assignment for 3 weeks. When can we expect the policy?
    
    
16. May I obtain a six-month policy through TAIPA?
    
    
17. Is an applicant with an international driver license eligible for a TAIPA policy?
    
    
18. How may I obtain a Texas SR-22?
    
    
19. If a Texas SR-22 is required, does the Association require separate checks for the filing fee and gross premium?
    
    
20. May an out-of-state SR-22 be requested on a TAIPA application?
    
    
21. How is a Named Non-Owner policy rated?
    
    
22. What is the additional charge for accidents?
    
    
23. Is a charge applied for all tickets?
    
    
24. PIP and UM/UIM were incorrectly rejected on the application. Can these coverages be added to become effective on the effective day of the policy?
    
    
25. Is the limited Mexico endorsement available?
    
    
26. My insured is required by the Department of Transportation to provide a $500,000 Combined Single Limit (CSL) policy. Can this be obtained?
    
    
27. My insured has received a mandatory "take-out" offer from his prior company. I am unable to provide a comparable offer. Am I able to resubmit him to the Association for assignment?
    
    
28. My insured is required to give 15 days notice of cancellation to the City of Houston. Is a company required to do this?
    
    
29. If the producer fails to complete item 9 of the application showing that the insured has existing coverage on the vehicle, or if he fails to enter the future effective date when utilizing ESP or EASi, may the producer request an amendment of the effective date, following assignment?
    
    
30. If my insured wishes to insure a second vehicle, which is not newly acquired, should I submit a new application?
    
    
31. My insured has a vehicle insured through the Association, written on a personal auto policy. He has now purchased a second personal vehicle. When will coverage become effective on this second vehicle?
    
    
32. My insured currently has a Non-Owner policy. He has now bought a car. What do I need to do?
    
    
33. My insured has a private passenger vehicle presently insured through the Association. He has now purchased a two-ton truck. Can this be added to the existing policy?
    
    
34. My insured has a vehicle on a Business Auto Policy presently insured through the Association. He now has purchased an additional vehicle. Can this be added to the existing policy?
    
    
35. I have a student who temporarily moved here from another state to go to school. My companies will not insure vehicles with out of state license plates. May I apply to the Association for coverage?
    
    
36. I sent a cancellation request to the company, requesting that the policy be canceled last month. Will they honor this request?
    
    
37. My insured has a business auto policy with a due date of 8-15-YY, on his renewal of 9-15-YY. If the company receives the renewal prior to 9-15-YY but after 8-15-YY is the company required to renew?
    
    
38. Are all companies licensed for automobile insurance subject to assignments through the Association?
    
    
39. My company received a commercial application from the Association. However, the producer did not give a complete description of use: therefore we cannot rate the policy. Can we return the application to the producer ?
    
    
40. We have received an application for coverage on an ambulance. Our company does not write coverage on these type vehicles. May we return this assignment, for reassignment to another company?
    
    
41. My company has received an assignment for a utility vehicle rated class 011990. However, this vehicle qualifies for the 3A classification. Since we are buy-out for personal autos may we return to the Association office for reassignment?
    
    
42. When will the producer receive commission?
    
    
43. If there is a rate change, when is the last day I can submit an application and get the old rates?
    
    

Questions & Answers

1. What are the eligibility requirements through TAIPA?
   
   The applicant must:
   
   1. Possess a valid driver license or request an SR-22 to obtain a valid license. If the applicant is applying for a driver's license, please indicate in Item 3 on the application and immediately notify the company when the license is obtained. A military driver's license is not acceptable.
      
   2. Be a resident of Texas or have a vehicle registered in Texas; and
      
   3. Certify that they have been rejected for insurance by two companies within the last 60 days. Refer to the item "Applicant" on the reverse side of the TAIPA application.
      
   An applicant in the military is eligible while stationed in Texas or if they are a Texas resident stationed in another state.
   A student who is a resident of Texas and attending school in another state is eligible. An out-of-state student attending a Texas school is eligible provided the vehicle is licensed (or is being licensed) in Texas.
   
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2. Must proof be provided by the insured that he has been rejected by 2 companies?
   
   No. The applicant's signed statement on the application is sufficient.
   
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3. Must we submit applications in duplicate?
   
   Yes. The company must receive an original application, including original signatures. The second copy may be a photo copy.
   
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4. What revisions of the application form are acceptable?
   
   Private passenger applications must be submitted on the 09/05 revision of the application.
   Public and commercial applications must be submitted on the 09/05 revision of the application.
   For your convenience, sample copies of the private passenger and commercial applications may be downloaded from the TAIPA Forms>Applications page.
   
