reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter G. Regulation of County Mutual Insurance Company; Financial Requirements › Section 912.302. Annual Statement Fee

Sec. 912.302.  ANNUAL STATEMENT FEE.  The department shall charge and the comptroller shall collect a fee of $20 for the filing of an annual statement by a county mutual insurance company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter G. Regulation of County Mutual Insurance Company; Financial Requirements › Section 912.303. Books and Records

Sec. 912.303.  BOOKS AND RECORDS.  (a)  A county mutual insurance company shall maintain the company's books and records in a form and manner that accurately reflects the condition of the company or the facts essential to the company's faithful and effective operation.
(b)  The company shall use forms or systems that most effectively serve the purposes of this section.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter G. Regulation of County Mutual Insurance Company; Financial Requirements › Section 912.304. Reinsurance

Sec. 912.304.  REINSURANCE.  (a)  A county mutual insurance company may reinsure any or all of the company's risks with another company against any hazard against which the county mutual insurance company is permitted to insure.
(b)  The county mutual insurance company may contract for mutual or reciprocal reinsurance with another company on the mutual or cooperative plan subject to the following conditions:
(1)  the county mutual insurance company may assume the reinsurance on the risks of the other company only if the other company reinsures the risks of the county mutual insurance company;  and
(2)  the county mutual insurance company may write or assume the reinsurance only on property that the company is authorized to insure and that is located in this state.
(c)  A county mutual insurance company that reinsures another company's property is liable for the losses of the other company only as specified in the reinsurance contract.  The county mutual insurance company does not become a member or partner of the other company as a result of the reinsurance.
(d)  A county mutual insurance company may pay or collect additional assessments or premiums for the purpose of a contract described by Subsection (b).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter G. Regulation of County Mutual Insurance Company; Financial Requirements › Section 912.305. Security Deposit

Sec. 912.305.  SECURITY DEPOSIT.  (a)  A county mutual insurance company shall maintain with the comptroller through the department a deposit in cash or, subject to the commissioner's approval, convertible securities.  The deposit must be equal to:
(1)  the largest amount assumed by the company on any one risk;  or
(2)  on a demonstration of reinsurance acceptable to the commissioner, the largest amount retained by the company on any one risk after reinsurance.
(b)  The deposit is liable for the payment of all judgments against the company and is subject to garnishment after final judgment against the company.  The company, on the commissioner's demand, must immediately replenish the deposit when the deposit is impounded or depleted.  If the company does not immediately replenish the deposit, the company may be regarded as insolvent.
(c)  If a county mutual insurance company makes a statement, including a statement contained in an advertisement, letter, or literature, that the company deposited cash or securities as required by this section, the company must also state in full:
(1)  the purpose, exact amount, and character of the deposit;  and
(2)  the conditions under which the deposit was made.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter G. Regulation of County Mutual Insurance Company; Financial Requirements › Section 912.306. Required Bonds

Sec. 912.306.  REQUIRED BONDS.  (a)  A county mutual insurance company shall obtain a bond for:
(1)  the officer responsible for handling the funds of the company's members;  and
(2)  all other office employees who may have access to the company's funds.
(b)  The bonds required under this section must:
(1)  be with a surety authorized by the department to engage in business in this state;
(2)  be made payable to the department for the use and benefit of the company's members;  and
(3)  obligate the principal and surety to pay pecuniary losses that the company sustains through an act of fraud, dishonesty, forgery, theft, embezzlement, wrongful abstraction, or wilful misapplication, regardless of whether the act is committed by the officer or employee directly and alone, or in cooperation with another person.
(c)  A bond under this section must:
(1)  be in an amount that is at least the greater of $1,000 or the amount of cash assets on hand, but not more than $20,000, if the bond covers the officer;  or
(2)  be in an amount established by the department that is at least $1,000 but not more than $5,000, if the bond covers office employees.
(d)  One or more persons may recover on a bond under this section until the bond is exhausted.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter G. Regulation of County Mutual Insurance Company; Financial Requirements › Section 912.307. Reserve Requirements

