Key Takeaways
- The Texas Department of Insurance (TDI) regulates all P&C insurance activities under the Texas Insurance Code
- The Commissioner of Insurance is appointed by the Governor with Senate confirmation for a 2-year term
- Texas uses a "file and use" rate system for most P&C lines, allowing rates to be used immediately upon filing
- TDI has authority over licensing, rate review, market conduct, and consumer protection
- Texas requires fingerprinting through IdentoGO for all insurance license applicants
Last updated: January 2026
Texas Department of Insurance (TDI)
Important: This study guide covers Texas state-specific Property & Casualty insurance content only. You should complete the national Property & Casualty exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The Texas Department of Insurance (TDI) is the state agency responsible for regulating the Property & Casualty insurance industry in Texas.
The Commissioner of Insurance
The Commissioner of Insurance is:
- Appointed by the Governor with Senate confirmation
- Serves a 2-year term
- Responsible for enforcing the Texas Insurance Code
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
Commissioner Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Review | File and use system for most P&C rates |
| Market Conduct | Examine insurer business practices |
| Enforcement | Investigate and prosecute violations |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt rules interpreting the Insurance Code |
Texas Rate Regulation
Texas uses different rate systems for different lines:
Rate Systems by Line
| Line of Insurance | Rate System |
|---|---|
| Personal Auto | File and use |
| Homeowners | File and use |
| Commercial Lines | File and use |
| Workers' Compensation | File and use with TDI review |
| Title Insurance | TDI sets rates (regulated) |
File and Use
Under Texas file and use:
- Rates can be used immediately upon filing
- TDI reviews rates after implementation
- Rates must not be excessive, inadequate, or unfairly discriminatory
- TDI can disapprove rates after review
Exam Tip: Texas uses file and use for most P&C lines, unlike California's prior approval system.
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Test Your Knowledge
How is the Texas Commissioner of Insurance selected?
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Test Your Knowledge
What rate system does Texas use for personal auto insurance?
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