reglab/statecodes huggingface dataset:
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 H. Revenue Bond Program › Section 2203.359. Surcharge Fee

Sec. 2203.359.  SURCHARGE FEE.  (a)  A surcharge fee is assessed against:
(1)  each association member; and
(2)  the association.
(b)  The commissioner shall set the surcharge fee in an amount sufficient to pay all debt service on the bonds issued under this subchapter.  Each association member and the association shall pay the surcharge fee as required by the commissioner by rule.
(c)  The comptroller shall collect the surcharge fee and the department shall reimburse the comptroller in the manner described by Section 201.052.
(d)  The commissioner, in consultation with the comptroller, may coordinate payment and collection of the surcharge fee with other payments made by association members and collected by the comptroller.
(e)  Except as provided by Subsection (f), as a condition of engaging in the business of insurance in this state, an association member agrees that, if the member leaves the liability insurance market in this state, the member remains obligated to pay the member's share of the surcharge fee assessed under this section until the bonds are retired.  The amount assessed against a member under this subsection must be:
(1)  proportionate to the member's share of the liability insurance market, including automobile liability insurance, in this state as of the last complete reporting period before the date the member ceases to engage in the liability insurance business in this state; and
(2)  based on the member's gross premiums for liability insurance, including automobile liability insurance, for the member's last reporting period.
(f)  An association member is not required to pay the proportionate amount under Subsection (e) in any year in which the surcharge fee assessed against association members continuing to write liability insurance in this state is sufficient to service the bond obligation.
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 H. Revenue Bond Program › Section 2203.360. Exemption From Taxation

Sec. 2203.360.  EXEMPTION FROM TAXATION.  Bonds issued under this subchapter, any interest from the bonds, and all assets pledged to secure the payment of the bonds are exempt from taxation by the state or a political subdivision 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 2203 - Medical Liability Insurance Joint Underwriting Association › Subchapter H. Revenue Bond Program › Section 2203.361. Authorized Investments

Sec. 2203.361.  AUTHORIZED INVESTMENTS.  Bonds issued under this subchapter are authorized investments under Subchapter B, Chapter 424, and Subchapter D, Chapter 425.
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 H. Revenue Bond Program › Section 2203.362. State Pledge Regarding Bond Owner Rights and Remedies

Sec. 2203.362.  STATE PLEDGE REGARDING BOND OWNER RIGHTS AND REMEDIES.  (a)  The state pledges to and agrees with the owners of bonds issued in accordance with this subchapter that the state will not limit or alter the rights vested in the association to fulfill the terms of agreements made with the owners or impair the rights and remedies of the owners until the following obligations are fully discharged:
(1)  the bonds;
(2)  any bond premium;
(3)  interest; and
(4)  all costs and expenses related to an action or proceeding by or on behalf of the owners.
(b)  The association may include the state's pledge and agreement under Subsection (a) in an agreement with the owners of the bonds.
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 H. Revenue Bond Program › Section 2203.363. Payment Enforceable by Mandamus

Sec. 2203.363.  PAYMENT ENFORCEABLE BY MANDAMUS.  A writ of mandamus and any other legal or equitable remedy are available to a party in interest to require the association or another party to fulfill an agreement or perform a function or duty under:
(1)  this subchapter;
(2)  the Texas Constitution; or
(3)  a bond resolution.
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 I. Appeals › Section 2203.401. Definition

Sec. 2203.401.  DEFINITION.  In this subchapter, "act" includes a ruling or decision.
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 I. Appeals › Section 2203.402. Appeal to Board of Directors; Hearing

Sec. 2203.402.  APPEAL TO BOARD OF DIRECTORS; HEARING.  (a)  A person insured or applying for insurance under this chapter, the person's authorized representative, or an affected insurer that may be aggrieved by an act of the association may appeal to the board of directors not later than the 30th day after the date the act occurs.  At the time the person is notified of the act, the association shall provide to the person written notice of the person's right to appeal under this subsection.
(b)  The board of directors shall:
(1)  hear an appeal brought under Subsection (a) not later than the 30th day after the date the board of directors receives the appeal; and
(2)  give not less than 10 days' written notice of the time and place of the hearing to the person bringing the appeal or the person's authorized representative.
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 I. Appeals › Section 2203.403. Decision of Board of Directors