Sec. 912.307.  RESERVE REQUIREMENTS.  (a)  A county mutual insurance company shall maintain unearned premium reserves as provided by Section 862.102.
(b)  The company shall invest the unearned premium reserves and any other type of reserves authorized by the company's board of directors in the same type of securities in which the reserve funds of insurance companies engaged in the same kind of business are required to be invested by law.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter G. Regulation of County Mutual Insurance Company; Financial Requirements › Section 912.308. Amount and Investment of Surplus

Sec. 912.308.  AMOUNT AND INVESTMENT OF SURPLUS.  (a)  A county mutual insurance company shall maintain an unencumbered surplus which may be invested only in items listed in Section 822.204.  The unencumbered surplus must be at least:
(1)  $25,000, if the company is organized to write insurance coverage locally in only the county of its domicile;
(2)  $50,000, if the company is organized to write insurance coverage in only the county of its domicile and any adjacent county;  or
(3)  an amount equal to the aggregate of the minimum capital and minimum surplus required under Sections 822.054, 822.202, 822.210, and 822.211, for a fire insurance company if the county mutual insurance company is organized to write insurance coverage statewide.
(b)  Except as provided by Section 912.056, a county mutual insurance company is subject to Subchapter B, Chapter 404, and Sections 822.203, 822.210, and 822.212.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.112, eff. April 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 677 (H.B. 2449), Sec. 2, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter G. Regulation of County Mutual Insurance Company; Financial Requirements › Section 912.309. Policyholder Loans to Company

Sec. 912.309.  POLICYHOLDER LOANS TO COMPANY.  (a)  A policyholder may loan to a county mutual insurance company money as necessary:
(1)  for the company to engage in the company's business;  or
(2)  to enable the company to comply with a requirement of this chapter, including the unencumbered surplus requirement under Section 912.308.
(b)  Subject to the approval of the commissioner, the county mutual insurance company may repay a loan and agreed interest, at an annual rate not to exceed 10 percent, only from the surplus remaining after the company provides for the company's reserves, other liabilities, and required surplus.
(c)  A loan under this section or interest on a loan is not otherwise a liability or claim against the company or any of its assets.
(d)  A county mutual insurance company may not pay a commission, promotion expense, or other bonus in connection with a loan made to the company.
(e)  A county mutual insurance company shall report in its annual statement the amount of each loan made to the company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter G. Regulation of County Mutual Insurance Company; Financial Requirements › Section 912.310. Certain Companies Exempt

Sec. 912.310.  CERTAIN COMPANIES EXEMPT.  (a)  Chapter 196, Acts of the 53rd Legislature, Regular Session, 1953, and Chapter 117, Acts of the 54th Legislature, Regular Session, 1955, do not apply to a county mutual insurance company:
(1)  that was organized and operating as a county mutual fire insurance company on May 22, 1953;  and
(2)  the business of which is devoted exclusively to the writing of industrial fire insurance policies covering dwellings, household goods and wearing apparel on a weekly, monthly, or quarterly basis on a continuous premium payment plan.
(b)  The exemption established by this section applies only so long as the company is engaged exclusively in the writing of industrial fire insurance policies described by Subsection (a).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter O. General Financial Regulation › Section 912.701. Hazardous Financial Condition, Supervision, Conservatorship, and Liquidation

Sec. 912.701.  HAZARDOUS FINANCIAL CONDITION, SUPERVISION, CONSERVATORSHIP, AND LIQUIDATION.  Subchapter A, Chapter 404, and Chapters 441 and 443 apply to a county mutual insurance company engaged in the business of insurance in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.113, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter P. Disciplinary Action and Procedures in General › Section 912.751. Officer or Director Unworthy of Trust: Removal and Revocation of Certificate of Authority

