reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter D. Risk Retention Groups › Section 2201.156. Examination of Financial Condition; Dissolution or Delinquency Proceedings

Sec. 2201.156.  EXAMINATION OF FINANCIAL CONDITION; DISSOLUTION OR DELINQUENCY PROCEEDINGS.  (a)  A risk retention group not chartered in this state must submit to an examination by the commissioner to determine the group's financial condition if the commissioner of insurance of the jurisdiction in which the group is chartered and authorized to engage in business has not initiated an examination on or before the 60th day after the date the commissioner of this state requests an examination.
(b)  The commissioner shall:
(1)  coordinate the examination under Subsection (a) to avoid unjustified repetition; and
(2)  conduct the examination in an expeditious manner under Sections 401.051, 401.052, 401.054-401.062, 401.103-401.106, 401.151, 401.152, 401.155, and 401.156 and Chapters 86 and 803 in accordance with the National Association of Insurance Commissioners Financial Condition Examiner's Handbook.
(c)  A risk retention group not chartered in this state that engages in business in this state must comply with an order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by the commissioner or by a commissioner of another jurisdiction if, after an examination under this section, there is a finding that the group is financially impaired.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter D. Risk Retention Groups › Section 2201.157. Applicability of State Laws Prohibiting Certain Acts or Practices

Sec. 2201.157.  APPLICABILITY OF STATE LAWS PROHIBITING CERTAIN ACTS OR PRACTICES.  (a)  A risk retention group not chartered in this state shall comply with the laws of this state relating to deceptive, false, or fraudulent acts or practices, including Chapters 541 and 543.
(b)  A risk retention group not chartered in this state and the group's agents and representatives shall comply with Chapter 542.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter D. Risk Retention Groups › Section 2201.158. Injunctive Relief

Sec. 2201.158.  INJUNCTIVE RELIEF.  (a)  A risk retention group not chartered in this state must comply with the terms of an injunction issued by a court of this state or any other state based on a finding that the group is in a hazardous financial condition or is financially impaired.
(b)  Injunctive relief must be issued by a court if the commissioner seeks to enjoin a risk retention group not chartered in this state from:
(1)  violating the law of this state prohibiting deceptive, false, or fraudulent acts or practices;
(2)  soliciting or selling insurance to a person who is not eligible for membership in the group; or
(3)  soliciting or selling insurance or operating when the group is in a hazardous financial condition or is financially impaired.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter E. Provisions Regulating General Operation › Section 2201.201. Scope of Authority

Sec. 2201.201.  SCOPE OF AUTHORITY.  A risk retention group may engage in the business of insurance in this state only:
(1)  as a risk retention group; and
(2)  to conduct the activities described in this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter E. Provisions Regulating General Operation › Section 2201.202. Plan of Operation

Sec. 2201.202.  PLAN OF OPERATION.  A plan of operation submitted to the commissioner under Section 2201.103 or 2201.152 must be in the form of an analysis that presents the expected activities and results of a risk retention group, including, at a minimum:
(1)  information sufficient to verify that the group's members are engaged in businesses or activities that are similar or related with respect to the liability to which those members are exposed by virtue of any related, similar, or common product, trade, business, operations, premises, or services;
(2)  for each state in which the group intends to operate, the coverages, deductibles, coverage limits, rates, and rating classification systems for each line of insurance the group intends to offer;
(3)  historical and expected loss experience of the proposed members and national experience of similar exposures to the extent that this experience is reasonably available;
(4)  pro forma financial statements and projections;
(5)  appropriate opinions, including a determination of minimum premium or participation levels required to begin operations and to prevent a hazardous financial condition, by:
(A)  a qualified, independent casualty actuary who is a member in good standing of the American Academy of Actuaries; or
(B)  an individual who the commissioner recognizes as having comparable training and experience;
(6)  identification of management, underwriting and claims procedures, marketing methods, managerial oversight methods, and investment policies; and
(7)  other matters prescribed by the insurance laws of the state in which the group is chartered.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter E. Provisions Regulating General Operation › Section 2201.203. Agent to Verify Authority

Sec. 2201.203.  AGENT TO VERIFY AUTHORITY.  Before placing business with a risk retention group, each agent shall secure from the appropriate insurance regulatory authority a certified copy of the certificate of authority verifying that the insurer is authorized in the insurer's domiciliary jurisdiction to write the liability insurance policy the agent proposes to procure from the insurer.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter E. Provisions Regulating General Operation › Section 2201.204. Applicability of Certain Requirements for Liability Insurers

