The Texas State Board of Insurance regulates the state's insurance and fire prevention industries under the provisions of the Texas Insurance Code and other applicable statutes. The basic objectives of the code are to ensure the financial soundness of the insurance industry and to protect the insurance consumer. The board determines agency policy, sets rules, promulgates and approves rates in certain property/casualty lines of insurance, hears appeals of administrative rulings, and enforces statutory mandates. Five staff offices report directly to the board: the General Counsel, the Chief Clerk, Statistical and Rate Development, Statutory Implementation, and Information Services. The board appoints a commissioner of insurance, who is over all other activities of the agency with the exception of fire prevention functions. These are supervised by the state fire marshal, who is appointed by the board's chair and is responsible to the board.

The commissioner of insurance oversees four specialized units and four broad programs. Reporting to the commissioner are (1) Hearings, which conducts formal administrative hearings; (2) Conservation, which attempts to rehabilitate and conserve insurance entities with impaired financial conditions; (3) Liquidation, which operates under court order to liquidate insolvent companies; and (4) Internal Audit, which assists management with recommendations for improving the efficiency and effectiveness of agency resources. Associate commissioners, under the direction of the commissioner, oversee operations of the agency's four other major programs: the Regulated Lines and Licensing Program, the Financial Program, the Compliance Program, and the Administrative Services Program.