Sec. 912.751.  OFFICER OR DIRECTOR UNWORTHY OF TRUST:  REMOVAL AND REVOCATION OF CERTIFICATE OF AUTHORITY.  (a)  After notice and hearing, the commissioner shall order the removal of an officer or director of a county mutual insurance company holding a certificate of authority if the officer or director is found unworthy of the trust or confidence of the public.
(b)  If a county mutual insurance company does not remove an officer or director as required by an order issued under Subsection (a), the commissioner shall:
(1)  revoke the company's certificate of authority;  and
(2)  treat the company as insolvent.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter P. Disciplinary Action and Procedures in General › Section 912.752. Fraudulent Operation or Improper Contests: Revocation of Certificate of Authority

Sec. 912.752.  FRAUDULENT OPERATION OR IMPROPER CONTESTS:  REVOCATION OF CERTIFICATE OF AUTHORITY.  After notice and hearing, the commissioner shall revoke the certificate of authority of a county mutual insurance company that is:
(1)  operating fraudulently;  or
(2)  improperly contesting the company's claims.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter P. Disciplinary Action and Procedures in General › Section 912.753. Time Limit to Appeal

Sec. 912.753.  TIME LIMIT TO APPEAL.  An individual or a county mutual insurance company may appeal an order or a ruling of the commissioner under this chapter not later than the 60th day after the date of the order or ruling, in accordance with Subchapter D, Chapter 36.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter Q. General Criminal Penalties › Section 912.801. Violation of Chapter; Criminal Penalty

Sec. 912.801.  VIOLATION OF CHAPTER;  CRIMINAL PENALTY.  (a)  Except as otherwise provided by this subchapter, a person, including a director, officer, agent, employee, attorney at law, or attorney in fact of a county mutual insurance company, commits an offense if the person violates this chapter.
(b)  An offense under this section is punishable by:
(1)  a fine of not more than $500;
(2)  confinement in jail for a term of not more than 180 days;  or
(3)  both a fine and confinement as provided by Subdivisions (1) and (2).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter Q. General Criminal Penalties › Section 912.802. Conversion; Criminal Penalty

Sec. 912.802.  CONVERSION;  CRIMINAL PENALTY.  (a)  A director, officer, agent, employee, attorney at law, or attorney in fact of a county mutual insurance company commits an offense if the person fraudulently takes or converts to the person's own use or secretes with the intent to take or convert to the person's own use, and with knowledge that the person is not entitled to receive it, any property or other thing of value of the company that is in the person's custody, control, or possession as a result of the person's office, directorship, agency, or employment or in any other manner.
(b)  A director, officer, agent, employee, attorney at law, or attorney in fact of a county mutual insurance company commits an offense if the person pays or delivers property or another thing of value described by Subsection (a) to another person knowing that the person is not entitled to receive it.
(c)  An offense under this section is punishable by imprisonment in the Texas Department of Criminal Justice for a term of not more than 10 years or less than 2 years.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 25.126, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter Q. General Criminal Penalties › Section 912.803. Unlawful Diversion of Funds; Criminal Penalty

Sec. 912.803.  UNLAWFUL DIVERSION OF FUNDS;  CRIMINAL PENALTY.  (a)  A director, officer, agent, employee, attorney at law, or attorney in fact of a county mutual insurance company commits an offense if the person wilfully borrows, withholds, or diverts from its purpose in any manner all or part of a special fund that:
(1)  belongs to or is under the control and management of the company;  and
(2)  is designated by law for that purpose.
(b)  An offense under this section is punishable by imprisonment in the Texas Department of Criminal Justice for a term of not more than 10 years or less than 2 years.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 25.127, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle F - Farm and County Mutual Insurance Companies › Chapter 912 - County Mutual Insurance Companies › Subchapter Q. General Criminal Penalties › Section 912.804. False Affidavit; Criminal Penalty