Sec. 2201.204.  APPLICABILITY OF CERTAIN REQUIREMENTS FOR LIABILITY INSURERS.  A risk retention group authorized to engage in business in this state under Subchapter C or D must participate on the same basis as a liability insurer holding a certificate of authority to engage in the business of insurance in this state in:
(1)  the Texas Windstorm Insurance Association;
(2)  joint underwriting associations;
(3)  mandatory liability and assigned risk pools; and
(4)  residual market facilities.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter E. Provisions Regulating General Operation › Section 2201.205. Risk Retention Group Participation in Insolvency Guaranty Fund Prohibited

Sec. 2201.205.  RISK RETENTION GROUP PARTICIPATION IN INSOLVENCY GUARANTY FUND PROHIBITED.  A risk retention group may not be required or permitted to join or contribute financially to any insurance insolvency guaranty fund or similar mechanism in this state.  A risk retention group, and any of the group's insureds or claimants against an insured, may not receive any benefit from an insurance insolvency guaranty fund or similar mechanism in this state for a claim arising under an insurance policy issued by the group.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter E. Provisions Regulating General Operation › Section 2201.206. Required Notice

Sec. 2201.206.  REQUIRED NOTICE.  (a)  Any policy issued by a risk retention group must contain in 10-point type on the front page and on the declarations page the following notice:
NOTICE
This policy is issued by your risk retention group.  Your risk retention group may not be subject to all of the insurance laws and regulations of your state.  State insurance insolvency guaranty funds are not available for your risk retention group.
(b)  Each person, firm, partnership, or corporation licensed under Chapter 981, 4051, or 4056 shall inform each prospective insured on business to be placed with a risk retention group of the notice required by Subsection (a).
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter E. Provisions Regulating General Operation › Section 2201.207. Prohibited Activities

Sec. 2201.207.  PROHIBITED ACTIVITIES.  A risk retention group may not:
(1)  solicit or sell insurance to any person who is not eligible for membership in the group;
(2)  solicit or sell insurance or operate if the group is in a hazardous financial condition or is financially impaired; or
(3)  engage in business in this state if an insurer is directly or indirectly a member or owner of the group, unless all of the group members are insurers.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter E. Provisions Regulating General Operation › Section 2201.208. Injunctive Relief

Sec. 2201.208.  INJUNCTIVE RELIEF.  An order issued by a United States district court enjoining a risk retention group from soliciting or selling insurance or operating in any state, in all states, or in any territory or possession of the United States on a finding that the group is in a hazardous financial condition, is financially impaired, or is insolvent is enforceable in the courts of this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter E. Provisions Regulating General Operation › Section 2201.209. Penalties

Sec. 2201.209.  PENALTIES.  (a)  A risk retention group that is authorized to engage in business in this state under Subchapter C or D and that violates this chapter is subject to all sanctions and penalties applicable to an insurer that holds a certificate of authority under Chapters 822 and 861, including revocation of the authority to engage in business in this state.
(b)  A risk retention group not chartered in this state that violates this chapter is also subject to any fine or penalty applicable to a foreign admitted insurer generally, including revocation of the authority to engage in business in this state.
(c)  A risk retention group engaging in business in this state that is not authorized to engage in business under Subchapter C or D is considered an unauthorized insurer and is subject to Section 823.457, Subchapters A-P, Chapter 442, and Chapters 101, 441, 804, and 801, other than Section 801.056.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter F. Purchasing Groups › Section 2201.251. General Qualifications of Purchasing Group

Sec. 2201.251.  GENERAL QUALIFICATIONS OF PURCHASING GROUP.  (a)  A purchasing group must:
(1)  have as one of the group's purposes the purchase of liability insurance on a group basis;
(2)  be composed of members whose businesses or activities are similar or related with respect to the liability to which those members are exposed by virtue of any related, similar, or common product, trade, business, operations, premises, or services; and
(3)  purchase group liability insurance only for the group's members and only to cover the members' similar or related liability exposure as described in Subdivision (2).
(b)  A purchasing group may be domiciled in any state.
(c)  Notwithstanding any other provision of this code, a purchasing group composed primarily of employees of a political subdivision, including a county, municipality, or school district, may purchase first-party indemnity coverage, in addition to the liability coverage described in Subsection (a)(3), on a group basis for other risks to which members may be exposed provided that the aggregate coverage limit per group member for the risk does not exceed three percent of the per member coverage limit for liability coverage.
(d)  A purchasing group shall notify the commissioner of the group's intent to purchase coverage described by Subsection (c) not later than the 60th day before the date the policy that includes the coverage is initially issued.
(e)  Subsection (d) does not apply to a purchasing group described by Subsection (c) that was providing to its members coverage described by Subsection (c) on January 1, 2013, and has continued to provide that coverage without lapse.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 476 (S.B. 1125), Sec. 1, eff. September 1, 2013.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter F. Purchasing Groups › Section 2201.252. Determination of Location