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5. What limits are available through TAIPA?
   
   $20,000/40,000 Bodily Injury, $15,000 Property Damage.
   $2,500 Personal Injury Protection (Medical Payments are not available).
   $20,000/40,000/15,000 Uninsured/Underinsured Motorists
   
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6. When does coverage become effective?
   
   Applications bound through one of the Electronic Submission Procedures, ESP or EASi, are effective for losses at the date and time of the submission (unless a future effective date was requested) and the policy is effective at 12:01 AM the following day. The application must be mailed within one working day of the ESP telephone call or EASi submission. Applications not bound through ESP are effective the day following receipt by TAIPA.
   A future effective date may be requested in the item "Insurance Record" on the reverse side of the application.
   
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7. What payment options are available?
   
   Both Private Passenger and Public/Commercial assignments are eligible for:
   Full Annual Premium - no deposit.
   Advance Premium Payment - 25% down payment (subject to $40 minimum per vehicle), balance is due within 30 days of the date of the billing notice from the company; or
   Premium Finance Company - Signed Power of Attorney must accompany the application.
   8 Payment Installment Option - 20% down payment (subject to $40 minimum per vehicle), balance is paid in 8 installments to the company.
   
   
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8. What forms of payment are acceptable?
   
   Applicant's check, producer's check, money order, cashier's check, certified check or premium finance company check payable to TAIPA. We cannot accept a check from the applicant's parent or employer.
   When a producer's check is submitted with the application and the applicant's check to the producer is dishonored, we cannot require the company to cancel the coverage. Non-payment to the producer is not a provision for cancellation in the policy.
   TAIPA will not accept agency or premium finance company checks if we have received one or more NSF checks within a 12 month period.
   
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9. I have not received an assignment card. Is there any way for me to check and see if my application has been assigned?
   
   If you have a Texas driver's license number, the easiest way to check on the assignment status of an application is to call the TAIPA Voice Response System at (800) 580-TAIP (8247). This is a free call: the Voice Response System is available at all times. You must have a touch-tone phone to use this service.
   If you do not have a Texas driver's license number, or a touch-tone phone, you may call the Association during normal business hours at (512) 444-4441, or email custsvc@taipa.org. Please have as much information as you can available when you call or email.
   
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10. I sent my agency check for the down payment. Now the applicant has stopped payment on his check. What can I do?
    
    You can contact the company and see if they will cancel. However, since they received the premium they have no basis for cancellation under the provisions of the policy.
    In the future we suggest that when you accept an applicant's check, you have them make it payable to TAIPA. The company then may rescind if the downpayment is NSF or has a stop pay placed against it.
    If the applicant makes the check payable to the agency, you may endorse to TAIPA.
    
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11. Must I be a certified producer in order to submit applications to the Association?
    
    If you are not a certified producer you may still submit applications; however, you will not receive commissions on those applications. Contact the Association office for more information and for the necessary certification forms. There are no fees involved.
    More questions about the Producer Certification Program (PCP) are addressed on the Producer Certification Program Frequently Asked Questions page.
    
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12. Should policy change requests be mailed to the Association office?
    
    Not unless the original application has not been assigned. If the original application has not been assigned, mail your request to the Association office in order to obtain the earlier effective date for change or cancellation. Once the application has been assigned, the Association office will mail the request to the company along with the original envelope. Mailing policy change requests on existing assignments to the Association office will delay the processing of the endorsement or cancellation.
    
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13. If the applicant requests changes or cancellation prior to the assignment being made to a company, should the producer hold the change or cancellation until the application has been assigned?
    
    No. If there is no automatic coverage provision in the policy covering the change, or if the request is for cancellation, the producer should mail the request to the Association office. A note should be attached to the request advising that the change is to an application recently submitted. Once the assignment is complete the Association will forward to the assigned company with the original envelope.
    
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14. Must a request for reduction of coverage or cancellation be signed by the insured?
    
    Yes. The only exception is if the premium is premium financed and there is a power of attorney on file. The premium finance company may then request cancellation.
    
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15. I have an assignment card showing that the company has had this assignment for 3 weeks. When can we expect the policy?
    
    The company has 30 calendar days from date of receipt in their office to issue the policy. (Allow 5 days for mailing). The assignment card becomes null and void after 60 days. If you have not received the policy within the above timeframe, and if the application provided all necessary information to issue the policy, contact the Association office in writing for assistance.
    
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16. May I obtain a six-month policy through TAIPA?
    
    No. Only annual policies are available.
    
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17. Is an applicant with an international driver's license eligible for a TAIPA policy?
    