Sec. 912.804.  FALSE AFFIDAVIT;  CRIMINAL PENALTY.  (a)  An officer, director, agent, employee, attorney at law, or attorney in fact of a county mutual insurance company commits an offense if the person wilfully makes a false affidavit in connection with the requirements of this chapter.
(b)  An offense under this section is punishable by:
(1)  a fine of not more than $500; or
(2)  confinement in jail or imprisonment in the Texas Department of Criminal Justice for a term of not more than two years.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 25.128, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter A. General Provisions › Section 941.001. Definitions

Sec. 941.001.  DEFINITIONS.  In this chapter:
(1)  "Affiliate" has the meaning described by Section 823.003.
(2)  "Attorney in fact" means an attorney in fact authorized under a power of attorney to act for the underwriters of a Lloyd's plan.
(3)  "Lloyd's plan" means an entity engaged in the business of writing insurance on the Lloyd's plan.
(4)  "Underwriter" means an individual, partnership, or association of individuals that writes insurance on the Lloyd's plan.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter A. General Provisions › Section 941.002. Lloyd's Plan Insurance Authorized; Life Insurance Prohibited

Sec. 941.002.  LLOYD'S PLAN INSURANCE AUTHORIZED;  LIFE INSURANCE PROHIBITED.  (a)  Except as provided by Subsection (b), a Lloyd's plan may write any kind of insurance that may be lawfully written in this state, including:
(1)  fire insurance, including tornado, hail, crop, and floater insurance;
(2)  automobile insurance, including fire, theft, transportation, property damage, collision liability, and tornado insurance;
(3)  liability insurance;
(4)  marine insurance;
(5)  accident and health insurance;
(6)  burglary insurance;
(7)  plate glass insurance;  and
(8)  fidelity and surety bonds insurance.
(b)  A Lloyd's plan may not write life insurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter A. General Provisions › Section 941.003. Limited Exemption From Insurance Laws; Application of Certain Laws

Sec. 941.003.  LIMITED EXEMPTION FROM INSURANCE LAWS;  APPLICATION OF CERTAIN LAWS.  (a)  A Lloyd's plan is exempt from the operation of all insurance laws of this state except as specifically provided in this chapter or unless it is specifically provided in the other law that the law is applicable.
(b)  A Lloyd's plan is subject to:
(1)  Subchapter A, Chapter 5, Chapter 254, Subchapters A and B, Chapter 1806, and Subtitle C, Title 10;
(2) Articles 5.35, 5.39, and 5.40;
(3) Article 5.13-2, as provided by that article, Chapter 2251, as provided by that chapter, and Chapter 2301, as provided by that chapter;
(4) Chapters 251, 252, 402, 541, and 2253;
(5)  Subchapter A, Chapter 401;
(6)  Subchapter B, Chapter 404;
(7)  Subchapter C, Chapter 1806; and
(8)  Sections 38.001, 501.159, 822.203, 822.205, 822.210, 822.212, 2002.005, 2002.051, and 2002.052.
(c)  Chapter 2007 applies to rates for motor vehicle insurance written by a Lloyd's plan.
(d)  Underwriters and their attorney in fact are subject to Sections 822.051, 822.057, 822.058, 822.059, 822.060, and 822.201, except that:
(1)  the articles of agreement executed by the underwriters are instead of the articles of incorporation;  and
(2)  the aggregate of the guaranty fund and unencumbered surplus of the Lloyd's plan constitutes capital structure for purposes of Section 822.060.
(e)  A Lloyd's plan is subject to Chapter 2210, as provided by that chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 206, Sec. 21.43(a), (b), eff. June 11, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 631 (H.B. 2565), Sec. 5, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch. 1295 (H.B. 2614), Sec. 2, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.114, eff. April 1, 2009.
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.026, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.026, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 42, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter A. General Provisions › Section 941.004. Withdrawal From the Business of Insurance

