reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter G. Foreign Lloyd's Plan › Section 941.302. Bond of Foreign Lloyd's Plan

Sec. 941.302.  BOND OF FOREIGN LLOYD'S PLAN.  (a)  A bond filed under Section 941.301 must:
(1)  be executed by corporate sureties that:
(A)  meet the requirements imposed by the department;  and
(B)  are authorized to engage in guaranty, fidelity, and surety business in this state;
(2)  be in a principal amount that equals the minimum amount of net assets of a Lloyd's plan under this subchapter;
(3)  be payable to the department;
(4)  be conditioned for the payment of all claims arising under insurance policies or contracts:
(A)  issued in this state;
(B)  issued to residents of this state;  or
(C)  covering property located in this state;  and
(5)  be held by the department for the benefit of any person with a valid claim arising under an insurance policy or contract described by Subdivision (4).
(b)  The bond must also provide that if a Lloyd's plan with outstanding insurance policies in favor of residents of this state or covering property located in this state becomes insolvent or ceases to engage in the business of insurance in this state, the department, after 10 days' notice to the attorney in fact for the Lloyd's plan or any receiver in charge of the Lloyd's plan's property and affairs, may contract with another insurer engaging in the business of insurance in this state for the assumption of and reinsurance by that insurer of:
(1)  all of the Lloyd's plan's insurance risks outstanding in this state;  and
(2)  all unsatisfied lawful claims outstanding against the Lloyd's plan.
(c)  If the department enters into a contract described by Subsection (b) and the attorney general approves the contract as reasonable, the assuming insurer is entitled to recover from the makers of the bond filed under Section 941.301 the amount of the premium or compensation for reinsurance that is specified in the contract.
(d)  A bond filed under Section 941.301 binds any additional or substitute underwriters of the Lloyd's plan.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter H. Conversion to Capital Stock Insurance Company › Section 941.351. Conversion Authorized

Sec. 941.351.  CONVERSION AUTHORIZED.  The underwriters may convert a Lloyd's plan to a capital stock insurance company governed by Chapter 822 by complying with this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter H. Conversion to Capital Stock Insurance Company › Section 941.352. Adoption of Conversion Plan

Sec. 941.352.  ADOPTION OF CONVERSION PLAN.  The underwriters by a two-thirds vote may adopt a plan to convert the Lloyd's plan to a capital stock insurance company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter H. Conversion to Capital Stock Insurance Company › Section 941.353. Requirements of Conversion Plan

Sec. 941.353.  REQUIREMENTS OF CONVERSION PLAN.  The conversion plan must provide that a capital stock insurance company will be formed in accordance with Chapter 822, except that:
(1)  the company's required minimum capital and surplus must equal the required minimum guaranty fund and surplus of the Lloyd's plan;
(2)  the company's assets may be in cash or in the form of an investment lawfully held by the Lloyd's plan;  and
(3)  an original examination under Section 822.058(b) is not required unless directed by the commissioner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter H. Conversion to Capital Stock Insurance Company › Section 941.354. Commissioner Approval of Conversion Plan

Sec. 941.354.  COMMISSIONER APPROVAL OF CONVERSION PLAN.  On the commissioner's approval of the conversion plan and the formation of the capital stock insurance company, all assets, interests, obligations, and liabilities of the Lloyd's plan, including all outstanding policies and insurance obligations, are transferred to the capital stock insurance company, except as otherwise provided by this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter H. Conversion to Capital Stock Insurance Company › Section 941.355. Conversion of Member of Holding Company System

Sec. 941.355.  CONVERSION OF MEMBER OF HOLDING COMPANY SYSTEM.  If the Lloyd's plan is a member of a holding company system identified in registration information that the Lloyd's plan filed with the department in accordance with Chapter 823, the rights and interests of the underwriters in the capital stock insurance company may be assigned at the time of conversion to any affiliated person in that holding company system.  An assignment under this subsection is not:
(1)  a change in control for the purposes of Section 822.212;  or
(2)  an acquisition of control for the purposes of Chapter 823.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter O. Penalties › Section 941.701. Revocation of Certificate of Authority

Sec. 941.701.  REVOCATION OF CERTIFICATE OF AUTHORITY.  The commissioner shall revoke a certificate of authority issued to an attorney in fact if the attorney in fact or an underwriter violates this chapter or any other law of this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 941 - Lloyd's Plan › Subchapter O. Penalties › Section 941.702. Criminal Penalty