Sec. 2203.403.  DECISION OF BOARD OF DIRECTORS.  (a)  Not later than the 10th day after the date of the hearing under Section 2203.402(b), the board of directors shall affirm, reverse, or modify the board's previous action or the appealed act.
(b)  At the time the person is notified of the final action of the board of directors, the association shall provide to the person written notice of the person's right to appeal under Section 2203.404.
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 I. Appeals › Section 2203.404. Appeal to Commissioner; Hearing

Sec. 2203.404.  APPEAL TO COMMISSIONER; HEARING.  (a)  Not later than the 30th day after the date of the final action of the board of directors under Section 2203.403, a person insured or applying for insurance aggrieved by that final action may appeal to the commissioner by making a written request for a hearing.
(b)  The appeal shall be heard not later than the 30th day after the date the appeal is received.  The person bringing the appeal or the person's authorized representative must be given written notice of the time and place of the hearing on or before the 10th day before the date of the hearing.
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 I. Appeals › Section 2203.405. Commissioner's Decision

Sec. 2203.405.  COMMISSIONER'S DECISION.  (a)  Not later than the 30th day after the date of the hearing under Section 2203.404, the commissioner shall affirm, reverse, or modify the appealed act.
(b)  Pending the hearing and decision, the commissioner may suspend or postpone the effective date of a rule or of the act appealed.
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 I. Appeals › Section 2203.406. Appeal of Commissioner's Decision

Sec. 2203.406.  APPEAL OF COMMISSIONER'S DECISION.  (a)  The association or a person aggrieved by an order or decision of the commissioner may appeal in accordance with Subchapter D, Chapter 36.
(b)  At the time the person is notified of the commissioner's order or decision, the commissioner shall provide to the person written notice of the person's right to appeal under this section.
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 2204 - Texas Insurance Exchange › Subchapter A. General Provisions › Section 2204.001. Definitions

Sec. 2204.001.  DEFINITIONS.  In this chapter:
(1)  "Directors" means the board of directors of the exchange.
(2)  "Exchange" means the Texas Insurance Exchange.
(3)  "Member" means a person, firm, corporation, or underwriting syndicate authorized by the directors to insure or reinsure risks through the exchange.
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 2204 - Texas Insurance Exchange › Subchapter A. General Provisions › Section 2204.002. Exemption

Sec. 2204.002.  EXEMPTION.  (a)  This chapter, Chapters 251 and 261, and rules adopted by the commissioner or comptroller, as applicable, apply to the exchange, a member, and insurance and reinsurance written through the exchange, except to the extent exempted by rules adopted by the commissioner or comptroller, as applicable.
(b)  An exemption may not be:
(1)  unfairly discriminatory; or
(2)  detrimental to the solvency of an insurer authorized to engage in the business of insurance 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 2204 - Texas Insurance Exchange › Subchapter A. General Provisions › Section 2204.003. Rules

Sec. 2204.003.  RULES.  The commissioner shall  adopt rules for the operation and management of the exchange.
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 2204 - Texas Insurance Exchange › Subchapter B. Operation and Management › Section 2204.051. Purpose of Exchange; Specific Authorization for Certain Insurance

Sec. 2204.051.  PURPOSE OF EXCHANGE; SPECIFIC AUTHORIZATION FOR CERTAIN INSURANCE.  (a)  The exchange shall provide a facility for underwriting:
(1)  reinsurance of any kind of insurance;
(2)  direct insurance of any kind of risk located entirely outside the United States;
(3)  direct insurance of any kind of risk that:
(A)  is located in another state; and
(B)  qualifies for placement under the excess and surplus lines requirements of the jurisdiction in which the risk is located; and
(4)  a risk located in this state that has been submitted to and certified as rejected by a committee representing at least three and not more than seven insurers authorized to engage in the business of insurance in this state and subject to conditions imposed by rules adopted by the commissioner.
(b)  For purposes of Chapter 101, insurance or reinsurance a member writes to cover a risk described by Subsection (a)(4) is considered to be specifically authorized by the 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 2204 - Texas Insurance Exchange › Subchapter B. Operation and Management › Section 2204.052. Operation of Exchange