Sec. 941.004.  WITHDRAWAL FROM THE BUSINESS OF INSURANCE.  (a)  A Lloyd's plan may withdraw from the business of insurance only if the department determines that adequate provision has been made, through reinsurance or other means, for:
(1)  payment of all unadjusted losses of the Lloyd's plan;  and
(2)  reinsurance of all outstanding risks in favor of residents of this state or covering property located in this state.
(b)  On compliance with the requirements of Subsection (a):
(1)  any bond of the attorney in fact shall be released;  and
(2)  the department shall release to the underwriters any net assets over which the department has joint control.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter B. Formation and Structure of Lloyd's Plan › Section 941.051. Formation of Lloyd's Plan

Sec. 941.051.  FORMATION OF LLOYD'S PLAN.  (a)  To write insurance on the Lloyd's plan, underwriters must:
(1)  execute articles of agreement expressing the intent to write insurance;  and
(2)  comply with the requirements of this chapter.
(b)  A Lloyd's plan must have at least 10 underwriters.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter B. Formation and Structure of Lloyd's Plan › Section 941.052. Attorney in Fact

Sec. 941.052.  ATTORNEY IN FACT.  (a)  The attorney in fact may execute insurance policies for the Lloyd's plan.
(b)  The principal office of the attorney in fact must be maintained at the place designated by the underwriters in the articles of agreement.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter B. Formation and Structure of Lloyd's Plan › Section 941.053. Deputy or Substitute Attorney in Fact

Sec. 941.053.  DEPUTY OR SUBSTITUTE ATTORNEY IN FACT.  An appointed deputy attorney in fact or substitute attorney in fact for an attorney in fact holding a certificate of authority under this chapter and accepting powers of attorney from underwriters is authorized by the certificate of authority to:
(1)  issue or make a policy or contract of insurance;  and
(2)  perform any other act incident to issuing or making a policy or contract of insurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter B. Formation and Structure of Lloyd's Plan › Section 941.054. Name of Lloyd's Plan

Sec. 941.054.  NAME OF LLOYD'S PLAN.  The name under which a Lloyd's plan engages in business:
(1)  must contain the word "Lloyd's";  and
(2)  may not be so similar to any name in use in this state as to be likely to confuse or deceive.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter C. Authority to Engage in Business › Section 941.101. Certificate of Authority Required

Sec. 941.101.  CERTIFICATE OF AUTHORITY REQUIRED.  (a)  An attorney in fact may not write insurance in this state or for residents of this state or covering property located in this state unless the attorney in fact holds a certificate of authority issued under this chapter.
(b)  Except as otherwise provided by this chapter, an attorney in fact must:
(1)  be a resident of this state;  and
(2)  maintain the attorney in fact's office in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter C. Authority to Engage in Business › Section 941.102. Application for Certificate of Authority

Sec. 941.102.  APPLICATION FOR CERTIFICATE OF AUTHORITY.  (a)  The attorney in fact shall file with the department a verified application for a certificate of authority that states:
(1)  the name of the attorney in fact;
(2)  the name under which the Lloyd's plan will engage in the business of insurance;
(3)  the names and addresses of the underwriters;
(4)  the location of the principal office;  and
(5)  the kinds of insurance to be written.
(b)  The application must be accompanied by:
(1)  a copy of each form of policy or contract under which insurance will be written;
(2)  a copy of the form of the power of attorney under which the attorney in fact will act for and bind the underwriters;
(3)  a copy of the articles of agreement executed by the underwriters and the attorney in fact;
(4)  a financial statement showing in detail:
(A)  assets held by the attorneys in fact, committee of underwriters, trustees, or other officers of the Lloyd's plan;
(B)  liabilities incurred and outstanding;  and
(C)  income received and disbursements made by the attorney in fact;
(5)  an instrument executed by each underwriter authorizing the attorney in fact to accept service of process for each underwriter in any action on a policy or contract of insurance;  and
(6)  an instrument from the attorney in fact that delegates to the department the power of the attorney in fact to accept service of process.
(c)  On filing the application, the attorney in fact shall pay to the department a fee of $10.  A fee collected under this subsection shall be deposited to the credit of the Texas Department of Insurance operating account.
(d)  Sections 201.001 and 201.002 apply to a fee collected under Subsection (c).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.115, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter C. Authority to Engage in Business › Section 941.103. Issuance of Certificate of Authority