Sec. 941.702.  CRIMINAL PENALTY.  (a)  A person commits an offense if the person, as a principal, attorney in fact, agent, broker, or other representative, engages in the business of writing insurance on the Lloyd's plan in violation of this chapter.
(b)  An offense under this section is punishable by a fine of not more than $500.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter A. General Provisions › Section 942.001. Definitions

Sec. 942.001.  DEFINITIONS.  In this chapter:
(1)  "Attorney in fact" means an individual, firm, or corporation who, under a power of attorney or other appropriate authorization of the attorney in fact, acts for subscribers of an exchange by issuing reciprocal or interinsurance contracts.
(2)  "Exchange" means a reciprocal or interinsurance exchange and includes the office through which a reciprocal or interinsurance contract is exchanged.
(3)  "Reciprocal or interinsurance contract" means an insurance policy or other contract that provides indemnity among a group of subscribers for certain losses.
(4)  "Subscriber" means an individual, partnership, or corporation who, through an attorney in fact, enters into a reciprocal or interinsurance contract.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter A. General Provisions › Section 942.002. Subscriber Insurance Coverage Through Exchange Authorized; Life Insurance Prohibited

Sec. 942.002.  SUBSCRIBER INSURANCE COVERAGE THROUGH EXCHANGE AUTHORIZED;  LIFE INSURANCE PROHIBITED.  (a)  Except as provided by Subsection (c), subscribers of this state may exchange reciprocal or interinsurance contracts with other subscribers of this state or of another state or country to provide indemnity among those subscribers for a loss for which insurance coverage may be obtained under other law.
(b)  A public, private, or municipal corporation organized under the laws of this state may act as a subscriber, and the right to exchange a reciprocal or interinsurance contract is:
(1)  incidental to the purpose for which the corporation is organized;  and
(2)  in addition to the corporate rights and powers expressly conferred in the corporation's articles of incorporation.
(c)  An exchange may not engage in the business of life insurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter A. General Provisions › Section 942.003. Limited Exemption From Insurance Laws; Applicability of Certain Laws

Sec. 942.003.  LIMITED EXEMPTION FROM INSURANCE LAWS;  APPLICABILITY OF CERTAIN LAWS.  (a)  An exchange is exempt from the operation of all insurance laws of this state except as specifically provided in this chapter or unless exchanges are specifically mentioned in the other law.
(b)  An exchange is subject to:
(1)  Subchapter A, Chapter 5, Chapter 254, Subchapters A and B, Chapter 1806, and Subtitle C, Title 10;
(2) Articles 5.35, 5.39, and 5.40;
(3) Article 5.13-2, as provided by that article, Chapter 2251, as provided by that chapter, and Chapter 2301, as provided by that chapter;
(4)  Chapters 402, 541, and 2253;
(5)  Subchapter A, Chapter 401, and Sections 401.051, 401.052, 401.054, 401.055, 401.056, 401.057, 401.058, 401.059, 401.060, 401.061, 401.062, 401.151, 401.152, 401.155, and 401.156;
(6)  Subchapter B, Chapter 404;
(7)  Subchapter C, Chapter 1806; and
(8)  Sections 38.001, 501.159, 822.203, 822.205, 822.210, 822.212, 861.254(a)-(f), 861.255, 862.001(b), 862.003, 2002.002, 2002.005, 2002.051, and 2002.052.
(c)  Chapter 2007 applies to rates for motor vehicle insurance written by an exchange.
(d)  The provisions of the Texas Business Corporation Act that relate to the indemnification of officers and directors apply to an exchange.
(e)  Subscribers and their attorney in fact are subject to Sections 822.051, 822.057-822.060, and 822.201, except that:
(1)  the declaration of the subscribers prescribed by Section 942.053 replaces the articles of incorporation;  and
(2)  the unencumbered surplus of the exchange constitutes capital structure for purposes of Section 822.060.
(f)  An exchange is subject to Chapter 2210, as provided by that chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 206, Sec. 21.44(a), (b), eff. June 11, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 631 (H.B. 2565), Sec. 6, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch. 1295 (H.B. 2614), Sec. 3, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.119, eff. April 1, 2009.
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.027, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.027, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 43, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter B. Formation and Structure of Exchange › Section 942.051. Appointment of Attorney in Fact; Approval by Department of Power of Attorney or Other Authorization Required