Sec. 2201.252.  DETERMINATION OF LOCATION.  (a)  For purposes of this subchapter, a purchasing group is considered to be located in the state in which the highest aggregate premiums are in force on the date the group insurance policy is written or renewed.  The group's location is ascertained on each placement or renewal of insurance by the group with an insurer or risk retention group.
(b)  For purposes of this section, a group insurance policy is considered to be renewed annually.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter F. Purchasing Groups › Section 2201.253. Limitations on Authority

Sec. 2201.253.  LIMITATIONS ON AUTHORITY.  (a)  A purchasing group located in this state may not purchase liability insurance from a risk retention group that is not chartered in a state or from an insurer that does not hold a certificate of authority to engage in the business of insurance in this state unless the purchase is effected through a licensed agent acting under Chapter 981.
(b)  A purchasing group may not offer insurance policy coverage declared unlawful by the Texas Supreme Court.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter F. Purchasing Groups › Section 2201.254. Application of State Law

Sec. 2201.254.  APPLICATION OF STATE LAW.  (a)  A purchasing group meeting the criteria established under the Liability Risk Retention Act of 1986 (15 U.S.C. Section 3901 et seq.) is exempt from any law of this state that:
(1)  relates to the creation of groups for the purchase of insurance;
(2)  requires countersignatures;
(3)  prohibits group purchasing; or
(4)  discriminates against a purchasing group or the group's members.
(b)  An insurer is exempt from any law of this state that prohibits providing or offering to provide to a purchasing group or the group's members advantages based on the group's or members' loss and expense experience that are not afforded to other persons with respect to rates, policy forms, coverages, or other matters.
(c)  A purchasing group is subject to all other applicable laws of this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter F. Purchasing Groups › Section 2201.255. Notice to Commissioner; Filing Fee

Sec. 2201.255.  NOTICE TO COMMISSIONER; FILING FEE.  (a)  Before engaging in business in this state, a purchasing group must provide notice to the commissioner.  The notice must:
(1)  identify the state in which the group is domiciled;
(2)  specify the lines and classifications of liability insurance the group intends to purchase;
(3)  specify the method by which and the persons, if any, through whom insurance will be offered to group members whose risks are located in this state;
(4)  identify the insurer from which the group intends to purchase group insurance and the domicile of that insurer;
(5)  identify the group's principal place of business and, if ascertainable at the time of filing, the group's location; and
(6)  provide other information the commissioner requires to verify that the group qualifies as a purchasing group under Section 2201.251.
(b)  The commissioner by rule shall impose a filing fee in an amount not to exceed $100 for filing notice under this section.  Fees collected under this subsection shall be deposited to the credit of the Texas Department of Insurance operating account.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter F. Purchasing Groups › Section 2201.256. Registration Requirement; Fees

Sec. 2201.256.  REGISTRATION REQUIREMENT; FEES.  (a)  A purchasing group shall register with and designate the commissioner or other appropriate authority as the group's agent solely for the purpose of receiving service of legal documents or process unless the group:
(1)  was domiciled before April 1, 1986, in any state of the United States and is domiciled on and after October 27, 1986, in any state of the United States;
(2)  before October 27, 1986, purchased the group's insurance from an insurer authorized to engage in business in any state, and after October 27, 1986, purchased the group's insurance from an insurer authorized to engage in business in any state;
(3)  was a purchasing group under the requirements of the Product Liability Risk Retention Act of 1981 (15 U.S.C. Section 3901 et seq.) before October 27, 1986; and
(4)  does not purchase insurance that was not authorized for purposes of an exemption under that Act as effective before October 27, 1986.
(b)  The commissioner by rule may impose a fee in an amount not to exceed $50 for each document served on the commissioner and forwarded to the purchasing group.  Fees collected under this subsection shall be deposited to the credit of the Texas Department of Insurance operating account.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter F. Purchasing Groups › Section 2201.257. Payment of Premium Taxes