Sec. 941.103.  ISSUANCE OF CERTIFICATE OF AUTHORITY.  On determination by the department that the underwriters and attorney in fact have complied with the law, the department shall, in accordance with Sections 801.001, 801.002, 801.051-801.055, 801.057, and 801.101, issue a certificate of authority to the attorney in fact.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter D. Operation, Powers, and Duties of Lloyd's Plan › Section 941.151. Liability of Underwriter

Sec. 941.151.  LIABILITY OF UNDERWRITER.  (a)  Subject to Subsection (c), an underwriter by contract with the persons insured may limit the underwriter's liability to the percentage of the loss that equals the ratio of the underwriter's subscription paid in cash or securities allowed by this chapter to the total guaranty fund contributed by all the underwriters.
(b)  Subject to Subsection (c), an underwriter's total liability on all risks may be limited to the amount of the underwriter's subscription, as expressed in the underwriter's power of attorney and agreement with the attorney in fact.
(c)  At least half of an underwriter's subscription must be paid or contributed to the guaranty fund in cash or admissible securities.
(d)  An underwriter is responsible solely for the underwriter's liability as provided by the insurance contract.  An underwriter is not liable as a partner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter D. Operation, Powers, and Duties of Lloyd's Plan › Section 941.152. Liability of Additional or Substituted Underwriter

Sec. 941.152.  LIABILITY OF ADDITIONAL OR SUBSTITUTED UNDERWRITER.  An additional or substituted underwriter is liable in the same manner and to the same extent as an original subscriber to the articles of agreement and power of attorney on file with the department.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter D. Operation, Powers, and Duties of Lloyd's Plan › Section 941.153. Accrual of Profits

Sec. 941.153.  ACCRUAL OF PROFITS.  The profits of a Lloyd's plan may accrue to an underwriter only on the basis of the underwriter's actual investment in cash or convertible securities, without regard to any obligation or subscription of the underwriter to pay additional cash or securities in the future.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter D. Operation, Powers, and Duties of Lloyd's Plan › Section 941.154. Assumption of Risk by Certain Affiliated Insurers

Sec. 941.154.  ASSUMPTION OF RISK BY CERTAIN AFFILIATED INSURERS.  An insurer who is subject to Article 5.26 may not directly or indirectly assume all or a substantial part of a risk covered by a policy written by a Lloyd's plan that is an affiliate of the insurer if the risk is written at a rate less than the rate that may be lawfully charged by:
(1)  the insurer;  or
(2)  one of the insurer's affiliates that is subject to Article 5.26.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter D. Operation, Powers, and Duties of Lloyd's Plan › Section 941.155. Promotion of Lloyd's Plan

Sec. 941.155.  PROMOTION OF LLOYD'S PLAN.  (a)  An individual, firm, or corporation may not be instrumental in organizing a Lloyd's plan if, in the organization of the Lloyd's plan, compensation is paid to the individual, firm, or corporation or to a representative of the individual, firm, or corporation for procuring underwriters or a guaranty fund for the Lloyd's plan unless the individual, firm, or corporation holds a permit issued by the department that authorizes the charging of a commission in connection with organizing the Lloyd's plan.
(b)  Not more than 10 percent of the total amount of an underwriter's subscription to a Lloyd's plan may be paid to any person as a commission for the sale of units of or an interest in the Lloyd's plan or for procuring underwriters for the Lloyd's plan.
(c)  This section applies to the continued organization or extension of a Lloyd's plan, if a commission is to be paid in connection with the organization or extension.  With respect to a continued organization or extension of a Lloyd's plan, the commissioner may not refuse the permit because of the contemplated size or amount of the guaranty fund of the Lloyd's plan.
(d)  After the permit has been granted, securities may not be accepted as contributions to the guaranty fund unless the securities have been approved in advance by the department as complying with this chapter with respect to the investment of the funds of a Lloyd's plan.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter D. Operation, Powers, and Duties of Lloyd's Plan › Section 941.156. Reinsurance Permitted

