Brief Description and History

The Texas Property and Casualty Insurance Guaranty Association (TPCIGA) was created by legislation enacted in 1971 by the 62nd Texas Legislature. TPCIGA was created to provide a mechanism for the payment of covered property and casualty claims; to avoid financial loss to claimants or policyholders because of the impairment of an insurer; to assist in the detection and prevention of insurer insolvencies; and to provide an association to assess the cost of that protection among insurers. The Association provided funds to the Texas Department of Insurance Liquidation Division for the payment of covered claims until January 1, 1992, when it became charged with the responsibility to handle claims directly.

TPCIGA is a nonprofit, unincorporated legal entity composed of all licensed property and casualty insurers who must be members of the Association as a condition of their authority to transact insurance in the state. The Association is exempt from federal income tax under Section 501(c)(6) of the Internal Revenue Code. The Association is also exempt from payment of all fees and taxes levied by the State of Texas or any of its subdivisions, except taxes levied on real and personal property.

TPCIGA operates under authority of the Texas Insurance Code. It is overseen by the Commissioner of Insurance of the State of Texas through the appointment of four public board members, and the confirmation of five insurance industry-elected board members. The nine-member Board of Directors is TPCIGA's policy-making body. TPCIGA’s primary purposes are to pay covered claims as defined in Chapter 462 of the Texas Insurance Code, to avoid excessive delays in payments of those obligations and to avoid financial loss to claimants and policyholders due to an insurer’s impairment.

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-- Vision --
To maintain our position as the premier guaranty association in the country by providing superior customer service.

-- Mission --
The mission of TPCIGA, as a partner in the insolvency process,
is to promptly and fairly pay covered claims, minimize financial
loss, and provide a full range of services to our customers.