Sec. 2201.257.  PAYMENT OF PREMIUM TAXES.  (a)  Premiums paid for coverage of risks located in this state by a purchasing group or any group member are subject to taxation at the same rate and subject to the same interest, fines, and penalties for nonpayment that apply to premiums paid for similar coverage by other insureds.
(b)  Title 3 is used to compute applicable tax rates for a purchasing group or any group member that pays premiums for coverage of risks located in this state to:
(1)  an insurer holding a certificate of authority to engage in the business of insurance in this state; or
(2)  a risk retention group authorized to engage in business in this state.
(c)  To the extent that a purchasing group or group member pays premiums as described by Subsection (b), the insurer or risk retention group receiving those premiums shall remit the tax to the department.
(d)  Chapter 225 is used to compute applicable tax rates for a purchasing group or any group member that pays premiums for coverage of risks located in this state to an eligible surplus lines insurer.  If a purchasing group or member pays those premiums, the surplus lines agent shall report and remit the tax.  If the agent does not remit the tax, the purchasing group shall remit the tax.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter F. Purchasing Groups › Section 2201.258. Purchasing Group Participation in Insolvency Guaranty Fund Prohibited; Exception

Sec. 2201.258.  PURCHASING GROUP PARTICIPATION IN INSOLVENCY GUARANTY FUND PROHIBITED; EXCEPTION.  (a)  A claim against a purchasing group or a group member may not be paid from any insurance insolvency guaranty fund or similar mechanism in this state.
(b)  A purchasing group, a group member, or any claimant against the group or group member may not receive any benefit from an insurance insolvency guaranty fund or similar mechanism in this state for a claim arising under an insurance policy procured through the group unless the policy is underwritten by an insurer authorized to engage in business in this state that, at the time of the policy's issuance:
(1)  has capital and surplus of at least $25 million; or
(2)  is a member of a company group that has combined capital and surplus of at least $25 million.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2201 - Risk Retention Groups and Purchasing Groups › Subchapter F. Purchasing Groups › Section 2201.259. Required Notice

Sec. 2201.259.  REQUIRED NOTICE.  (a)  A purchasing group that obtains liability insurance from an insurer or a risk retention group shall provide notice to each group member that has a risk located in this state that the risk is not protected by an insurance insolvency guaranty fund in this state and that the insurer or risk retention group may not be subject to all the insurance laws and rules of this state.
(b)  Each person, firm, partnership, or corporation licensed under Chapter 981, 4051, or 4056 shall inform each prospective insured on business to be written through a purchasing group of the notice required by Subsection (a).
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter A. General Provisions › Section 2202.001. Definitions

Sec. 2202.001.  DEFINITIONS.  In this chapter:
(1)  "Insurer" means any insurance company, corporation, reciprocal or interinsurance exchange, mutual association, county mutual insurance company, Lloyd's plan, or other insurer authorized to engage in business in this state.  The term does not include an insurer that writes only life, health, or accident insurance, variable life insurance, or variable annuity contracts.
(2)  "Joint underwriting association" means a voluntary unincorporated association of insurers authorized to engage in business in this state that has been authorized by the association's member insurers to act on behalf of the member insurers in joint underwriting or in issuing syndicate insurance policies on a several, but not joint, basis.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter A. General Provisions › Section 2202.002. Inapplicability of Chapter

Sec. 2202.002.  INAPPLICABILITY OF CHAPTER.  This chapter does not apply to the transaction of life, health, or accident insurance business.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter A. General Provisions › Section 2202.003. Deposit of Fees

Sec. 2202.003.  DEPOSIT OF FEES.  Fees collected under this chapter shall be deposited to the credit of the Texas Department of Insurance operating account.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter A. General Provisions › Section 2202.004. Certain Appropriations From General Revenue Fund Prohibited

Sec. 2202.004.  CERTAIN APPROPRIATIONS FROM GENERAL REVENUE FUND PROHIBITED.  The legislature may not appropriate money from the general revenue fund to administer this chapter, other than fees collected under this chapter and deposited to the credit of the Texas Department of Insurance operating account.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter B. Authority to Act as Joint Underwriting Association › Section 2202.051. Certificate of Authority Required