Sec. 941.156.  REINSURANCE PERMITTED.  This chapter does not prevent a domestic Lloyd's plan from reinsuring:
(1)  the Lloyd's plan's excess lines with a solvent foreign Lloyd's plan acceptable to the department that does not hold a certificate of authority to engage in the business of insurance in this state;  or
(2)  any business from a foreign Lloyd's plan described by Subdivision (1).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter E. Financial Requirements › Section 941.201. Required Net Assets

Sec. 941.201.  REQUIRED NET ASSETS.  The department may not issue a certificate of authority to an attorney in fact unless the net assets contributed to the attorney in fact, a committee of underwriters, a trustee, or other officers as provided for in the articles of agreement constitute a guaranty fund and surplus over and above all of the Lloyd's plan's liabilities that is at least equal to the minimum capital stock and surplus required of a stock insurance company engaging in the same kinds of business.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter E. Financial Requirements › Section 941.202. Limitation of Business

Sec. 941.202.  LIMITATION OF BUSINESS.  (a)  Except as provided by Subsection (c), a Lloyd's plan may not assume or write insurance risks in this state, for residents of this state, or covering property located in this state that produce an amount of net premium income that exceeds 10 times the value of the net assets of the underwriters.
(b)  If the insurance risks written or assumed by a Lloyd's plan produce a net premium income that exceeds the limit specified by Subsection (a), the Lloyd's plan may not write or assume an additional insurance risk until the net assets have been increased to a level that brings the net premium income produced by the additional insurance risk within that limit.
(c)  The limit imposed by Subsection (a) does not apply to a Lloyd's plan if:
(1)  the Lloyd's plan's net assets equal at least the amount of money required of a stock insurance company engaged in the same kind of business in this state;  or
(2)  the department determines that the Lloyd's plan, through reinsurance or other contracts with other responsible and solvent insurers, has reduced the net lines at risk carried by the Lloyd's plan so that its operations are safe and its solvency is not in danger.
(d)  An attorney in fact for a Lloyd's plan may not assume an insurance risk that exceeds one-tenth of the sum of the amount of the net assets of the underwriters as described in this subchapter and the amount of the additional liability assumed by the individual underwriters in the articles of agreement and in policies or contracts of insurance, unless the excess insurance risk is promptly reinsured.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter E. Financial Requirements › Section 941.203. Computation of Reserve

Sec. 941.203.  COMPUTATION OF RESERVE.  A Lloyd's plan shall compute reserve liabilities for outstanding business and incurred losses on the same basis required for a stock insurance company engaged in the same kinds of business in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter E. Financial Requirements › Section 941.204. Authorized Investments

Sec. 941.204.  AUTHORIZED INVESTMENTS.  (a)  The minimum guaranty fund and surplus required of a Lloyd's plan under Sections 822.054, 822.202, 822.210, 822.211, and 941.201 must be:
(1)  in cash;  or
(2)  invested as provided by:
(A)  Section 822.204;  or
(B)  any other law governing the investment of the capital stock and minimum surplus of a capital stock insurance company engaged in the same kind of business.
(b)  Funds of a Lloyd's plan other than the minimum guaranty fund and surplus described by Subsection (a) must, if invested, be invested as provided by:
(1)  the provisions of Subchapter B, Chapter 424, other than Sections 424.052, 424.072, and 424.073; or
(2)  any other law governing the investment of the funds of a capital stock insurance company engaged in the same kind of business.
(c)  A Lloyd's plan may purchase, hold, or convey real property in accordance with Section 862.002.
(d)  A Lloyd's plan organized before August 10, 1943, and engaging in business under a certificate of authority issued by the former Board of Insurance Commissioners is not required to comply with this section except as to securities acquired on or after August 10, 1943, regardless of whether those securities were substituted for securities held before that date or were acquired from additional, successor, or substituted underwriters.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.116, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter E. Financial Requirements › Section 941.205. Joint Control of Minimum Assets