Sec. 942.051.  APPOINTMENT OF ATTORNEY IN FACT;  APPROVAL BY DEPARTMENT OF POWER OF ATTORNEY OR OTHER AUTHORIZATION REQUIRED.  (a)  A reciprocal or interinsurance contract may be executed by an attorney in fact appointed by the subscribers of an exchange.
(b)  A corporation may be organized in this state to act as attorney in fact for an exchange.  The general laws regarding incorporation supplement this chapter to the extent consistent with this chapter.  A corporation organized in this state to act as attorney in fact for an exchange may be organized under the Texas Business Corporation Act, notwithstanding any conflicting provision of that Act.
(c)  The form of the power of attorney or other document granting authority to the attorney in fact and under which the insurance is to be exchanged is subject to approval by the department.  This subsection may not be construed to permit the department to require the filing or use of uniform forms of those documents except as otherwise provided by this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter B. Formation and Structure of Exchange › Section 942.052. Security Requirements

Sec. 942.052.  SECURITY REQUIREMENTS.  (a)  Except as provided by Subsection (d), to act as an attorney in fact, an individual, firm, or corporation must execute a good and sufficient fidelity bond that obligates the principal and surety to pay a pecuniary loss of money or property, not exceeding the amount of the bond, that is sustained by the exchange through fraud, dishonesty, forgery, theft, embezzlement, wrongful abstraction, or wilful misapplication on the part of the attorney in fact, directly or through connivance with others.
(b)  The bond must:
(1)  be acceptable to the department;
(2)  be payable to the subscribers or the department;  and
(3)  be in the amount of:
(A)  $25,000 for an individual or firm;  or
(B)  $50,000 for a corporation.
(c)  If the conditions of the bond are violated, the insurance supervisory authority of any state in which the attorney in fact is authorized to engage in the business of the exchange may bring an action to enforce the bond on behalf of the subscribers.
(d)  Instead of a bond, an attorney in fact may deposit with the appropriate official of the exchange's state of domicile cash or securities of the kind in which a general casualty company is authorized to invest its funds.  The deposit must be made in the same amount, and must be conditioned, approved, and payable in the same manner, as a bond required under this section.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter B. Formation and Structure of Exchange › Section 942.053. Subscriber Declaration

Sec. 942.053.  SUBSCRIBER DECLARATION.  (a)  On entering into a reciprocal or interinsurance contract, the subscribers, through the attorney in fact, shall file with the department a declaration verified by the oath of the attorney in fact.
(b)  The declaration must include:
(1)  the name of the proposed exchange;
(2)  the kinds of insurance to be provided under the reciprocal or interinsurance contract;
(3)  a copy of the form of the power of attorney or other authorization of the attorney in fact under which the insurance is to be provided;
(4)  the location of each office from which the reciprocal or interinsurance contracts are to be issued;  and
(5)  any other information prescribed by the department, including an affidavit comparable to the affidavit prescribed by Section 822.057(a)(3).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter B. Formation and Structure of Exchange › Section 942.054. Name of Exchange

Sec. 942.054.  NAME OF EXCHANGE.  (a)  The name of an exchange must contain the term "reciprocal," "inter-insurance exchange," "underwriters," "association," "exchange," "underwriting," "inter-insurers," or "inter-insurors."
(b)  The name selected for an exchange may not be so similar to the name of a similar organization or an insurer that, in the opinion of the department, the name is calculated to confuse or deceive.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter B. Formation and Structure of Exchange › Section 942.055. Office Locations

Sec. 942.055.  OFFICE LOCATIONS.  The attorney in fact shall maintain the offices of the exchange at the places designated by the subscribers in the power of attorney or other authorization.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter C. Authority to Engage in Business › Section 942.101. Certificate of Authority Required; Effect on Foreign Corporations

Sec. 942.101.  CERTIFICATE OF AUTHORITY REQUIRED;  EFFECT ON FOREIGN CORPORATIONS.  (a)  An attorney in fact must hold a certificate of authority issued by the department under Sections 801.001, 801.002, 801.051-801.055, 801.057, 801.101, and 801.102.  A certificate of authority obtained in accordance with this section authorizes the attorney in fact named in the certificate to exercise all powers and perform all duties of an attorney in fact.
(b)  A corporation required to obtain a certificate of authority from the department under this section is not considered to be engaging in business in this state within the meaning of any law applying to foreign corporations.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter D. Operation, Powers, and Duties of Exchange › Section 942.151. Subscriber Liability for Certain Contingent Premiums