Sec. 2204.052.  OPERATION OF EXCHANGE.  The exchange shall operate under:
(1)  a constitution and bylaws adopted by the exchange and approved by the department; and
(2)  rules adopted by the commissioner under Section 2204.003.
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 2204 - Texas Insurance Exchange › Subchapter B. Operation and Management › Section 2204.053. Constitution and Bylaws

Sec. 2204.053.  CONSTITUTION AND BYLAWS.  (a)  In this section:
(1)  "Principal office" means an office at which officers and personnel who are engaged in administration, underwriting, claims adjustment, policyholders' service, marketing, accounting, recordkeeping, and support services are located.
(2)  "Subscriber" means a person, firm, corporation, or other organization that, on payment of fees or dues required by the constitution and bylaws, the directors designate as a subscriber.
(b)  The constitution and bylaws of the exchange must provide for:
(1)  the election of nine directors, four of whom represent the public interest and are not members, subscribers, or agents of the exchange;
(2)  the locations of the principal offices of the exchange and the members in this state for transacting business described by Section 2204.051(a);
(3)  the submission by the exchange, members, and applicants for membership in the exchange of financial information required by rules adopted by the commissioner;
(4)  the establishment and maintenance by the exchange of a security fund in a form and amount specified by rules adopted by the commissioner;
(5)  the voting power of members; and
(6)  members' rights and duties, including the manner of conducting business, financial stability, dues, membership fees, mandatory arbitration, and any other matter necessary or appropriate to conduct business authorized by this chapter.
(c)  For an agent transacting business on the exchange to participate in the operation and management of the exchange, the constitution and bylaws of the exchange must provide for the voting power and other rights granted to a nonprofit corporation under the Business Organizations Code.
(c-1)  Expired.
(c-2)  Expired.
(d)  In a manner that complies with the requirements adopted under this section, the exchange may, with the department's approval, amend the exchange's constitution or bylaws in accordance with the terms of the constitution and bylaws.
(e)  The constitution, a bylaw, or an amendment to the constitution or a bylaw is invalid without the department's approval.
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 2204 - Texas Insurance Exchange › Subchapter B. Operation and Management › Section 2204.054. Directors

Sec. 2204.054.  DIRECTORS.  (a)  The directors shall operate and manage the exchange in accordance with rules adopted under Section 2204.003.
(b)  The directors shall be elected by the members and any other person authorized by the exchange's constitution and bylaws to vote in an election of directors.
(c)  At least two-thirds of the directors must be citizens of the United States.
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 2204 - Texas Insurance Exchange › Subchapter C. Finances › Section 2204.101. Taxes

Sec. 2204.101.  TAXES.  (a)  Except as provided by this section and Chapters 251 and 261, the exchange is not subject to state or local taxes that are measured by income, premiums, or gross receipts.
(b)  A direct premium written, procured, or received by a member through the exchange on a risk located in this state is:
(1)  considered written, procured, or received by the exchange; and
(2)  subject to the premium taxes imposed under Subtitle B, Title 3.
(c)  Premium taxes shall be reported, paid, and administered as provided by Subtitle B, Title 3.
(d)  The exchange and the members are considered insurers for purposes of:
(1)  Sections 201.052, 201.053, and 201.054;
(2)  Chapters 4, 202, 203, 221, 222, 224, 227, 228, 251, 257, and 1109; and
(3)  Section 171.0525, Tax Code.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2H.007, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2204 - Texas Insurance Exchange › Subchapter C. Finances › Section 2204.102. Investments in Member or Agent

Sec. 2204.102.  INVESTMENTS IN MEMBER OR AGENT.  (a)  The commissioner by rule may establish limitations on investments in a member.
(b)  An investment, directly or indirectly, in a member by an agent transacting business on the exchange or in an agent transacting business on the exchange by a member is limited in the aggregate to:
(1)  less than 20 percent of the total investment in the member or agent; or
(2)  a lesser amount provided by a rule adopted by 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 2204 - Texas Insurance Exchange › Subchapter C. Finances › Section 2204.103. Coverage by Guaranty Funds

Sec. 2204.103.  COVERAGE BY GUARANTY FUNDS.  (a)  The performance of a contractual obligation of the exchange or a member entered into under this chapter is not covered by an insurance guaranty fund provided by the laws of this state.
(b)  This section does not apply to the security fund established under Section 2204.053(b)(4).
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter A. General Provisions › Section 2205.001. Definitions

