reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2209 - Texas Nonprofit Organizations Liability Pool › Subchapter F. Texas Nonprofit Organizations Liability Fund › Section 2209.254. Depository Bank

Sec. 2209.254.  DEPOSITORY BANK.  (a)  The board may select one or more banks to serve as a depository for money in the fund.
(b)  A depository bank must execute a bond or provide other security before the pool manager may deposit fund money in the bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation.  The bond or other 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 2209 - Texas Nonprofit Organizations Liability Pool › Subchapter G. Pool Coverage › Section 2209.301. Scope of Coverage

Sec. 2209.301.  SCOPE OF COVERAGE.  (a)  The pool shall insure a nonprofit organization and the organization's officers and employees against liability for acts and omissions under the laws of this state.
(b)  The pool shall provide to a nonprofit organization that qualifies under this chapter and the plan of operation:
(1)  primary liability insurance coverage in an amount not to exceed $250,000; and
(2)  excess liability insurance coverage in an amount that the board finds is actuarially sound.
(c)  The pool may participate in evaluating, settling, and defending a claim against a nonprofit organization insured by the pool if the claim is covered by pool coverage.
(d)  The pool is liable in an amount not to exceed the limit of coverage provided to a nonprofit organization on a claim made against the organization.
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 2209 - Texas Nonprofit Organizations Liability Pool › Subchapter G. Pool Coverage › Section 2209.302. Coverage on Claims-Made Basis

Sec. 2209.302.  COVERAGE ON CLAIMS-MADE BASIS.  The pool may provide liability insurance coverage on a claims-made basis on forms approved by the department.
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 2209 - Texas Nonprofit Organizations Liability Pool › Subchapter G. Pool Coverage › Section 2209.303. Punitive Damages Not Covered

Sec. 2209.303.  PUNITIVE DAMAGES NOT COVERED.  Liability insurance coverage provided by the pool may not include coverage for punitive damages.
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 2209 - Texas Nonprofit Organizations Liability Pool › Subchapter G. Pool Coverage › Section 2209.304. Rates and Limits of Coverage

Sec. 2209.304.  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 data relating to the liability insurance coverage provided by the pool, including relevant loss, expense, and premium data, and other 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 as conditions change.
(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 2209 - Texas Nonprofit Organizations Liability Pool › Subchapter G. Pool Coverage › Section 2209.305. Coverage Period

Sec. 2209.305.  COVERAGE PERIOD.  A nonprofit organization that accepts coverage provided by the pool shall maintain that coverage for at least 24 calendar months following the month in which 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 2209 - Texas Nonprofit Organizations Liability Pool › Subchapter G. Pool Coverage › Section 2209.306. Nonrenewal of Coverage

Sec. 2209.306.  NONRENEWAL OF COVERAGE.  (a)  Except as provided by Subsection (b), the pool may refuse to renew the coverage of a nonprofit organization that fails to comply with the pool's underwriting standards.
(b)  The pool may not refuse to renew the coverage of a nonprofit organization during the first 24 calendar months following the month in which the nonprofit organization is first provided coverage by the pool if the organization 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 2209 - Texas Nonprofit Organizations Liability Pool › Subchapter G. Pool Coverage › Section 2209.307. Subsequent Coverage

Sec. 2209.307.  SUBSEQUENT COVERAGE.  (a)  A nonprofit organization that voluntarily discontinues coverage provided by the pool may not subsequently obtain coverage from the pool for at least 12 calendar months following the month in which the organization discontinues the coverage.
(b)  A nonprofit organization whose coverage is not renewed under Section 2209.306 is not eligible to subsequently apply for coverage during the 12 calendar months following the month in which the pool gives written notice of nonrenewal.
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 2209 - Texas Nonprofit Organizations Liability Pool › Subchapter G. Pool Coverage › Section 2209.308. Payment of Claims and Judgments

Sec. 2209.308.  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 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.001. Purpose