Sec. 2202.051.  CERTIFICATE OF AUTHORITY REQUIRED.  An association of insurers may not act as a joint underwriting association in this state on behalf of the association's member insurers unless the association holds a certificate of authority issued under this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter B. Authority to Act as Joint Underwriting Association › Section 2202.052. Application for Certificate of Authority

Sec. 2202.052.  APPLICATION FOR CERTIFICATE OF AUTHORITY.  (a)  An association of insurers that applies for a certificate of authority under this chapter must file a written application on forms prescribed by the commissioner.
(b)  The application must include:
(1)  the names and addresses of the association's officers and directors;
(2)  a copy of the association's constitution, articles of agreement or association, bylaws, rules, powers of attorney, or other agreements governing the association's activities;
(3)  a list of the insurers authorized to engage in business in this state who are association members and the addresses of those insurers' principal administrative offices;
(4)  the name and address of a resident of this state who will act as the association's agent for receipt of notices or orders of the commissioner and for service of process; and
(5)  other information as required by the commissioner.
(c)  At least one officer of the association must swear to the application.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter B. Authority to Act as Joint Underwriting Association › Section 2202.053. Issuance of Certificate of Authority

Sec. 2202.053.  ISSUANCE OF CERTIFICATE OF AUTHORITY.  The commissioner shall issue a certificate of authority to a joint underwriting association that complies with the requirements of this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter B. Authority to Act as Joint Underwriting Association › Section 2202.054. Term of Certificate of Authority

Sec. 2202.054.  TERM OF CERTIFICATE OF AUTHORITY.  Unless renewed, a certificate of authority issued under this chapter expires on the third anniversary of the date the certificate is issued.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter B. Authority to Act as Joint Underwriting Association › Section 2202.055. Renewal of Certificate of Authority

Sec. 2202.055.  RENEWAL OF CERTIFICATE OF AUTHORITY.  (a)  An applicant for the renewal of a certificate of authority must file an application for renewal with the commissioner and pay the renewal fee on or before the date the certificate expires.
(b)  The applicant shall file a list of the names and addresses of the association's officers and directors and a list of the association's member insurers with the application for renewal.  At least one officer of the association must swear to the list.
(c)  A renewed certificate of authority expires on the third anniversary of the renewal date.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter B. Authority to Act as Joint Underwriting Association › Section 2202.056. Fee for Certificate of Authority

Sec. 2202.056.  FEE FOR CERTIFICATE OF AUTHORITY.  (a)  An applicant for the issuance or renewal of a certificate of authority must pay a nonrefundable fee in an amount set by the commissioner when the applicant files the application.
(b)  The fee may not exceed $200.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter B. Authority to Act as Joint Underwriting Association › Section 2202.057. Reciprocity

Sec. 2202.057.  RECIPROCITY.  The commissioner may waive any requirement for a certificate of authority for an applicant who holds a certificate of authority from another state if the other state has requirements for a certificate of authority that are substantially equivalent to the requirements of this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter C. Powers and Duties of Joint Underwriting › Section 2202.101. Authority to Act

Sec. 2202.101.  AUTHORITY TO ACT.  A joint underwriting association may:
(1)  act only on behalf of association members who are authorized to engage in business in this state; and
(2)  engage in only those activities the association is authorized to perform by the association members.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter C. Powers and Duties of Joint Underwriting › Section 2202.102. Notification of Certain Information Required

Sec. 2202.102.  NOTIFICATION OF CERTAIN INFORMATION REQUIRED.  An association holding a certificate of authority under this chapter shall notify the commissioner of a change in the information required to be filed under Section 2202.052 not later than the 30th day after the date the change takes effect.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter C. Powers and Duties of Joint Underwriting › Section 2202.103. Maintenance of Information

Sec. 2202.103.  MAINTENANCE OF INFORMATION.  (a)  A joint underwriting association shall maintain at the association's principal administrative office adequate records of all transactions.
(b)  The association shall maintain the records in accordance with prudent recognized industry standards of recordkeeping.
(c)  The commissioner or the commissioner's designated representative is entitled to access to records maintained under Subsection (a) for examination, audit, and inspection.
(d)  Trade secrets, including the identity and addresses of policyholders and certificate holders, are confidential, except that the commissioner may use information otherwise confidential in proceedings instituted against an association.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter D. Audit and Examination Requirements › Section 2202.151. Annual Audit