Sec. 2205.001.  DEFINITIONS.  In this chapter:
(1)  "Board" means the board of trustees of the pool.
(2)  "Child-care facility" has the meaning assigned by Section 42.002, Human Resources Code.
(3)  "Fund" means the Texas child-care facility liability fund.
(4)  "Pool" means the Texas Child-Care Facility Liability Pool.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter A. General Provisions › Section 2205.002. Pool Not Engaged in Business of Insurance

Sec. 2205.002.  POOL NOT ENGAGED IN BUSINESS OF INSURANCE.  (a)  Except as provided by this section and Section 2205.003(b), the pool is not engaged in the business of insurance under this code or other state law, and this code and other state insurance laws do not apply to the pool.
(b)  The pool is subject to:
(1)  this chapter;
(2)  the requirements of this code or commissioner rules relating to reporting liability claims information; and
(3)  the requirements of Chapter 2251 and Article 5.13-2 relating to making, filing, and approving rates.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter A. General Provisions › Section 2205.003. Department and Commissioner Supervision

Sec. 2205.003.  DEPARTMENT AND COMMISSIONER SUPERVISION.  (a)  The pool is subject to the department's continuing supervision relating to the pool's solvency.
(b)  The commissioner may set minimum requirements to ensure the capability of the pool to satisfy the pool's obligations.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter B. Creation of Pool › Section 2205.051. Creation of Pool

Sec. 2205.051.  CREATION OF POOL.  (a)  The Texas Child-Care Facility Liability Pool is created when the governing bodies of 10 or more child-care facilities agree in writing to participate in the pool.
(b)  The pool provides liability insurance coverage for child-care facilities as provided by 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 2205 - Texas Child-Care Facility Liability Pool › Subchapter B. Creation of Pool › Section 2205.052. Participation in Pool

Sec. 2205.052.  PARTICIPATION IN POOL.  A child-care facility is entitled to coverage from the pool if the facility:
(1)  submits a complete application;
(2)  provides other information required by the pool;
(3)  meets the underwriting standards established by the pool; and
(4)  pays the premiums required for the coverage.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter B. Creation of Pool › Section 2205.053. Selection of Temporary Board

Sec. 2205.053.  SELECTION OF TEMPORARY BOARD.  At the time the governing bodies of the child-care facilities enter into the written agreement under Section 2205.051, the governing bodies shall select nine individuals to:
(1)  serve as the temporary board; and
(2)  draft the plan of operation for the pool.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter C. Plan of Operation › Section 2205.101. Time for Creation of Plan of Operation

Sec. 2205.101.  TIME FOR CREATION OF PLAN OF OPERATION.  (a)  Not later than the 30th day after the date the last member of the temporary board is selected, the temporary board shall meet to prepare a plan of operation for the pool.
(b)  The temporary board shall complete and adopt the plan of operation not later than the 90th day after the date the last member of the temporary board is selected.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter C. Plan of Operation › Section 2205.102. Contents of Plan of Operation

Sec. 2205.102.  CONTENTS OF PLAN OF OPERATION.  (a)  Subject to the requirements of this chapter, the plan of operation must include:
(1)  the organizational structure of the pool, including:
(A)  the method of selecting the board;
(B)  the board's methods of procedure and operation; and
(C)  a summary of the methods for managing and operating the pool;
(2)  a description of the contributions and other financial arrangements necessary to cover the initial expenses of the pool and estimates, supported by statistical information, of the amounts of those contributions or other financial arrangements;
(3)  underwriting standards and procedures for evaluating risks;
(4)  a requirement that each participant in the pool receive continuing training in the methods of controlling liability losses;
(5)  procedures for purchasing reinsurance;
(6)  procedures and guidelines for:
(A)  establishing premium rates for and maximum limits of excess liability coverage available from the pool;
(B)  negotiating and paying settlements, defending claims, and paying judgments; and
(C)  managing and investing the fund;
(7)  procedures for:
(A)  processing and paying claims; and
(B)  defraying losses or expenses of the pool;
(8)  guidelines for nonrenewal of coverage;
(9)  the minimum capital and surplus to be maintained by the pool;  and
(10)  the minimum standards for reserve requirements for the pool.
(b)  The plan of operation may include any matter relating to the organization and operation of the pool or to the pool's finances.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter C. Plan of Operation › Section 2205.103. Approval of Plan of Operation