Sec. 2210.001.  PURPOSE.  The primary purpose of the Texas Windstorm Insurance Association is the provision of an adequate market for windstorm and hail insurance in the seacoast territory of this state.  The legislature finds that the provision of adequate windstorm and hail insurance is necessary to the economic welfare of this state, and without that insurance, the orderly growth and development of this state would be severely impeded.  This chapter provides a method by which adequate windstorm and hail insurance may be obtained in certain designated portions of the seacoast territory of this state.  The association is intended to serve as a residual insurer of last resort for windstorm and hail insurance in the seacoast territory.  The association shall:
(1)  function in such a manner as to not be a direct competitor in the private market; and
(2)  provide windstorm and hail insurance coverage to those who are unable to obtain that coverage in the private market.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 5, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.002. Short Title; Sunset Provision

Sec. 2210.002.  SHORT TITLE; SUNSET PROVISION.  (a)  This chapter may be cited as the Texas Windstorm Insurance Association Act.
(b)  The association is subject to review under Chapter 325, Government Code (Texas Sunset Act), but is not abolished under that chapter.  The association shall be reviewed during the period in which state agencies abolished in 2031 are reviewed.  The association shall pay the costs incurred by the Sunset Advisory Commission in performing the review of the association under this subsection.  The Sunset Advisory Commission shall determine the costs of the review performed under this subsection, and the association shall pay the amount of those costs promptly on receipt of a statement from the Sunset Advisory Commission regarding those costs.  This subsection expires September 1, 2031.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 6, eff. June 19, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 1232 (S.B. 652), Sec. 1.04, eff. June 17, 2011.
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 3, eff. September 28, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1279 (H.B. 1675), Sec. 3.06, eff. June 14, 2013.
Acts 2019, 86th Leg., R.S., Ch. 525 (S.B. 615), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.0025. Biennial Report to Legislature

Sec. 2210.0025.  BIENNIAL REPORT TO LEGISLATURE.  On or before December 31 of each even-numbered year, the board of directors shall submit to the commissioner, the appropriate committees of each house of the legislature, and the Sunset Advisory Commission a written report relating to the operations of the association during the preceding biennium.  The report must include:
(1)  any proposed changes in the laws relating to regulation of the association and a statement of the reasons for the changes; and
(2)  any information regarding association operations or procedures that is requested by the department to be addressed in the report.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 7, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.005. Designation as Catastrophe Area; Revocation of Designation

Sec. 2210.005.  DESIGNATION AS CATASTROPHE AREA; REVOCATION OF DESIGNATION.  (a)  After at least 10 days' notice and a hearing, the commissioner may designate an area of the seacoast territory of this state as a catastrophe area if the commissioner determines, unless such a determination results in an adverse impact to the exposure of the association, that windstorm and hail insurance is not reasonably available to a substantial number of the owners of insurable property located in that territory because the territory is subject to unusually frequent and severe damage resulting from windstorms or hailstorms.
(b)   The commissioner shall revoke a designation made under Subsection (a) if the commissioner determines, after at least 10 days' notice and a hearing, that the applicable insurance coverage is no longer reasonably unavailable to a substantial number of owners of insurable property within the designated territory.
(c)  If the association determines that windstorm and hail insurance is no longer reasonably unavailable to a substantial number of owners of insurable property in a territory designated as a catastrophe area, the association may request in writing that the commissioner revoke the designation.  After at least 10 days' notice and a hearing, but not later than the 30th day after the date of the hearing, the commissioner shall:
(1)  approve the request and revoke the designation; or
(2)  reject the request.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 10, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.006. Applicability of Chapter to Certain Insurers

