A Follow-up Audit Report on the Financial Responsibility Verification
Program (TexasSure) at the Department of Insurance
Report Number 13-002
The Department of Insurance (Department) has fully or substantially
implemented 5 (63 percent) of 8 recommendations that auditors issued to the
Department in An Audit Report on the Financial Responsibility Verification
Program (TexasSure) (State Auditor's Office Report No. 10-016, November 2009).
The 2009 audit report cited weaknesses related to the Department's collection of
information regarding insurance policies for commercial vehicles and security
over motorist information.
Since the 2009 audit, the Department developed written policies and
procedures for monitoring TexasSure, including (1) a procedure for reviewing
quarterly Texas Insurance Checking Office reports to help ensure that vehicle
insurance information in TexasSure is complete and (2) change management
procedures to help ensure that only authorized changes are made to the TexasSure
system. In conjunction with HDI Solutions, Inc. (HDI), the contractor supporting
the TexasSure system, the Department also developed a formal process for
granting and revoking user access to TexasSure, and it has considered other
opportunities to enhance TexasSure.
The Department's efforts to establish a schedule for insurance companies to
submit information regarding all commercial vehicle insurance policies to
TexasSure remain incomplete. Insurance companies voluntarily submitted
information regarding approximately 120,000 commercial vehicle insurance
policies to TexasSure in May 2012 (0.61 percent of all registered vehicles in
TexasSure as of May 2012). That represented a slight increase when compared to
the approximately 101,400 commercial vehicle insurance policies voluntarily
submitted to TexasSure in October 2009 (0.56 percent of all registered vehicles
in TexasSure as of October 2009).
The Department also should (1) log instances in which it receives erroneous
or inconsistent information and (2) retain logs that document the weekly process
for updating TexasSure. The Department has not yet had an opportunity to
implement the process it developed for reviewing and approving modifications to
its contract with HDI within 60 days.
Auditors communicated other, less significant issues related to the operation
of TexasSure to the Department's management separately in writing.
Acrobat version of this report. (.pdf)