Sec. 2205.103.  APPROVAL OF PLAN OF OPERATION.  (a)  On completion of the plan of operation, the temporary board shall submit the plan to the department for examination, suggested changes, and final approval.
(b)  The department shall approve the plan of operation on the determination that the pool is able and will continue to be able to pay valid claims made against the pool.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter D. Board of Trustees › Section 2205.151. Governance of Pool

Sec. 2205.151.  GOVERNANCE OF POOL.  (a)  The pool is governed by a board of trustees composed of nine members selected as provided by the plan of operation.
(b)  Not later than the 15th day after the date the department approves the plan of operation, the initial regular board must be selected as provided by the plan of operation.  The members of the initial regular board shall take office not later than the 30th day after the date the plan of operation is adopted.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter D. Board of Trustees › Section 2205.152. Terms; Vacancy

Sec. 2205.152.  TERMS; VACANCY.  (a)  Board members serve two-year terms.  The terms expire as provided by the plan of operation.
(b)  A vacancy on the board shall be filled as provided by the plan of operation.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter D. Board of Trustees › Section 2205.153. Performance Bond Required

Sec. 2205.153.  PERFORMANCE BOND REQUIRED.  (a)  Each board member shall execute a bond in the amount required by the plan of operation.  The bond must be payable to the pool and conditioned on the faithful performance of the member's duties.
(b)  The pool shall pay the cost of the bond executed under this section.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter D. Board of Trustees › Section 2205.154. Compensation

Sec. 2205.154.  COMPENSATION.  A board member is not entitled to compensation for the member's service on the board.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter D. Board of Trustees › Section 2205.155. Officers; Meetings

Sec. 2205.155.  OFFICERS; MEETINGS.  (a)  The board shall elect from the board's membership a presiding officer and other officers as provided by the plan of operation.
(b)  Each officer serves a one-year term that expires as provided by the plan of operation.
(c)  The board shall meet at the call of the presiding officer and at times established by the board's rules.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter D. Board of Trustees › Section 2205.156. General Powers and Duties of Board

Sec. 2205.156.  GENERAL POWERS AND DUTIES OF BOARD.  (a)  The board shall:
(1)  approve contracts, other than liability insurance contracts issued by the pool to child-care facilities; and
(2)  adopt premium rate schedules and policy forms for the pool.
(b)  The board may:
(1)  adopt rules as necessary for the operation of the pool;
(2)  delegate specific responsibilities to the pool manager; and
(3)  with the department's approval, amend the plan of operation as necessary to ensure the orderly management and operation of the pool.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter D. Board of Trustees › Section 2205.157. Immunity of Board Members From Certain Liabilities

Sec. 2205.157.  IMMUNITY OF BOARD MEMBERS FROM CERTAIN LIABILITIES.  A board member is not liable:
(1)  with respect to a claim or judgment for which coverage is provided by the pool; or
(2)  for a claim or judgment against a child-care facility covered by the pool.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter E. Operation of Pool › Section 2205.201. General Powers and Duties of Pool

Sec. 2205.201.  GENERAL POWERS AND DUTIES OF POOL.  (a)  The pool shall:
(1)  issue primary and excess liability coverage to each child-care facility entitled to coverage under this chapter;
(2)  collect premiums for coverage issued or renewed by the pool;
(3)  process and pay valid claims;
(4)  maintain detailed information regarding the pool; and
(5)  establish a plan to conduct loss control training or contract with an outside entity to establish continuing training and inspections programs designed to reduce the potential liability losses of pool participants.
(b)  The pool may:
(1)  enter into contracts;
(2)  purchase reinsurance;
(3)  cancel or refuse to renew coverage; and
(4)  perform any other act necessary to implement this chapter, the plan of operation, or a rule adopted by the board.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter E. Operation of Pool › Section 2205.202. Pool Manager; Performance Bond Required

Sec. 2205.202.  POOL MANAGER; PERFORMANCE BOND REQUIRED.  (a)  The board shall appoint a pool manager who serves at the pleasure of the board, and the board shall supervise the pool manager's activities.
(b)  The pool manager shall execute a bond in the amount determined by the board.  The bond must be payable to the pool and conditioned on the faithful performance of the pool manager's duties.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter E. Operation of Pool › Section 2205.203. General Powers and Duties of Pool Manager