Sec. 2210.006.  APPLICABILITY OF CHAPTER TO CERTAIN INSURERS.  (a)  Except as provided by Subsection (b), this chapter applies to each insurer authorized to engage in the business of property insurance in this state, including a county mutual insurance company, a Lloyd's plan, and a reciprocal or interinsurance exchange.
(b)  This chapter does not apply to:
(1)  a farm mutual insurance company operating under Chapter 911, unless the company is acting as a fronting insurer, as defined by Section 221.001(c);
(2)  a nonaffiliated county mutual fire insurance company described by Section 912.310 that is writing exclusively industrial fire insurance policies as described by Section 912.310(a)(2); or
(3)  a mutual insurance company or a statewide mutual assessment company engaged in business under Chapter 12 or 13, Title 78, Revised Statutes, respectively, before those chapters' repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st Called Session, 1929, as amended by Section 1, Chapter 60, General Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that retains the rights and privileges under the repealed law to the extent provided by those sections.
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. 3B.063(a), eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.063(a), eff. September 1, 2007.
Acts 2017, 85th Leg., R.S., Ch. 1083 (H.B. 3496), Sec. 4, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.007. Immunity From Liability in General

Sec. 2210.007.  IMMUNITY FROM LIABILITY IN GENERAL.  (a)  This section applies to:
(1)  the association and a director, agent, or association staff;
(2)  the commissioner, the department, and department staff; and
(3)  a participating insurer and the insurer's agents and staff.
(b)  A person described by Subsection (a) is not liable, and a cause of action does not arise against the person, for:
(1)  an inspection made under the plan of operation; or
(2)  any statement made in good faith by the person:
(A)  in a report or communication concerning risks submitted to the association; or
(B)  at any administrative hearing conducted under this chapter in connection with the inspection or statement.
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 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.008. Department Orders; General Rulemaking Authority

Sec. 2210.008.  DEPARTMENT ORDERS; GENERAL RULEMAKING AUTHORITY.  (a)  The commissioner may issue any orders that the commissioner considers necessary to implement this chapter.
(b)  The commissioner may adopt rules in the manner prescribed by Subchapter A, Chapter 36, as reasonable and necessary to implement this chapter.
(c)  In rules adopted under this chapter, the commissioner shall define the meaning of "alter" and "alteration" for purposes of this chapter, specifically as used in Subchapters E and F.
(d)  The association may propose a rule for adoption by the commissioner.  Except as provided by this section, the association's proposal is governed by Subchapter B, Chapter 2001, Government Code.  The association is an interested person under that subchapter for purposes of a proceeding initiated under this section.
(e)  Notwithstanding Section 2001.021(c), Government Code, not later than the 30th day after the date the commissioner receives a proposed rule from the association, the commissioner shall initiate a rulemaking proceeding under Subchapter B, Chapter 2001, Government Code.
(f)  The association may request a public hearing under Section 2001.029, Government Code, in connection with a rule proposed under this section.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 11, eff. June 19, 2009.
Acts 2019, 86th Leg., R.S., Ch. 525 (S.B. 615), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.0081. Certain Actions Brought Against Association by Commissioner

Sec. 2210.0081.  CERTAIN ACTIONS BROUGHT AGAINST ASSOCIATION BY COMMISSIONER.  In an action brought by the commissioner against the association under Chapter 441:
(1)  the association's inability to satisfy obligations under Subchapter M related to the issuance of public securities under this chapter constitutes a condition that makes the association's continuation in business hazardous to the public or to the association's policyholders for the purposes of Section 441.052;
(2)  the time for the association to comply with the requirements of supervision or for the conservator to complete the conservator's duties, as applicable, is limited to three years from the date the commissioner commences the action against the association; and
(3)  unless the commissioner takes further action against the association under Chapter 441, as a condition of release from supervision, the association must demonstrate to the satisfaction of the commissioner that the association is able to satisfy obligations under Subchapter M related to the issuance of public securities under this chapter.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 5, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.009. List of Private Insurers; Incentive Plan

Sec. 2210.009.  LIST OF PRIVATE INSURERS; INCENTIVE PLAN.  (a)  The department shall maintain a list of all insurers that engage in the business of property and casualty insurance in the voluntary market in the seacoast territory.
(b)  The department shall develop incentive programs in the manner described by Section 2210.053(b) to encourage authorized insurers to write insurance on a voluntary basis and to minimize the use of the association as a means to obtain insurance.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 12, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.010. Certain Conduct in Dispute Resolution Prohibited