    Yes, an international driver's license is valid. The applicant must also be a resident of Texas and been denied insurance by two companies within the past 60 days.
    
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18. How may I obtain a Texas SR-22?
    
    A Texas SR-22 may be issued by TAIPA on behalf of the assigned company. The Texas SR-22 should be requested in the item "Filings" on the application. The Texas SR-22 is processed as follows:
    
    1. When the applicant's driver license is suspended by the Texas Department of Public Safety (TDPS) and a separate check payable to TDPS for the reinstatement fee accompanies the application, TAIPA will modem the Texas SR-22 to the TDPS the following work day; or
    2. When the applicant's driver license is not suspended, include a note on the application "no fees required-send to TDPS". TAIPA will modem the Texas SR-22 to the TDPS the following work day; or
    3. The Texas SR-22 will be mailed to the producer when neither of the above are followed; or
    4. If the application and premium remittance (no cash, please) are hand-delivered to the TAIPA office, the Texas SR-22 will be immediately issued. We recommend allowing an hour for processing at TAIPA and driving to TDPS.
    
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19. If a Texas SR-22 is required, does the Association require separate checks for the filing fee and gross premium?
    
    Yes, if you wish the Association to file the SR-22 directly with the Texas Department of Public Safety.
    
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20. May an out-of-state SR-22 be requested on a TAIPA application?
    
    Yes. The application will be assigned to an company writing in that state. The company is required to issue the out-of-state SR-22 within two working days after receipt of the application. The company may either file the SR-22 directly with that state, mail it to the producer, or mail it to the insured.
    
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21. How is a Named Non-Owner policy rated?
    
    Refer to Rule 45 in the automobile manual and complete Item 5, "Non-Owner Policy" on the private passenger application. Coverage is provided for any vehicle the applicant or spouse do not own. The classifications N2 through N6 are a percentage of the class 3 rate. If the insured is excluded from the household policy or the owner of the vehicle has no insurance on the auto, rate as if the non-owner operator owned the automobile.
    
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22. What is the charge for accidents?
    
    A 20% premium charge applies to each accident as owner or operator. If the accident meets one of the five exceptions in the item "Accidents" on the reverse side of the application, list the exception and no charge applies. The maximum charge is 100%. The charge (or charges) is (or are) applied to Bodily Injury, Property Damage and Personal Injury Protection, and apply to the highest rated vehicle.
    Additional questions about additional charges are covered in the Frequently Asked Questions about Rule 9.
    
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23. Is a premium charge applied for all tickets?
    
    A premium charge is applied for all tickets, provided the ticket is not one of the four exceptions listed in Rule 9. The maximum charge is 100%. The charge(s) is applied to Bodily Injury, Property Damage and Personal Injury Protection and apply to the highest rated vehicle.
    Additional questions about charges are covered in the Rule 9 Frequently Asked Questions.
    
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24. PIP and UM/UIM were incorrectly rejected on the application. Can these coverages be added to become effective on the effective day of the policy?
    
    The coverages may be added and are effective at 12:01 AM on the date following the date of the written request, provided the request is mailed within one working day of completion of the request. If the request is not dated, or not mailed within one working day, coverage becomes effective at 12:01 AM on the day following the date the written request is received by the company.
    
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25. Is the limited Mexico endorsement available?
    
    It is no longer available as of 03/01/2006. Click here to view the changes effective March 1st 2006.
    
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26. My insured is required by the Department of Transportation to provide a $500,000 Combined Single Limit (CSL) policy. Can this be obtained?
    
    No, only minimum financial responsibility limits are available. Assignments needing E-2 Filings are no longer eligible through the Association effective 12-1-2004. For more information, you may contact the Department of Transportation at 1-800-299-1700.
    
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27. My insured has received a mandatory "take-out" offer from his prior company. I am unable to provide a comparable offer. Am I able to resubmit him to the Association for assignment?
    
    No. One of the eligibility requirements for the Association is that the insured has been refused by two companies. The "take-out" offer is considered an offer from a company.
    
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28. My insured is required to give 15 days notice of cancellation to the City of Houston. Is a company required to do this?
    
    Yes. The company will file the necessary filing with the City of Houston, and attach endorsement TE 0202A to the policy, since it is required by city ordinance.
    
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29. If the producer fails to complete item 9 of the application showing that the insured has existing coverage on the vehicle, or if he fails to enter the future effective date when utilizing ESP or EASi, may the producer request an amendment of the effective date, following assignment?
    
