Texas Property & Casualty: Texas Statutes — P&C Specific

Correct

The answer is A: After a 7-day waiting period; retroactive to day 1 if disability lasts 2 weeks or more

Under Texas Labor Code §408.082, no income benefits are paid for the first week of disability; TIBs begin to accrue on the eighth day. If the disability lasts two weeks or longer, benefits are computed from the first day of disability. TIBs are generally 70% of the difference between the employee's average weekly wage and post-injury earnings, up to the state maximum.

Source: §408.082

Correct

The answer is D: Catastrophe Reserve Trust Fund (CRTF)

TWIA's Catastrophe Reserve Trust Fund (CRTF) builds up money to pay future catastrophe losses. Each year TWIA's net gain from operations goes to the trust fund, to reinsurance or to other risk financing, and the Comptroller holds the fund on TWIA's behalf (Insurance Code §2210.452). For catastrophe years after 2025 (H.B. 3689), losses beyond TWIA's premium and other revenue are paid first from its reserves and the CRTF, then from up to $1 billion in state financing arrangements, and then from member assessments.

Source: Insurance Code §2210.452

Correct

The answer is B: Applicants must have been unable to obtain voluntary coverage

TAIPA eligibility requires that the applicant demonstrate inability to obtain auto insurance in the voluntary market. While TAIPA is commonly associated with high-risk drivers, applicants with clean driving records may also qualify if they have been denied coverage by standard carriers due to factors such as location, vehicle type, or other underwriting reasons. The applicant and the agent must certify that at least two insurers writing auto insurance in Texas have rejected the applicant (§2151.102(b)).

Source: Insurance Code §2151.102(b)

Correct

The answer is D: A WPI-8 Certificate of Compliance from TDI

Properties in TWIA-designated areas must comply with the TDI windstorm building code. Compliance is verified through the Windstorm Inspection Program, and a WPI-8 certificate (Certificate of Compliance) is issued upon passing inspection. Without a certificate of compliance (a WPI-8, or a WPI-8E when an engineer evaluates completed work), TWIA generally cannot cover the property (§2210.258), even if it meets general municipal building codes.

Source: Insurance Code §2210.258

Correct

The answer is C: A windstorm certificate of compliance

A reroof is an alteration that TWIA requires to be certified. The roofer or owner notifies TDI on Form WPI-1 before the work starts, and TDI issues a WPI-8 certificate of compliance once the inspected work passes; if the roof is already on, a Texas-licensed engineer can evaluate it and TDI issues a WPI-8E. The same two certificates cover new construction and alterations alike, so there is no separate renovation form. Without a certificate, TWIA generally may not insure the reroofed structure (§2210.258).

Source: Insurance Code §2210.258