Sec. 2205.203.  GENERAL POWERS AND DUTIES OF POOL MANAGER.  (a)  The pool manager shall direct the general operation of the pool and perform other duties as directed by the board.
(b)  The pool manager shall:
(1)  receive and approve applications for liability coverage from the pool;
(2)  negotiate contracts for the pool; and
(3)  prepare proposed policy forms for board approval.
(c)  The pool manager may refuse to renew the coverage of a child-care facility insured by the pool that fails to meet the guidelines included in the plan of operation.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter E. Operation of Pool › Section 2205.204. Personnel

Sec. 2205.204.  PERSONNEL.  (a)  The pool manager may employ or contract with persons as necessary to assist the board and the pool manager in implementing the powers and duties of the pool.
(b)  The board must approve:
(1)  the compensation paid to a pool employee; and
(2)  a contract made with a person under this section.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter E. Operation of Pool › Section 2205.205. Performance Bond Authorized

Sec. 2205.205.  PERFORMANCE BOND AUTHORIZED.  The board may require an employee or a person with whom the pool manager contracts under Section 2205.204 to execute a bond in an amount determined by the board.  The bond must be payable to the board and conditioned on the faithful performance of the employee's or other person's duties to the pool.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter E. Operation of Pool › Section 2205.206. Immunity of Employees and Contractors From Certain Liabilities

Sec. 2205.206.  IMMUNITY OF EMPLOYEES AND CONTRACTORS FROM CERTAIN LIABILITIES.  An employee or a person with whom the pool manager contracts under Section 2205.204 is not liable with respect to a claim or judgment against a child-care facility covered by the pool.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter E. Operation of Pool › Section 2205.207. Office; Records

Sec. 2205.207.  OFFICE; RECORDS.  (a)  The pool shall maintain the pool's principal office in Austin, Texas.
(b)  Records and other information relating to the operation of the pool must be maintained in the pool's principal office.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter E. Operation of Pool › Section 2205.208. Annual Audit

Sec. 2205.208.  ANNUAL AUDIT.  The board shall require an annual audit of the pool's capital, surplus, and reserves.  The audit must be conducted by an actuary who is a member of the American Academy of Actuaries or a similar national organization of actuaries recognized by the board.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter F. Texas Child-Care Facility Liability Fund › Section 2205.251. Fund Creation; Management

Sec. 2205.251.  FUND CREATION; MANAGEMENT.  (a)  The Texas child-care facility liability fund is established on the creation of the pool.
(b)  The fund is composed of:
(1)  premiums paid by child-care facilities for coverage provided by the pool;
(2)  contributions and other money received by the pool to cover the initial expenses of the fund;
(3)  investments of the fund and money earned from those investments; and
(4)  any other money received by the pool.
(c)  The pool manager, under the general supervision of the board, shall manage and invest the money in the fund in the manner provided by the plan of operation.
(d)  Money earned by the investment of money in the fund must be deposited in the fund or reinvested for the fund.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter F. Texas Child-Care Facility Liability Fund › Section 2205.252. Contributions

Sec. 2205.252.  CONTRIBUTIONS.  The board shall determine the amount of contributions necessary to meet the initial expenses of the pool.  The board shall make this determination based on the information provided by the plan of operation.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter F. Texas Child-Care Facility Liability Fund › Section 2205.253. Uses of Fund

Sec. 2205.253.  USES OF FUND.  (a)  Administrative expenses of the pool may be paid from the fund.  Payments for administrative expenses during a fiscal year may not exceed 10 percent of the total amount of the money in the fund during that fiscal year.
(b)  Money in the fund may not be used to pay:
(1)  punitive damages; or
(2)  a fine or penalty imposed for a violation of:
(A)  a statute;
(B)  a rule of a state agency; or
(C)  an ordinance or order of a local government.
(c)  A claim or judgment may be paid from the fund under excess liability insurance coverage only if all benefits payable under any other underlying liability insurance policy covering that claim or judgment are exhausted.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter F. Texas Child-Care Facility Liability Fund › Section 2205.254. Depository Bank