Sec. 2202.151.  ANNUAL AUDIT.  An independent certified public accountant shall annually audit the books of accounts of a joint underwriting association as provided by Subchapter A, Chapter 401.  A copy of the audit must be filed with the commissioner.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter D. Audit and Examination Requirements › Section 2202.152. Examination by Commissioner

Sec. 2202.152.  EXAMINATION BY COMMISSIONER.  (a)  The commissioner may require an examination of a joint underwriting association as often as the commissioner considers necessary.  The association shall pay the reasonable costs of the examination on presentation to the association of a detailed account of the costs of the examination.
(b)  The association's officers and employees may be examined under oath at any time and shall exhibit on request all books, records, accounts, documents, or agreements governing the association's operations.
(c)  Instead of the examination, the commissioner may accept the report of an examination made by the insurance supervisory official of another state under the laws of that state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter E. Disciplinary Actions And › Section 2202.201. Grounds for Denial of Certificate of Authority or for Disciplinary Action

Sec. 2202.201.  GROUNDS FOR DENIAL OF CERTIFICATE OF AUTHORITY OR FOR DISCIPLINARY ACTION.  The commissioner may deny an application for a certificate of authority or discipline a certificate holder under this subchapter if the commissioner finds that the applicant or certificate holder, or an officer or director of an applicant or certificate holder:
(1)  wilfully violated or participated in the violation of this chapter or any other insurance law of this state;
(2)  intentionally made a material misstatement in the original or renewal application;
(3)  obtained or attempted to obtain the certificate by fraud or misrepresentation;
(4)  misappropriated, converted to a personal or other inappropriate use, or illegally withheld money required to be held in a fiduciary capacity;
(5)  has been convicted of a felony or convicted of a misdemeanor of which criminal fraud is an essential element; or
(6)  is incompetent or untrustworthy.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter E. Disciplinary Actions And › Section 2202.202. Denial of Certificate of Authority or Disciplinary Action

Sec. 2202.202.  DENIAL OF CERTIFICATE OF AUTHORITY OR DISCIPLINARY ACTION.  If the commissioner finds that a ground for a denial of a certificate of authority or disciplinary action under Section 2202.201 exists, the commissioner may:
(1)  deny the application for the certificate; or
(2)  suspend, revoke, or refuse to renew the certificate of authority.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter E. Disciplinary Actions And › Section 2202.203. Notice and Hearing

Sec. 2202.203.  NOTICE AND HEARING.  (a)  Before the commissioner may deny an application for a certificate of authority or discipline a certificate holder under this subchapter, the commissioner must:
(1)  give notice by certified mail to the applicant or certificate holder; and
(2)  set a date on which the applicant or certificate holder may appear to be heard and produce evidence.
(b)  A hearing under Subsection (a) may not be set for a date that is earlier than the 20th day  or later than the 30th day after the date the notice is mailed.
(c)  The notice must contain specific reasons for the hearing and a list of the matters to be considered at the hearing.
(d)  At the hearing, the commissioner or a department employee designated to conduct the hearing may:
(1)  administer oaths, require the appearance of witnesses, and examine any person under oath; and
(2)  on the commissioner's initiative or on the request of the applicant or certificate holder, require the production of books, records, or papers relevant to the inquiry.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter E. Disciplinary Actions And › Section 2202.204. Issuance of Order

Sec. 2202.204.  ISSUANCE OF ORDER.  On the termination of the hearing, the findings shall be written and filed with the department.  The commissioner shall issue an order showing the findings approved by the commissioner and shall send the order by certified mail to the applicant or certificate holder.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter E. Disciplinary Actions And › Section 2202.205. Appeal

Sec. 2202.205.  APPEAL.  If the commissioner denies an application for a certificate of authority as provided by this chapter or suspends, revokes, or refuses to renew a certificate at a hearing as provided by this chapter, the applicant or certificate holder may appeal the commissioner's action as provided by Subchapter D, Chapter 36.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter E. Disciplinary Actions And › Section 2202.206. Application After Denial, Refusal, or Revocation