Sec. 2210.010.  CERTAIN CONDUCT IN DISPUTE RESOLUTION PROHIBITED.  (a)  For purposes of this section, "presiding officer" includes a judge, mediator, arbitrator, appraiser, or panel member.
(b)  If a person insured under this chapter is assigned to act as presiding officer to preside over or resolve a dispute involving the association and another person insured under this chapter, the presiding officer shall, not later than the seventh day after the date of assignment, give written notice to the association and to each other party to the dispute, or the association's or other party's attorney, that the presiding officer is insured under this chapter.
(c)  In a proceeding with respect to which the commissioner has authority to designate the presiding officer, the association or other party that receives notice under Subsection (b) may file with the commissioner a written objection to the assignment of the presiding officer to the dispute.  The written objection must contain the factual basis on which the association or other party objects to the assignment.
(d)  The commissioner shall assign a different presiding officer to the dispute if, after reviewing the objection filed under Subsection (c), the commissioner determines that the presiding officer originally assigned to the dispute has a direct financial or personal interest in the outcome of the dispute.
(e)  The association or another party must file an objection under Subsection (c) not later than the earlier of:
(1)  the seventh day after the date the association or other party receives actual notice that the presiding officer is insured under this chapter; or
(2)  the seventh day before the date of the first proceeding concerning the dispute.
(f)  The commissioner may, on a showing of good cause, extend the deadline to file an objection under Subsection (e).
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 5, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.012. Standards of Conduct: Board of Directors and Employees; Report of Certain Fraudulent Conduct

Sec. 2210.012.  STANDARDS OF CONDUCT: BOARD OF DIRECTORS AND EMPLOYEES; REPORT OF CERTAIN FRAUDULENT CONDUCT.  (a)  A member of the board of directors or an employee of the association may not:
(1)  accept or solicit any gift, favor, or service that might reasonably tend to influence the member or employee in the discharge of duties related to the operation or business of the association or that the member or employee knows or should know is being offered with the intent to influence the member's or employee's conduct related to the operation or business of the association;
(2)  accept other employment or engage in a business or professional activity that the member or employee might reasonably expect would require or induce the member or employee to disclose confidential information acquired by reason of the member's or employee's position with the association;
(3)  accept other employment or compensation that could reasonably be expected to impair the member's or employee's independence of judgment in the performance of the member's or employee's duties related to the operation or business of the association;
(4)  make personal investments that could reasonably be expected to create a substantial conflict between the member's or employee's private interest and the interest of the association; or
(5)  intentionally or knowingly solicit, accept, or agree to accept any benefit for having exercised the member's or employee's powers related to the operation or business of the association or having performed, in favor of another, the member's or employee's duties related to the operation or business of the association.
(b)  An association employee who violates Subsection (a) or a code of conduct established under Section 2210.107(a)(4) is subject to an employment-related sanction, including termination of the employee's employment with the association.
(c)  A member of the board of directors or an association employee who violates Subsection (a) is subject to any applicable civil or criminal penalty if the violation also constitutes a violation of another statute or rule.
(d)  A board member or employee of the association who reasonably suspects that a fraudulent insurance act has been or is about to be committed by any board member or employee of the association shall, not later than the 30th day after discovering the conduct, report the conduct and identity of the person engaging in the conduct to the department and may report the conduct and the identity of the person engaging in the conduct to another authorized governmental agency.  The department shall forward a report received under this subsection to the authorized governmental agency in accordance with Chapter 701.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 5, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.013. Certain Employment and Contracts Prohibited

Sec. 2210.013.  CERTAIN EMPLOYMENT AND CONTRACTS PROHIBITED.   A member of the board of directors or an employee of the association may not appoint or employ, or contract with, the following individuals for the provision of goods or services in connection with the operation or business of the association, if the individual to be appointed or employed, or with whom a contract is to be entered into, is to be directly or indirectly compensated from funds of the association:
(1)  an individual related to the member or employee within a degree of relationship described by Section 573.002, Government Code; or
(2)  an individual related to any member of the board of directors or employee of the association within a degree of relationship described by Section 573.002, Government Code.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 5, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.014. Applicability of Certain Other Law

