Which of the following statements regarding insurance in Texas is true?
A) There is no state regulation of the insurance industry in Texas.
B) Frequent natural disasters contribute to the high insurance rates in Texas.
C) Texas is one of the few states in the union requiring homeowners to buy insurance.
D) Insurance rates in Texas have been the highest in the country for the past two decades.
E) The "file and use" system for insurance has been outlawed in Texas.

Question

Quizplus · Accepted Answer

Texas is prone to frequent natural disasters such as hurricanes and tornadoes, which contribute to the high insurance rates in the state. Option A is incorrect as there is state regulation of the insurance industry in Texas. Option C is also incorrect as homeowners insurance is not mandatory in Texas. Option D is incorrect as insurance rates vary by location and type of insurance, and Texas is not consistently the highest in the country. Option E is incorrect as the "file and use" system is still allowed for certain types of insurance in Texas.

Which of the Following Statements Regarding Insurance in Texas Is