Sec. 2205.254.  DEPOSITORY BANK.  (a)  The board may select one or more banks to serve as a depository for the fund.
(b)  A depository bank must provide security before money in the fund may be deposited in the bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation.  The security must be in an amount sufficient to secure the excess amount of the deposit.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter G. Pool Coverage › Section 2205.301. Scope of Coverage

Sec. 2205.301.  SCOPE OF COVERAGE.  (a)  The pool shall insure a child-care facility and the facility's officers and employees against liability for acts and omissions under the laws of this state by the officers and employees in their official or employment capacities.
(b)  The pool shall provide to a child-care facility that qualifies under this chapter and the plan of operation:
(1)  primary liability insurance coverage in an amount not to exceed $300,000; and
(2)  excess liability insurance coverage in an amount that the board determines is actuarially sound.
(c)  The pool may participate in evaluating, settling, and defending a claim against a child-care facility insured by the pool.
(d)  The pool is liable in an amount not to exceed the limit of coverage provided to a child-care facility on a claim made against the facility.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter G. Pool Coverage › Section 2205.302. Basis of Coverage

Sec. 2205.302.  BASIS OF COVERAGE.  The pool may provide liability insurance coverage on a claims-made basis or an occurrence 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 2205 - Texas Child-Care Facility Liability Pool › Subchapter G. Pool Coverage › Section 2205.303. Rates and Limits of Coverage

Sec. 2205.303.  RATES AND LIMITS OF COVERAGE.  (a)  To ensure that the pool is actuarially sound, the board shall:
(1)  set the premium rates charged; and
(2)  determine the maximum limits of coverage provided.
(b)  The pool manager, for the board's consideration, shall:
(1)  collect and compile statistical information relating to the liability coverage provided by the pool, including relevant loss, expense, and premium information, and other necessary information;
(2)  prepare the proposed premium rate schedules for the approval of the board; and
(3)  prepare the maximum limits of coverage.
(c)  The board shall periodically reexamine the rate schedules and the maximum limits of coverage.
(d)  The pool manager shall make available to the public the information described by Subsection (b)(1).
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter G. Pool Coverage › Section 2205.304. Coverage Period

Sec. 2205.304.  COVERAGE PERIOD.  A child-care facility that accepts coverage provided by the pool shall maintain that coverage for at least 24 consecutive months following the date the pool issued the coverage.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter G. Pool Coverage › Section 2205.305. Nonrenewal of Coverage

Sec. 2205.305.  NONRENEWAL OF COVERAGE.  (a)  Except as provided by Subsection (b), the pool may refuse to renew the coverage of a child-care facility that fails to comply with the pool's underwriting standards.
(b)  The pool may not refuse to renew the coverage of a child-care facility during the first 24 months following the date the facility is first provided coverage by the pool if the facility maintains the underwriting standards established by the plan of operation.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter G. Pool Coverage › Section 2205.306. Subsequent Coverage

Sec. 2205.306.  SUBSEQUENT COVERAGE.  A child-care facility that voluntarily discontinues coverage provided by the pool is not eligible to subsequently obtain coverage from the pool for at least 12 months following the date the coverage is discontinued.
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 2205 - Texas Child-Care Facility Liability Pool › Subchapter G. Pool Coverage › Section 2205.307. Payment of Claims and Judgments

Sec. 2205.307.  PAYMENT OF CLAIMS AND JUDGMENTS.  (a)  If money in the fund would be exhausted by the payment of all final and settled claims and final judgments during a fiscal year, the pool shall prorate the amount paid to each person having the claim or judgment.
(b)  If the amount paid by the pool is prorated under this section, each person described by Subsection (a) shall receive an amount equal to the percentage that the amount owed to that person by the pool bears to the total amount owed, outstanding, and payable by the pool.
(c)  The pool shall pay in the next fiscal year the remaining amount that is due and unpaid to a person who receives a prorated payment under this section.
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 2206 - Risk Management Pools for Certain Educational Entities › Subchapter A. General Provisions › Section 2206.001. Definitions

Sec. 2206.001.  DEFINITIONS.  In this chapter:
(1)  "Board" means the board of trustees of a pool.
(2)  "Fund" means a risk management fund.
(3)  "Junior college district" means a junior college district created under the laws of this state.
(4)  "Pool" means a risk management pool created under this chapter.
(5)  "School district" means a public school district created under the laws of this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.