TDI Wants Your Ideas & $9M WC Fraud Sentencing | TX Insurance Changes Mar 2026

Edition 2026-W11 | Your weekly rundown on what's changing at TDI and what it means for your practice

Source: TDI News | Published: March 9, 2026

TDI put out a public call for ideas on improving home and auto insurance for Texans — things like coverage clarity, affordability, and how well current consumer protections are working. A parallel Spanish-language release signals they're casting wide. This isn't a formal rulemaking comment period, but regulators use this kind of input to identify where rules need updating — and the people closest to daily friction are agents.

What to do: If you have a recurring problem — confusing disclosure requirements, coverage gaps you're constantly explaining, claims processes that don't serve your clients — now is the time to put it on the record. Use the English or Spanish submission page, whichever you prefer.

Submit your input (English) | Envíe sus ideas (español)

Source: TDI/DWC Enforcement | Original release

Frances Hall, former co-owner of Bill Hall Jr. Trucking in San Antonio, was sentenced for her role in a scheme that evaded $9 million in workers' comp premiums. The method was straightforward: systematically underreport payroll and conceal payroll reports to keep WC costs down. DWC pursued the case through sentencing; Hall received 10 years' deferred adjudication and was ordered to pay restitution — one of the largest workers' comp premium-evasion cases DWC has pursued in recent years.

For agents writing commercial WC on large-payroll accounts: clean reporting isn't just your client's problem. When a policy goes to audit and the numbers don't match, you'll be in that conversation. Make sure your commercial WC clients understand that payroll misreporting isn't a gray area.

NAIC AI Model Bulletin: now in 24 states. Nearly half of US jurisdictions require carriers to maintain a formal written program governing how they use AI — covering underwriting algorithms, claims automation, pricing models, and chatbots. Wisconsin and Rhode Island joined in March 2025. The NAIC is also piloting an AI Systems Evaluation Tool that some regulators will begin using in 2026 in selected market conduct and financial exams. If you write business across state lines, your carriers are almost certainly already subject to this in at least some markets. Worth knowing when a carrier cites an "AI-assisted decision" on a claim or declination — there's a governance framework they're supposed to be following. (Source)

How to read a regulatory bulletin without your eyes glazing over. Bulletins follow a predictable structure — once you know it, you can get through one quickly. Jump straight to: Authority (how enforceable is this, and under what statute?), Applicability (does this cover your lines?), and Action Required / Effective Date (what actually changes and when?). Everything in between is legal background; skim it. One catch: if a bulletin says "guidance" rather than "rule," it's technically non-binding — but treat it like a rule anyway. Examiners will. (NAIC Model Laws)

TDI Bulletin Archive — full index of TDI bulletins by year and line of business. If a client ever asks whether something "came from TDI," this is where you verify. (tdi.texas.gov/bulletins)

TDI Licensee Search — verify a license or look up an agent/adjuster before a referral (with links out to CE transcript tools). (tdi.texas.gov/agent/agent-lookup.html)

TX Insurance Regulatory Watch is published weekly. This newsletter is for informational purposes only and does not constitute legal advice. Always verify regulatory requirements directly with TDI or qualified counsel before taking compliance action.

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