The program was created last year with the passage of Senate Bill 1232. The Texas Forest Service, which championed the bill, was chosen to administer the program because of its long-standing relationship with volunteer fire departments, Stanford said. It was the Texas Forest Service that first determined that the high cost of liability insurance was a concern of rural volunteer fire departments across the state. And some weren't paying a penny because they couldn't afford the coverage, Stanford said. To qualify for coverage, each vehicle must have current Texas license plates and inspection sticker.
All fees go toward claims payments or administrative costs.
And, because it is a risk pool, favorable claims experience could result in lower participation fees in the future, he said. The enabling legislation mandated the creation of a risk management and loss prevention program with the self-insurance program. It requires that participants keep vehicle maintenance and driver training records and have a driving policy in place, Stanford said.