Sec. 942.151.  SUBSCRIBER LIABILITY FOR CERTAIN CONTINGENT PREMIUMS.  (a)  Except as provided by Section 942.152 and Subsection (b), if a certificate of authority is issued as provided by Subchapter C, the power of attorney or other authorization executed by the subscribers must provide that, in addition to the premium or premium deposit specified in the reciprocal or interinsurance contract, the subscribers are liable for a contingent premium equal to one additional annual premium or premium deposit.
(b)  If the subscribers and their attorney in fact are authorized to issue reciprocal or interinsurance contracts for cash premiums only, the power of attorney or other authorization may waive all contingent premiums.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter D. Operation, Powers, and Duties of Exchange › Section 942.152. Subscriber Limited Liability Based on Certain Minimum Capital and Surplus

Sec. 942.152.  SUBSCRIBER LIMITED LIABILITY BASED ON CERTAIN MINIMUM CAPITAL AND SURPLUS.  If the unencumbered surplus of an exchange is at least equal to the minimum capital stock and minimum surplus required of a stock insurance company engaged in the same kinds of business, the subscribers of the exchange may provide by agreement that the premium or premium deposit specified in the reciprocal or interinsurance contract constitutes the entire liability of the subscribers through the exchange.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter D. Operation, Powers, and Duties of Exchange › Section 942.153. Prior Authority Not Affected

Sec. 942.153.  PRIOR AUTHORITY NOT AFFECTED.  This chapter does not affect any authority that existed before September 6, 1955, that allowed the subscribers of an exchange and their attorney in fact to write non-assessable policies in this state, subject to any prerequisite imposed by law on that authority.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter D. Operation, Powers, and Duties of Exchange › Section 942.154. Statements Relating to Indemnity Amounts

Sec. 942.154.  STATEMENTS RELATING TO INDEMNITY AMOUNTS.  (a)  The attorney in fact for an exchange shall file with the department a sworn statement that shows the maximum amount of indemnity on any single risk.
(b)  The attorney in fact for an exchange shall, as required by the department, file with the department a sworn statement that:
(1)  the attorney has examined the commercial rating of each subscriber, as established by the reference book of a commercial agency with at least 100,000 subscribers;  and
(2)  based on the examination or other information in the attorney's possession, it appears that no subscriber has assumed on any single risk an amount greater than 10 percent of that subscriber's net worth.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter D. Operation, Powers, and Duties of Exchange › Section 942.155. Financial Requirements

Sec. 942.155.  FINANCIAL REQUIREMENTS.  (a)  An exchange shall maintain at all times an unencumbered surplus over and above all liabilities that is at least equal to the minimum capital stock and surplus required of a stock insurance company engaged in the same kinds of business.
(b)  An exchange shall maintain at all times the reserves required by the laws of this state or by rules adopted by the commissioner to be maintained by stock insurance companies engaged in the same kinds of business.
(c)  An exchange shall maintain the required assets as to:
(1)  minimum surplus requirements, as provided by Section 822.204; and
(2)  other funds, as provided by the provisions of Subchapter B, Chapter 424, other than Sections 424.052, 424.072, and 424.073.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.120, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter D. Operation, Powers, and Duties of Exchange › Section 942.156. Issuance of Fidelity and Surety Bond Insurance; Deposit Required

Sec. 942.156.  ISSUANCE OF FIDELITY AND SURETY BOND INSURANCE; DEPOSIT REQUIRED.  (a)  If a domestic exchange writes fidelity or surety bond insurance in this state, the exchange shall keep on deposit with the comptroller money, bonds, or other securities in an amount of not less than $50,000.  The department shall approve for the deposit securities described by the provisions of Subchapter B, Chapter 424, other than Sections 424.052, 424.072, and 424.073, and the exchange shall maintain the approved securities intact at all times.
(b)  A foreign exchange that writes fidelity or surety bond insurance in this state shall file with the department evidence satisfactory to the department that the exchange has, for the protection of its subscribers, at least $100,000 in money, bonds, or other securities as described by the provisions of Subchapter B, Chapter 424, other than Sections 424.052, 424.072, and 424.073, on deposit with the comptroller or other appropriate official of its state of domicile or in escrow under that official's supervision and control in a reliable bank or trust company.  If those bonds or other securities are not acceptable to and approved by the department, the department may deny the attorney in fact for the exchange a certificate of authority.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.121, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter D. Operation, Powers, and Duties of Exchange › Section 942.157. Transactions Between Certain Insurers and Affiliated Exchanges

