How must the FAIR Plan write policies?

How must the FAIR Plan write policies?

• A. Directly with policyholders by mail
• B. Through licensed TX agents
• C. Online only
• D. Through brokers only

Answer: (B)

Policies must be written through licensed Texas agents. The FAIR Plan does not issue policies directly to policyholders; instead, it relies on licensed producers to place coverage with the plan’s participating insurers. This channel ensures proper licensing, regulatory oversight, and the standard flow of information—agents gather underwriting details, explain options, handle premium collection, and bind the policy with a carrier that’s authorized to write the plan. The other options aren’t correct because direct mail, online-only issuance, or use of brokers exclusively do not reflect the TEXAS FAIR Plan’s established process of using licensed agents to write policies.

Policies must be written through licensed Texas agents. The FAIR Plan does not issue policies directly to policyholders; instead, it relies on licensed producers to place coverage with the plan’s participating insurers. This channel ensures proper licensing, regulatory oversight, and the standard flow of information—agents gather underwriting details, explain options, handle premium collection, and bind the policy with a carrier that’s authorized to write the plan. The other options aren’t correct because direct mail, online-only issuance, or use of brokers exclusively do not reflect the TEXAS FAIR Plan’s established process of using licensed agents to write policies.