Sec. 2210.014.  APPLICABILITY OF CERTAIN OTHER LAW.  (a)  A person may not bring a private action against the association, including a claim against an agent or representative of the association, under Chapter 541 or 542.  Notwithstanding any other provision of this code or this chapter, a class action under Subchapter F, Chapter 541, or under Rule 42, Texas Rules of Civil Procedure, may only be brought against the association by the attorney general at the request of the department.
(b)  Chapter 542 does not apply to the association or to an agent or representative of the association.
(c)  An administrator contracted under Section 2210.062, if applicable, is an agent of the association for purposes of managing the association and administering the plan of operation under this chapter.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 5, eff. September 28, 2011.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 2, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.015. Study of Market Incentives; Biennial Reporting

Sec. 2210.015.  STUDY OF MARKET INCENTIVES; BIENNIAL REPORTING.  (a)  Each biennium, the department shall conduct a study of market incentives to promote participation in the voluntary windstorm and hail insurance market in the seacoast territory of this state.  The study must address as possible incentives the mandatory or voluntary issuance of windstorm and hail insurance in conjunction with the issuance of a homeowners policy in the seacoast territory.
(b)  The department shall include the results of the study conducted under this section in the report submitted under Section 32.022.
Added by Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 3, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter A. General Provisions › Section 2210.016. Agent Requirements

Sec. 2210.016.  AGENT REQUIREMENTS.  (a)  The association may establish requirements that an agent must comply with to offer or sell a Texas windstorm and hail insurance policy under this chapter.
(b)  The association may audit an agent who offers or sells Texas windstorm and hail insurance policies under this chapter to determine the agent's compliance with requirements established under Subsection (a).  If the association finds that an agent is not in compliance with association requirements, the association may take appropriate action to limit or prohibit the agent from offering or selling a Texas windstorm and hail insurance policy under this chapter until the agent complies with those requirements.
(c)  An agent who offers or sells Texas windstorm and hail insurance policies under this chapter is not an agent of the association.
Added by Acts 2023, 88th Leg., R.S., Ch. 39 (S.B. 2232), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.051. Composition of Association; Required Membership

Sec. 2210.051.  COMPOSITION OF ASSOCIATION; REQUIRED MEMBERSHIP.  (a)  The association is composed of all property insurers authorized to engage in the business of property insurance in this state, other than insurers prevented by law from writing on a statewide basis coverages available through the association.
(b)  As a condition of the insurer's authority to engage in the business of insurance in this state, each insurer subject to Subsection (a) must be a member of the association and must remain a member for the duration of the association's existence.  An insurer that ceases to be a member of the association remains liable on insurance contracts entered into during the insurer's membership in the association to the same extent and effect as if the insurer's membership in the association had not been terminated.
(c)  An insurer that becomes authorized to write and is engaged in writing insurance that requires the insurer to be a member of the association shall become a member of the association on the January 1 following the effective date of that authorization.  The determination of the insurer's participation in the association is made as of the date of the insurer's membership in the manner used to determine participation for all other members of the association.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.052. Member Participation in Association

Sec. 2210.052.  MEMBER PARTICIPATION IN ASSOCIATION.  (a)  Each member of the association shall participate in insured losses and operating expenses of the association, in excess of premium and other revenue of the association, in the proportion that the net direct premiums of that member during the preceding calendar year bears to the aggregate net direct premiums by all members of the association, as determined using the information provided under Subsection (b).
(b)  The department shall review annual statements, other reports, and other statistics that the department considers necessary to obtain the information required under Subsection (a) and shall provide that information to the association.  The department is entitled to obtain the annual statements, other reports, and other statistics from any member of the association.
(c)  Each member's participation in the association shall be determined annually in the manner provided by the plan of operation.  For purposes of determining participation in the association, two or more members that are subject to common ownership or that operate in this state under common management or control shall be treated as a single member.  The determination shall also include the net direct premiums of an affiliate that is under that common management or control, including an affiliate that is not authorized to engage in the business of property insurance in this state.
(d)  Notwithstanding Subsection (a), a member, in accordance with the plan of operation, is entitled to receive credit for similar insurance voluntarily written in areas designated by the commissioner.  The member's participation in the insured losses and operating expenses of the association in excess of premium and other revenue of the association shall be reduced in accordance with the plan of operation.
(e)  Notwithstanding Subsections (a)-(d), an insurer that becomes a member of the association and that has not previously been a member of the association is not subject to participation in any insured losses and operating expenses of the association in excess of premium and other revenue of the association until the second anniversary of the date on which the insurer first becomes a member of the association.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 13, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.053. Operation of Association