Sec. 942.157.  TRANSACTIONS BETWEEN CERTAIN INSURERS AND AFFILIATED EXCHANGES.  (a)  In this section, "affiliate" has the meaning assigned by Section 823.003.
(b)  An insurer subject to Article 5.26 may not directly or indirectly assume all or a substantial part of any risk covered by a reciprocal or interinsurance contract written by an exchange that is an affiliate of that insurer if the risk is written at a rate less than the rate that may be lawfully charged by the insurer or any affiliate of the insurer that is subject to Article 5.26.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter D. Operation, Powers, and Duties of Exchange › Section 942.158. Advances of Money by Attorney in Fact

Sec. 942.158.  ADVANCES OF MONEY BY ATTORNEY IN FACT.  (a)  The attorney in fact for an exchange may advance to the exchange any amount of money necessary to conduct the business of the exchange, including any amount necessary to enable the exchange to comply with a legal requirement.
(b)  Subject to the approval of the department, the advanced amount and any agreed interest on that amount, not exceeding 10 percent a year:
(1)  is payable only from the surplus of the exchange remaining after providing for all reserves, other liabilities, and required surplus;  and
(2)  may not otherwise be a liability or claim against the exchange or any of the exchange's assets.
(c)  A commission, promotion expense, or other bonus may not be paid in connection with the advance of money to the exchange.
(d)  The amount of each advance must be reported in the exchange's annual report.
(e)  The department may not arbitrarily refuse approval under Subsection (b).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter D. Operation, Powers, and Duties of Exchange › Section 942.159. Violation by Attorney in Fact of Requirements Regarding Indemnity Contracts; Criminal Penalty

Sec. 942.159.  VIOLATION BY ATTORNEY IN FACT OF REQUIREMENTS REGARDING INDEMNITY CONTRACTS;  CRIMINAL PENALTY.  (a)  An attorney in fact commits an offense if the attorney in fact:
(1)  exchanges a reciprocal or interinsurance contract without first complying with the law governing the contract;  or
(2)  directly or indirectly solicits or negotiates an application for the contract without first complying with the law governing the contract.
(b)  Subsection (a) does not apply to an action taken by an attorney in fact for the purpose of applying for a certificate of authority from the commissioner as provided by this chapter.
(c)  An offense under this section is punishable by a fine of not less than $100 or more than $1,000.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter E. Regulation of Exchanges › Section 942.201. Annual Report

Sec. 942.201.  ANNUAL REPORT.  (a)  Not later than March 1 of each year, the attorney in fact for an exchange shall submit to the commissioner a report covering the previous year ending December 31.
(b)  The report must:
(1)  demonstrate that the financial condition of affairs at the exchange is in accordance with the financial requirements of this chapter under Section 942.155;  and
(2)  provide any additional information and reports as required to show:
(A)  the total amount of premiums or deposits collected;
(B)  the total amount of losses paid;
(C)  the total amounts returned to subscribers;  and
(D)  the amounts retained for expenses.
(c)  The attorney in fact is not required to provide in the report the name and address of any subscriber.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter E. Regulation of Exchanges › Section 942.202. Examination by Department

Sec. 942.202.  EXAMINATION BY DEPARTMENT.  The business affairs and assets of an exchange, as shown at the office of the attorney in fact, are subject to examination by the department.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges › Chapter 942 - Reciprocal and Interinsurance Exchanges › Subchapter E. Regulation of Exchanges › Section 942.203. Fees; Taxes; Filing Fee

Sec. 942.203.  FEES;  TAXES;  FILING FEE.  (a)  To the extent applicable, the schedule of fees established under Chapter 202 applies to an exchange and the exchange's attorney in fact.
(b)  An exchange is subject to:
(1)  Chapters 221 and 222; and
(2)  Chapters 251-255.
(c)  The comptroller shall collect the taxes and the filing fee for the annual report.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.122, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter A. General Provisions › Section 961.001. Definitions