    On a Personal Auto policy the effective date may not be amended because of the "Automatic Termination" provision in the policy. Notify the prior company of the replacement coverage and request that they cancel on the effective date of the new assignment.
    
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30. If my insured wishes to insure a second vehicle, which is not newly acquired, should I submit a new application?
    
    No. Submit a policy change request to the company. Coverage will become effective at 12:01 am on the day following the written request, provided the request is mailed to the company within one working day following the date of completion. If the request is not dated, coverage will become effective at 12:01 am on the date following the date received by the company.
    If a new application is submitted, and if there are additional charges under rule 9, both policies will be charged. If the new application is submitted on a business auto policy, the insured may also void the automatic coverage provision of the policy.
    
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31. My insured has a vehicle insured through the Association, written on a personal auto policy. He has now purchased a second personal vehicle. When will coverage become effective on this second vehicle?
    
    Since the existing policy is a personal auto policy and the vehicle is newly acquired, there will be automatic coverage under the policy conditions, provided that the company is notified within 30 days of acquisition.
    
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32. My insured has a vehicle on a Business Auto Policy presently insured through the Association. He now has purchased an additional vehicle. Can this be added to the existing policy?
    
    If you acquire an auto during the policy period, there will be automatic coverage only if the assigned company provides coverage on all autos that the insured owns, or if it replaces a previously owned auto for that coverage; and you tell the company within 30 days after you acquire it that you want this coverage.
    
    If an insured has other vehicles insured through another company the automatic coverage part of the policy is not applicable, unless it is a newly acquired auto replacing coverage on an auto that is on that policy for that coverage. Coverage for newly acquired autos in these cases will be in accordance with the TAIPA Plan of Operation.
    
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33. My insured currently has a Non-Owner policy. He has now bought a car. What do I need to do?
    
    The company must be notified within 30 days of acquisition for automatic coverage under policy conditions.
    
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34. My insured has a private passenger vehicle presently insured through the Association. He has now purchased a two-ton truck. Can this be added to the existing policy?
    
    Contact either the Association or the company to see if the company has a commercial quota. If so they will issue on a short term Business Automobile policy. If they do not have a commercial quota, apply to the Association on new application.
    
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35. I have a student who temporarily moved here from another state to go to school. My companies will not insure vehicles with out of state license plates. May I apply to the Association for coverage?
    
    Yes, provided that the insured is applying for Texas license plates within 15 days.
    
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36. I sent a cancellation request to the company, requesting that the policy be canceled last month. Will they honor this request?
    
    No. The company is not required to backdate a cancellation, unless it is written on a personal automobile policy, on the same covered vehicle: then the "Automatic Termination" provision would apply.
    
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37. My insured has a business auto policy with a due date of 8-15-YY, on his renewal of 9-15-YY. If the company receives the renewal prior to 9-15-YY but after 8-15-YY is the company required to renew?
    
    Not if there is a certified filing on the business auto policy. If there is not a certified filing on the policy the company must renew, provided the premium is received on or before the inception date of the renewal.
    
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38. Are all companies licensed for automobile insurance subject to assignments through the Association?
    
    All companies, except county mutual companies, are required to be members of the Association. A members assignments are subject to their voluntary market writings. Section 16 of the Plan of Operations provides more detailed information.
    
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39. My company received a commercial application from the Association. However, the producer did not give a complete description of use: therefore we cannot rate the policy. Can we return the application to the producer?
    
    If, within the first sixty days of the policy, the pertinent underwriting information has been requested twice (in writing) from the insured, and this information is not received, the assignment may be canceled by giving required notice.
    
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40. We have received an application for coverage on an ambulance. Our company does not write coverage on these type vehicles. May we return this assignment, for reassignment to another company?
    
    Only if your company does not have a commercial quota. If you do have a commercial quota you must issue the policy.
    
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41. My company has received an assignment for a utility vehicle rated class 011990. However, this vehicle qualifies for the 3A classification. Since we are buy-out for personal autos may we return the application to the Association office for reassignment?
    
    Yes, provided that you return the assignment on a timely basis.
    
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42. When will the producer receive commission?
    
    The company must reimburse commission within 40 days of receipt of the gross premium. If the 8 payment plan is used, within 40 days of receipt of the gross down payment.
    
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43. If there is a rate change, when is the last day I can submit an application and get the old rates?
    
    Mailed applications must be received at least 2 days prior to the effective date of the new rates, as coverage is effective at 12:01 a.m. on the date following date of receipt in the Association office.
    If using the ESP or EASi system, the submission must be made at least 2 days prior to the effective date of the new rates, since the policy is effective at 12:01 a.m. on the date following the date of the submission.
    
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