Sec. 2210.053.  OPERATION OF ASSOCIATION.  (a)  In accordance with this chapter and the plan of operation, and with respect to insurance on insurable property, the association, on behalf of the association's members, may:
(1)  cause issuance of insurance policies to applicants for insurance coverage;
(2)  assume reinsurance from the members;
(3)  cede reinsurance to the members; and
(4)  purchase reinsurance on behalf of the members.
(b)  The department may develop programs to improve the efficient operation of the association, including a program for approving policy forms under Section 2301.010 and a program designed to create incentives for insurers to write windstorm and hail insurance voluntarily to cover property located in a catastrophe area, especially property located on the barrier islands of this state.
(c)  The association may not be considered a debtor authorized to file a petition or seek relief in bankruptcy under Title 11, United States Code.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 6, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.054. Annual Statement

Sec. 2210.054.  ANNUAL STATEMENT.  (a)  The association shall file annually with the department and the state auditor's office a statement covering periods designated by the department that summarizes the transactions, conditions, operations, and affairs of the association during the preceding year.
(b)  The statement must:
(1)  be filed at times designated by the department;
(2)  contain the information prescribed by the department; and
(3)  be in the form prescribed by the department.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 7, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.055. Legal Counsel

Sec. 2210.055.  LEGAL COUNSEL.  (a)  The association shall establish a plan in the plan of operation under which the association's legal representation before the department and the legislature is without conflict of interest or the appearance of a conflict of interest as defined by the Texas Disciplinary Rules of Professional Conduct.
(b)  The association shall adopt separate and distinct procedures for legal counsel in disputes involving policyholder claims against the association.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.056. Use of Association Assets

Sec. 2210.056.  USE OF ASSOCIATION ASSETS.  (a)  The association's net earnings may not inure, in whole or in part, to the benefit of a private shareholder or individual.
(b)  The association's assets may not be used for or diverted to any purpose other than to:
(1)  satisfy, in whole or in part, the liability of the association on claims made on policies written by the association;
(2)  make investments authorized under applicable law;
(3)  pay reasonable and necessary administrative expenses incurred in connection with the operation of the association and the processing of claims against the association;
(4)  satisfy, in whole or in part, the obligations of the association incurred in connection with Subchapters B-1, J, and M, including reinsurance, public securities, and financial instruments; or
(5)  make remittance under the laws of this state to be used by this state to:
(A)  pay claims made on policies written by the association;
(B)  purchase reinsurance covering losses under those policies; or
(C)  prepare for or mitigate the effects of catastrophic natural events.
(c)  On dissolution of the association, all assets of the association, other than assets pledged for the repayment of public securities issued under this chapter, revert to this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 14, eff. June 19, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 8, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.057. Examination of Association

Sec. 2210.057.  EXAMINATION OF ASSOCIATION.  (a)  The association is subject to Sections 401.051, 401.052, 401.054-401.062, 401.151, 401.152, 401.155, and 401.156 and Subchapter A, Chapter 86.
(b)  A final examination report of the association resulting from an examination as provided by this section is a public record and is available to the public at the offices of the department in accordance with Chapter 552, Government Code.
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 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.058. Audit of Association

