Behind the scenes with TDI’s Enforcement Section

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The Texas Department of Insurance (TDI) works every day to protect Texas consumers. One way it does this is through its Enforcement Section, which makes sure insurance companies, agents, and adjusters follow state laws and treat people fairly.

You can learn more in TDI’s Texas Insurance Podcast.

What TDI’s Enforcement Section investigates

TDI looks into many kinds of insurance issues, including:

• Selling insurance without a license.
• Not paying claims on time.
• Delays or mistakes in handling claims.
• Steering drivers to specific auto repair shops, which is illegal in Texas.

Once an insurance company accepts responsibility for a claim, Texas law requires them to pay within a set timeline. If it misses that deadline, it must pay interest or penalties to the consumer.

How an investigation works

TDI’s Enforcement Section has 34 investigators and attorneys. They review complaints, look into possible violations, and take action when needed.

Here’s what happens when a case comes in:

1. Investigators gather the facts.
2. Attorneys review the information and decide if a violation happened.
3. TDI decides the next step, which could be a warning, a consent order, or a formal hearing.

What happens at a hearing

If a case goes to the State Office of Administrative Hearings, both sides get to tell their story and present their evidence and witnesses.

• Applicants for insurance licenses can explain why they should be approved.
• Licensed agents or companies accused of misconduct can respond to the complaint.

After the hearing, an administrative law judge recommends a penalty or solution to the Texas insurance commissioner, who makes the final decision.

Learn more

• TDI analysts work behind the scenes to stop insurance fraud
• Insurance fraud investigations recover millions for Texans
• Report insurance fraud online