Sec. 2202.206.  APPLICATION AFTER DENIAL, REFUSAL, OR REVOCATION.  (a)  Except as provided by Subsection (b), an applicant for a certificate of authority or certificate holder whose certificate of authority has been denied, refused, or revoked under this chapter may not file another application for a certificate of authority before the first anniversary of the effective date of the denial, refusal, or revocation.
(b)  If an applicant or certificate holder seeks judicial review of a denial, refusal, or revocation, the applicant or certificate holder may not file another application for a certificate of authority before the first anniversary of the date of a final court order or decree affirming the denial, refusal, or revocation.
(c)  If an applicant files an application after the date specified by this section, the commissioner may refuse the application unless the applicant shows good cause why the denial of the previous application or the refusal to renew or the revocation of the original certificate of authority should not be a bar to the issuance of a new certificate.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2202 - Joint Underwriting › Subchapter E. Disciplinary Actions And › Section 2202.207. Additional Sanctions; Injunction

Sec. 2202.207.  ADDITIONAL SANCTIONS; INJUNCTION.  (a)  An association that violates this chapter or a rule or order adopted under this chapter is subject to sanctions under Chapter 82.
(b)  The attorney general, a district or county attorney, or the commissioner may institute proceedings for an injunction or any other proceeding necessary to enforce this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2203 - Medical Liability Insurance Joint Underwriting Association › Subchapter A. General Provisions › Section 2203.001. Short Title

Sec. 2203.001.  SHORT TITLE.  This chapter may be cited as the Texas Medical Liability Insurance Underwriting Association Act.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2203 - Medical Liability Insurance Joint Underwriting Association › Subchapter A. General Provisions › Section 2203.002. Definitions

Sec. 2203.002.  DEFINITIONS.  In this chapter:
(1)  "Assisted living facility" means a for-profit or not-for-profit assisted living facility.
(2)  "Association" means the joint underwriting association established under this chapter.
(3)  "Board of directors" means the board of directors of the association.
(4)  "Health care provider" means:
(A)  a person, partnership, professional association, corporation, facility, or institution licensed or chartered by this state to provide health care, as defined in Section 74.001(a)(10), Civil Practice and Remedies Code, as:
(i)  a registered nurse, dentist, podiatrist, pharmacist, chiropractor, or optometrist;
(ii)  a hospital;
(iii)  a nursing home;
(iv)  a radiation therapy center that is independent of any other medical treatment facility, is licensed by the Department of State Health Services in that agency's capacity as the Texas Radiation Control Agency under Chapter 401, Health and Safety Code, and is in compliance with the regulations adopted under that chapter;
(v)  a blood bank that is a nonprofit corporation chartered to operate a blood bank and is accredited by the American Association of Blood Banks;
(vi)  a nonprofit corporation that is organized for the delivery of health care to the public and is certified under Chapter 162, Occupations Code;
(vii)  a health center, as defined by 42 U.S.C. Section 254b, as amended; or
(viii)  an assisted living facility; or
(B)  an officer, employee, or agent of an entity listed in Paragraph (A) acting in the course and scope of that person's office, employment, or agency.
(5)  "Medical liability insurance" means primary and excess liability insurance coverage against:
(A)  the legal liability of the insured; and
(B)  loss, damage, or expense incident to a claim arising out of the death or injury of a person as the result of negligence in rendering or failing to render professional service by a health care provider or physician who is in a category eligible for coverage by the association.
(6)  "Net direct premiums" means gross direct premiums written on automobile liability and other liability insurance written under this code, less:
(A)  policyholder dividends;
(B)  return premiums for the unused or unabsorbed portion of premium deposits; and
(C)  return premiums on canceled contracts written on the liability risks.
(7)  "Nursing home" means a for-profit or not-for-profit nursing home.
(8)  "Physician" means a person licensed to practice medicine in this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2203 - Medical Liability Insurance Joint Underwriting Association › Subchapter A. General Provisions › Section 2203.003. Immunity

Sec. 2203.003.  IMMUNITY.  Liability does not exist on the part of, and a cause of action does not arise against, the association, an association agent or employee, an insurer, an agent licensed under this code, the commissioner or department, or an authorized representative of the commissioner or department for a statement made in good faith by any of them:
(1)  in a report or communication concerning risks insured or to be insured through the association; or
(2)  at an administrative hearing conducted in connection with the report or communication.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2203 - Medical Liability Insurance Joint Underwriting Association › Subchapter A. General Provisions › Section 2203.004. Applicability of Other Law

Sec. 2203.004.  APPLICABILITY OF OTHER LAW.  The association is subject to Sections 401.051, 401.052, 401.054-401.062, 401.151, 401.152, 401.155, and 401.156 and Subchapter A, Chapter 86.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.