Sec. 941.205.  JOINT CONTROL OF MINIMUM ASSETS.  (a)  To the extent of the minimum required under this subchapter, the assets of a Lloyd's plan must be made subject to the joint control of the attorney in fact and the department, in a manner satisfactory to the department, so that the assets may not be withdrawn, diverted, or spent without the approval of the department or for a purpose not permitted under this chapter.
(b)  The underwriters are entitled to the interest or income accruing from property or securities placed under joint control under Subsection (a) as the interest or income becomes payable.
(c)  As an alternative to submitting assets to joint control under Subsection (a), an attorney in fact for a Lloyd's plan engaged in business before August 20, 1929, may execute a bond in the amount of $25,000 for the safekeeping of assets, to be released only on approval of the department.  The corporate surety and the form of the bond must be approved by the department.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter E. Financial Requirements › Section 941.206. Hazardous Financial Condition, Supervision, Conservatorship, and Liquidation; Impairment of Surplus

Sec. 941.206.  HAZARDOUS FINANCIAL CONDITION, SUPERVISION, CONSERVATORSHIP, AND LIQUIDATION; IMPAIRMENT OF SURPLUS.  (a)  Subchapter A, Chapter 404, and Chapters 441 and 443 apply to a Lloyd's plan engaged in the business of insurance in this state.
(b)  Subchapter B, Chapter 404, applies to a Lloyd's plan.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.117, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter F. Regulation of Lloyd's Plan › Section 941.251. Examinations

Sec. 941.251.  EXAMINATIONS.  (a)  The provisions of Sections 86.001, 86.002, 401.051, 401.052, 401.054-401.062, 401.151, 401.152, 401.155, and 401.156 that relate to the examination of insurers apply to a Lloyd's plan.
(b)  The department may examine the books and affairs of an attorney in fact for a Lloyd's plan.  The attorney in fact and each deputy attorney in fact shall facilitate the examination and furnish any information reasonably required by the department.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.118, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter F. Regulation of Lloyd's Plan › Section 941.252. Annual Report

Sec. 941.252.  ANNUAL REPORT.  (a)  An attorney in fact shall annually file with the department a verified report on a form prepared by the department of:
(1)  the business conducted by the attorney in fact on behalf of the Lloyd's plan during the preceding year;
(2)  the condition of the affairs of the Lloyd's plan;  and
(3)  any other information required by the department.
(b)  The report must cover all of the business conducted by the attorney in fact on behalf of the Lloyd's plan, without regard to the place where the business was conducted.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter G. Foreign Lloyd's Plan › Section 941.301. Foreign Lloyd's Plan; Bond or Minimum Net Assets Required

Sec. 941.301.  FOREIGN LLOYD'S PLAN;  BOND OR MINIMUM NET ASSETS REQUIRED.  (a)  Except as provided by Subsection (b), the commissioner may not issue a certificate of authority to an attorney in fact if:
(1)  the underwriters are not residents of this state;  or
(2)  the underwriters maintain their principal office outside of this state.
(b)  The department may issue a certificate of authority to an attorney in fact in circumstances described by Subsection (a) if the underwriters, at their option:
(1)  file a bond with the department that complies with Section 941.302;  or
(2)  maintain net assets in this state that:
(A)  are subject to the joint control of the attorney in fact and the commissioner;  and
(B)  meet the requirements of Subchapter E regarding the minimum amount of net assets of a Lloyd's plan.
(c)  A deposit of securities made under Subsection (b)(2) is considered to have been made on the same terms and conditions as a bond executed in accordance with Section 941.302.
(d)  If there is recovery on a deposit or bond made under this section, the commissioner shall immediately demand that additional security be provided to increase the amount of the bonds to the minimum amount required by this section.  The additional bond must be posted not later than the 30th day after the date the commissioner makes the demand.  Successive recoveries may be made on a bond made under this section until the principal amount of the bond is exhausted.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.