Sec. 961.001.  DEFINITIONS.  In this chapter:
(1)  "Applicant" means a person applying for a contract for legal services to be performed through a nonprofit legal services corporation.
(2)  "Benefit certificate" means a document issued to a participant that states the benefits and other required matters under a group contract for legal services or an individual contract for legal services issued to a participant.
(3)  "Contracting attorney" means an attorney who has entered into a contract under Section 961.301.
(4)  "Nonprofit legal services corporation" means a corporation created for the sole purpose of establishing, maintaining, and operating a nonprofit legal services plan under which the corporation contracts for and obtains legal services for participants through contracting attorneys in consideration of each participant's payment of a definite amount to fund the payment of the contracting attorneys' fees.
(5)  "Participant" means a person entitled to performance of legal services under contract with a nonprofit legal services corporation.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter A. General Provisions › Section 961.002. Applicability of Other Laws

Sec. 961.002.  APPLICABILITY OF OTHER LAWS.    (a)  The Texas Nonprofit Corporation Law as described by Section 1.008, Business Organizations Code, applies to a nonprofit legal services corporation to the extent provided by this chapter.
(b)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 17(2), eff. September 1, 2019.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.123, eff. April 1, 2009.
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 2, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 17(2), eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter A. General Provisions › Section 961.003. Corporation Not Subject to Department Regulation

Sec. 961.003.  CORPORATION NOT SUBJECT TO DEPARTMENT REGULATION.  A nonprofit legal services corporation is not subject to regulation by the department.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 3, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter A. General Provisions › Section 961.004. Corporation Not Engaged in Business of Insurance

Sec. 961.004.  CORPORATION NOT ENGAGED IN BUSINESS OF INSURANCE.  A nonprofit legal services corporation is not engaged in the business of insurance and is not subject to laws relating to insurers.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 4, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter B. Formation and Structure of Nonprofit Legal Services Corporations › Section 961.051. Filing of Certificate of Formation; Nonprofit Status Required

Sec. 961.051.  FILING OF CERTIFICATE OF FORMATION; NONPROFIT STATUS REQUIRED.  (a)  Seven or more persons may file with the secretary of state a certificate of formation in accordance with Title 1, Business Organizations Code, to form a nonprofit legal services corporation.
(a-1)  Notwithstanding Subsection (a), a nonprofit legal services corporation that on or before September 1, 2019, was organized under the former Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) or was formed under the Texas Nonprofit Corporation Law, as described by Section 1.008, Business Organizations Code, is a nonprofit legal services corporation for purposes of this chapter.
(b)  A nonprofit legal services corporation must be governed and operated as a nonprofit organization.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 5, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 6, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter D. Officers › Section 961.152. Financial Officer

Sec. 961.152.  FINANCIAL OFFICER.   A nonprofit legal services corporation, by resolution entered in its minutes, shall designate one or more officers to be responsible for handling the corporation's funds.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 8, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter E. Operation of Nonprofit Legal Services Corporations › Section 961.206. Advance to Corporation

Sec. 961.206.  ADVANCE TO CORPORATION.  Any person may advance to a nonprofit legal services corporation, on a contingent liability basis, money necessary for the purposes of the corporation's business or to comply with this chapter.  The advance may be made in an amount and at a rate of interest agreed to by the person and the corporation.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 10, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter E. Operation of Nonprofit Legal Services Corporations › Section 961.207. Participation Agreements

Sec. 961.207.  PARTICIPATION AGREEMENTS.  A nonprofit legal services corporation may:
(1)  contract with another nonprofit legal services corporation or an insurer authorized to engage in business in this state for joint participation through:
(A)  a mutualization contract agreement; or
(B)  a guaranty treaty; and
(2)  cede or accept a legal services obligation from such a corporation or insurer on all or part of a legal services obligation.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 11, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter E. Operation of Nonprofit Legal Services Corporations › Section 961.211. Books and Records

Sec. 961.211.  BOOKS AND RECORDS.  (a)  A nonprofit legal services corporation shall keep complete books and records of all money collected and disbursed.
(b)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 17(6), eff. September 1, 2019.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 17(6), eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter F. Benefits Provided by Nonprofit Legal Services Corporations › Section 961.251. Applicants; Benefit Certificate

