1. (a) Liability insurance information filed with the department is in force until such time as doubt is raised as to the validity of the coverage. Verification of coverage will then be sought by the department from the insurer and the party, and the case is subject to reevaluation for suspension. If an insurer denies the validity of a party's insurance coverage and the party contests the denial by bringing a civil suit against the purported insurer, proper insurance coverage is presumed pending the final disposition of the suit.
2. (b) Proof of financial responsibility, form SR-22, is no longer necessary when security is deposited or an affidavit is filed of no suits or civil judgments two years following the accident; when a release is filed or when the security on deposit pays off a judgment. Proof of financial responsibility, form SR-22, is not required with the filing of a release, installment agreement, or a judgment of non-liability under the security provisions of the Act.
3. (c) Form SR-22 is used to establish proof of financial responsibility by means of an insurance certificate. Form SR-26 is used to cancel a previously filed SR-22 insurance certificate. Form SR-30 will be used for the purpose of suspending a party for failure to maintain proof of financial responsibility by means of an insurance certificate, Form SR-22.
4. (d) "Proof of financial responsibility" in the form of an insurance certificate issued by a liability insurance company shall be filed on form SR-22 prescribed by the department. The names of all the parties covered and all the motor vehicles insured must appear on the form.
5. (e) A second filing of form SR-22, proof of financial responsibility by an insurance certificate filed by the same insurer cancels any prior filing. If additional motor vehicles are included in the later filing, all vehicles must be listed and explicitly described on the form. The name of each person insured must be on the insurance certificate.
6. (f) The date "proof was required" in an accident is the date of the accident. In a conviction case, proof is required for 2 years from the date of conviction; in a judgment case, proof is required for 2 years from the date the judgment is rendered or entered.
7. (g) A certificate of financial responsibility is issued under Texas Transportation Code, §601.051, where a party has a §601.121, real estate bond or a §601.122, cash or security bond. These bonds must be renewed each year (where proof is not required). Parties with a real estate bond or depositing cash or securities as proof of financial responsibility shall be limited to vehicles solely owned by a natural person. Firms, co-partnerships, associations or corporations do not qualify.

Source Note:The provisions of this §25.4 adopted to be effective January 1, 1976; amended to be effective July 5, 1984, 9 TexReg 3542; amended to be effective October 24, 1996, 21 TexReg 10219; amended to be effective May 9, 1999, 24 TexReg 3538.