reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.006. Net Direct Written Premiums

Sec. 462.006.  NET DIRECT WRITTEN PREMIUMS.  (a)  Except as provided by Subsection (b) and subject to Subsection (c), in this chapter, "net direct written premiums" means direct premiums written in this state on insurance policies to which this chapter applies, less return premiums on those policies and dividends paid or credited to policyholders on that direct business.
(b)  Subject to Subsection (c), for assessing the workers' compensation line of business, the term "net direct written premiums" includes the modified annual premium before the application of a deductible premium credit, less return premiums on those policies and dividends paid or credited to policyholders on that direct business.
(c)  The term "net direct written premiums" does not include premiums on contracts between insurers or reinsurers.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.007. Applicability in General; Exceptions

Sec. 462.007.  APPLICABILITY IN GENERAL; EXCEPTIONS.  (a)  Except as provided by Subsection (b), this chapter applies to each kind of direct insurance.
(b)  Except as provided by Subchapter F, this chapter does not apply to:
(1)  life, annuity, health, or disability insurance;
(2)  mortgage guaranty, financial guaranty, or other kinds of insurance offering protection against investment risks;
(3)  a fidelity or surety bond, or any other bonding obligation;
(4)  credit insurance, vendors' single-interest insurance, collateral protection insurance, or similar insurance protecting a creditor's interest arising out of a creditor-debtor transaction;
(5)  insurance of warranties or service contracts;
(6)  title insurance;
(7)  ocean marine insurance;
(8)  a transaction or combination of transactions between a person, including an affiliate of the person, and an insurer, including an affiliate of the insurer, that involves the transfer of investment or credit risk unaccompanied by the transfer of insurance risk, including transactions, except for workers' compensation insurance, involving captive insurers, policies in which deductible or self-insured retention is substantially equal in amount to the limit of the liability under the policy, and transactions in which the insured retains a substantial portion of the risk; or
(9)  insurance provided by or guaranteed by government.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.005(a), eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.005(a), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.008. Applicability to Texas Mutual Insurance Company

Sec. 462.008.  APPLICABILITY TO TEXAS MUTUAL INSURANCE COMPANY.  (a)  This chapter applies to insurance written through the Texas Mutual Insurance Company only as provided by this section.
(b)  This chapter applies to the Texas Mutual Insurance Company on a prospective basis on and after January 1, 2000.  The Texas Mutual Insurance Company is only liable for assessments for a claim with a date of injury that occurs on or after January 1, 2000.  The association, with respect to an insolvency of the Texas Mutual Insurance Company, is only liable for a claim with a date of injury that occurs on or after January 1, 2000.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.009. Applicability to Former Texas Workers' Compensation Insurance Facility and Successor

Sec. 462.009.  APPLICABILITY TO FORMER TEXAS WORKERS' COMPENSATION INSURANCE FACILITY AND SUCCESSOR.  (a)  Notwithstanding any other provision of this chapter, this chapter applies to each insurance policy issued under Article 5.76 or 5.76-2, as those articles existed before their repeal.
(b)  Notwithstanding any other provision of this chapter, the stock insurance company that resulted from the transfer of the former Texas workers' compensation insurance facility is considered an impaired insurer for purposes of this chapter if any action described by Section 462.004(5) is taken with respect to the company.
(c)  A claim under an insurance policy described by Subsection (a) is a covered claim for purposes of this chapter if the claim is a covered claim for purposes of Sections 462.201-462.203, 462.205-462.210, 462.213, 462.214, and 462.305 without regard to whether the stock insurance company described by Subsection (b):
(1)  issued or assumed the policy; or
(2)  was authorized to engage in business in this state at the time:
(A)  the policy was written; or
(B)  the company became an impaired insurer.
(d)  If a conflict exists between this section and any other statute relating to the former Texas workers' compensation insurance facility or the association, this section controls.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.010. Conflict With Other Laws

Sec. 462.010.  CONFLICT WITH OTHER LAWS.  (a)  Except as provided by Subsection (b), if this chapter  conflicts with another statute relating to the association, this chapter controls.
(b)  This section does not apply to a conflict between this chapter and:
(1)  Subtitle A, Title 5, Labor Code, except as described by Subsection (c); or
(2)  Subtitle E, Title 10.
(c)  This chapter controls with respect to subrogation rights of an insurance carrier under Chapter 417, Labor Code, against an impaired insurer's insured or the association.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.011. Immunity in General

Sec. 462.011.  IMMUNITY IN GENERAL.  (a)  Liability does not exist and a cause of action does not arise against any of the following persons for any good faith act or omission in performing the person's powers and duties under this chapter:
(1)  the commissioner or the commissioner's representative;
(2)  the association or the association's agent or employee;
(3)  a member insurer;
(4)  the board;
(5)  the receiver; or
(6)  a special deputy receiver or the special deputy receiver's agent or employee.
(b)  The attorney general shall defend any action to which this section applies that is brought against the commissioner or the commissioner's representative, the association or the association's agent or employee, a member insurer or the insurer's agent or employee, a board member, or a special deputy receiver or the special deputy receiver's agent or employee, including an action instituted after the defendant's service with the association, commissioner, or department has terminated.  This subsection does not require the attorney general to defend a person with respect to an issue other than the applicability or effect of the immunity created by Subsection (a).  The attorney general is not required to defend the association or the association's agent or employee, a member insurer or the member insurer's agent or employee, a board member, or a special deputy receiver or the special deputy receiver's agent or employee against an action regarding the disposition of a claim filed with the association under this chapter or any issue other than the applicability or effect of the immunity created by Subsection (a). The association may contract with the attorney general under Chapter 771, Government Code, for legal services not covered by this subsection.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.012. Immunity in Relation to Certain Reports and Recommendations