Sec. 961.251.  APPLICANTS;  BENEFIT CERTIFICATE.  (a)  A nonprofit legal services corporation may accept applicants and shall issue a benefit certificate to each applicant that becomes a participant under a legal services contract.  Before issuance of the certificate, the applicant must pay the application fee, which does not apply as part of the cost of receiving benefits under the certificate.
(b)  On issuance of the benefit certificate, the participant is entitled to the legal services stated in the certificate for the period provided by the certificate.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter F. Benefits Provided by Nonprofit Legal Services Corporations › Section 961.253. Types of Legal Services Contracts

Sec. 961.253.  TYPES OF LEGAL SERVICES CONTRACTS.  A nonprofit legal services corporation may issue legal services contracts on an individual, group, or franchise basis.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter F. Benefits Provided by Nonprofit Legal Services Corporations › Section 961.254. Indemnity Contracts

Sec. 961.254.  INDEMNITY CONTRACTS.  (a)  A nonprofit legal services corporation may issue a contract for legal services providing for indemnity for costs of services of an attorney who is not a contracting attorney.
(b)  A contract under Subsection (a) may be issued without the guarantee provided by Section 961.302(1).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 12, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter F. Benefits Provided by Nonprofit Legal Services Corporations › Section 961.255. Limitations on Benefits

Sec. 961.255.  LIMITATIONS ON BENEFITS.  A contract for legal services and a benefit certificate issued by a nonprofit legal services corporation may limit:
(1)  the types and extent of benefits;  and
(2)  the circumstances under which legal services are provided.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter F. Benefits Provided by Nonprofit Legal Services Corporations › Section 961.256. Claims

Sec. 961.256.  CLAIMS.  (a)  A nonprofit legal services corporation shall pay a lawful claim for payment under a benefit certificate not later than the 120th day after the date of receipt of due proof of claim.
(b)  Written notice of a claim given to the corporation is considered due proof of claim under this section if the corporation does not provide to the claimant before the 16th day after the date notice is received the forms usually provided by the corporation for filing a claim.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter G. Contracts With Attorneys › Section 961.301. Contracts With Attorneys

Sec. 961.301.  CONTRACTS WITH ATTORNEYS.   A nonprofit legal services corporation may contract with qualified attorneys to ensure to each participant legal services performed by the attorneys under the contract for legal services between the corporation and the participant.  A contracting attorney must be licensed to practice law in the jurisdiction in which legal services are to be provided.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 13, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter G. Contracts With Attorneys › Section 961.302. Agreement of Contracting Attorneys

Sec. 961.302.  AGREEMENT OF CONTRACTING ATTORNEYS.  The contracting attorneys shall:
(1)  guarantee to the participants the services stated under the participants' benefit certificates, except as provided by Section 961.254;  and
(2)  agree to perform without cost to the participants, other than the money of the nonprofit legal services corporation held for the participants' benefit under the corporation's plan of operation, services described by the benefit certificates.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter G. Contracts With Attorneys › Section 961.303. Limitations on Corporation's Relationship With Attorneys and Participants

Sec. 961.303.  LIMITATIONS ON CORPORATION'S RELATIONSHIP WITH ATTORNEYS AND PARTICIPANTS.  (a)  A nonprofit legal services corporation may not:
(1)  contract to practice law;  or
(2)  control or attempt to control the relationship existing between a participant and the participant's attorney.
(b)  The corporation may act only as an agent on behalf of its participants for legal services and, except as provided by Section 961.254, those services may be provided only by and through contracting attorneys.  A contracting attorney must be an independent contractor maintaining a direct lawyer and client relationship with a participant and may not be an employee of the corporation.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter G. Contracts With Attorneys › Section 961.305. Attorney Insurance Required

Sec. 961.305.  ATTORNEY INSURANCE REQUIRED.  (a)  Each contracting attorney shall maintain professional liability and errors and omissions insurance as required by the nonprofit legal services corporation with which the attorney contracts.
(b)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 17(8), eff. September 1, 2019.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 643 (S.B. 1623), Sec. 17(8), eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle H - Other Entities › Chapter 961 - Nonprofit Legal Services Corporations › Subchapter G. Contracts With Attorneys › Section 961.306. Payment Only for Services Provided

Sec. 961.306.  PAYMENT ONLY FOR SERVICES PROVIDED.  A nonprofit legal services corporation may not pay any of the claim funds collected from participants to an attorney except for legal services that the attorney provided to participants.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.