Sec. 2210.058.  AUDIT OF ASSOCIATION.  (a)  The association is subject to audit by the state auditor and shall pay the costs incurred by the state auditor in performing an audit under this section.
(b)  The association shall pay the costs described by Subsection (a) promptly after receipt of a statement from the state auditor's office regarding the amount of those costs.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 9, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.059. Claims Practices Audit

Sec. 2210.059.  CLAIMS PRACTICES AUDIT.  (a)  The commissioner, in the manner and at the time the commissioner determines to be necessary, shall conduct a random audit of claim files concerning claims the bases of which are damage to insured property caused by a particular storm to:
(1)  determine whether the association is adequately and properly documenting claims decisions in each claim file; and
(2)  ensure that each claim is being handled appropriately, including being handled in accordance with the terms of the policy under which the claim is filed.
(b)  The department shall conduct an audit required under this section as soon as possible to ensure the quality of the process with which the association is handling claims described by Subsection (a).
(c)  If, following an audit conducted under this section, the commissioner determines that the association is not adequately and properly documenting claims decisions or that claims described by Subsection (a) are not otherwise being handled appropriately, the commissioner shall:
(1)  notify the board of directors of that determination; and
(2)  identify the manner in which the association should correct any deficiencies identified by the commissioner and issue an order to that effect.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 9, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.060. Indemnification by Association

Sec. 2210.060.  INDEMNIFICATION BY ASSOCIATION.  (a)  Except as provided by Subsection (b), the association shall indemnify each director, officer, and employee of the association and each member of the association against all costs and expenses actually and necessarily incurred by the person or entity in connection with the defense of an action or proceeding in which the person or entity is made a party because of the person's status as a director, officer, or employee of the association or the member's status as a member of the association.
(b)  Subsection (a) does not apply to a matter in which the person or entity is determined in the action or proceeding to be liable because of misconduct in the performance of duties as a director, officer, or employee of the association or a member of the association.
(c)  Subsection (a) does not authorize the association to indemnify a member of the association for participating in the assessments made by the association in the manner provided by this chapter.
(d)  Indemnification under this section is not exclusive of other rights to which the member or officer may be entitled as a matter of law.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 15, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.061. Contractors and Managerial Employees: Compensation and Bonuses

Sec. 2210.061.  CONTRACTORS AND MANAGERIAL EMPLOYEES: COMPENSATION AND BONUSES.  The association shall post on the association's Internet website any compensation, monetary or otherwise, and any bonus that, when aggregated, exceed $100,000 in a calendar year and that are paid or given by the association to:
(1)  a vendor or independent contractor with whom the association has a contract; or
(2)  an association employee.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 9, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. Administration of Association › Section 2210.062. Administration by Contracted Administrator Authorized

Sec. 2210.062.  ADMINISTRATION BY CONTRACTED ADMINISTRATOR AUTHORIZED.  (a)  Notwithstanding any other law, if determined by the commissioner to be in the best interest of the policyholders and the public, the commissioner may contract with an administrator to manage the association and administer the plan of operation.
(b)  The commissioner shall adopt rules as necessary to implement this section if the commissioner determines management of the association and administration of the plan of operation by an administrator is in the best interest of the policyholders and the public.
(c)  The administrator must hold either a managing general agent license issued under Chapter 4053 or a third-party administrator certificate of authority issued under Chapter 4151.
Added by Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 4, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter B. -1. Payment of Losses › Section 2210.071. Payment of Excess Losses

Sec. 2210.071.  PAYMENT OF EXCESS LOSSES.  (a) If, in a catastrophe year, an occurrence or series of occurrences in a catastrophe area results in insured losses and operating expenses of the association in excess of premium and other revenue of the association, the excess losses and operating expenses shall be paid as provided by this subchapter.
(b)  The association may not pay insured losses and operating expenses resulting from an occurrence or series of occurrences in a catastrophe year with premium and other revenue earned in a subsequent year.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 16, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 10, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 5, eff. September 1, 2015.
Acts 2019, 86th Leg., R.S., Ch. 790 (H.B. 1900), Sec. 1, eff. June 10, 2019.