Sec. 462.012.  IMMUNITY IN RELATION TO CERTAIN REPORTS AND RECOMMENDATIONS.  Liability does not exist and a cause of action does not arise against any of the following persons for a statement made in good faith by the person in a report or recommendation made under Section 462.111 or 462.113:
(1)  the commissioner or the commissioner's representative;
(2)  the association or the association's agent or employee;
(3)  a member insurer;  or
(4)  the board.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.013. Immunity in Relation to Certain Negotiations

Sec. 462.013.  IMMUNITY IN RELATION TO CERTAIN NEGOTIATIONS.  (a)  Liability does not exist and a cause of action does not arise against any of the following persons for an act or omission in the performance of an activity related to the negotiations relating to the privatization of the former Texas workers' compensation facility:
(1)  the commissioner or the commissioner's representative;
(2)  the association or the association's agent or employee;
(3)  a member insurer; or
(4)  a board member.
(b)  This section applies to each activity undertaken by a person described by Subsection (a), regardless of the date of the act or omission.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.014. Rules

Sec. 462.014.  RULES.  The commissioner shall adopt reasonable rules as necessary to implement and supplement this chapter and this chapter's purposes.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.015. Information Provided by or to Commissioner

Sec. 462.015.  INFORMATION PROVIDED BY OR TO COMMISSIONER.  (a)  The commissioner shall notify the association of the existence of an impaired insurer not later than the third day after the date the commissioner gives notice of the designation of impairment.  The association is entitled to a copy of any complaint seeking an order of receivership with a finding of insolvency against a member insurer at the time the complaint is filed with a court.
(b)  On the board's request, the commissioner shall provide the association with a statement of the net direct written premiums of each member insurer.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.016. Penalty for Failure to Pay Assessments or Comply With Plan of Operation

Sec. 462.016.  PENALTY FOR FAILURE TO PAY ASSESSMENTS OR COMPLY WITH PLAN OF OPERATION.  (a)  The commissioner shall suspend or revoke, after notice and hearing, the certificate of authority to engage in the business of insurance in this state of a member insurer that:
(1)  fails to pay an assessment at the time the assessment is due; or
(2)  otherwise fails to comply with the plan of operation.
(b)  As an alternative to action under Subsection (a), the commissioner may assess a fine on a member insurer that fails to pay an assessment at the time the assessment is due.  The fine may not exceed the lesser of:
(1)  five percent of the unpaid assessment per month; or
(2)  $100 per month.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.017. Appeals and Other Actions

Sec. 462.017.  APPEALS AND OTHER ACTIONS.  (a)  A final action or order of the commissioner under this chapter is subject to judicial review by a court.
(b)  Venue in a suit by or against the commissioner or association relating to an action or ruling of the commissioner or association under this chapter is in Travis County.  The commissioner or association is not required to give an appeal bond in an appeal of a cause of action arising under this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.008(a), eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.008(a), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter B. Governance of Association › Section 462.051. Association as Legal Entity; Membership

Sec. 462.051.  ASSOCIATION AS LEGAL ENTITY; MEMBERSHIP.  (a)  The Texas Property and Casualty Insurance Guaranty Association is a nonprofit unincorporated legal entity.
(b)  The association is composed of all member insurers. A member insurer must remain a member of the association as a condition of engaging in the business of insurance in this state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter B. Governance of Association › Section 462.052. Board of Directors

Sec. 462.052.  BOARD OF DIRECTORS.  (a)  The association's powers are exercised through a board of directors consisting of nine individuals.
(b)  Member insurers shall select five insurance industry board members, subject to the approval of the commissioner.  In approving selections to the board, the commissioner shall consider whether all member insurers are fairly represented.
(c)  Four board members must be public representatives appointed by the commissioner.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter B. Governance of Association › Section 462.053. Eligibility to Serve as Public Representative

Sec. 462.053.  ELIGIBILITY TO SERVE AS PUBLIC REPRESENTATIVE.  A board member who is a public representative may not be:
(1)  an officer, director, or employee of an insurer, insurance agency, agent, broker, adjuster, or any other business entity regulated by the department;
(2)  a person required to register with the Texas Ethics Commission under Chapter 305, Government Code, in connection with the person's representation of clients in the field of insurance; or
(3)  related to a person described by Subdivision (1) or (2) within the second degree of affinity or consanguinity.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter B. Governance of Association › Section 462.054. Eligibility to Serve as Industry Representative

Sec. 462.054.  ELIGIBILITY TO SERVE AS INDUSTRY REPRESENTATIVE.  To be eligible to serve as an insurance industry board member, an individual must be a full-time employee of a member insurer.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter B. Governance of Association › Section 462.055. Term; Vacancy

Sec. 462.055.  TERM; VACANCY.  (a)  A board member serves a term established by the plan of operation.
(b)  The remaining board members, by majority vote, shall fill a vacancy on the board for the unexpired term of a director who serves as an insurance industry board member, subject to the commissioner's approval.  The commissioner shall appoint a director to fill a vacancy on the board for the unexpired term of a director who serves as a public representative.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 343 (S.B. 1063), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter B. Governance of Association › Section 462.056. Reimbursement of Board Members

Sec. 462.056.  REIMBURSEMENT OF BOARD MEMBERS.  A board member may be reimbursed from the assets of the association for expenses the board member incurs as a board member.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter B. Governance of Association › Section 462.057. Financial Statement of Board Member

Sec. 462.057.  FINANCIAL STATEMENT OF BOARD MEMBER.  Each board member shall file with the Texas Ethics Commission a financial statement as provided by Subchapter B, Chapter 572, Government Code.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter B. Governance of Association › Section 462.058. Conflict of Interest

Sec. 462.058.  CONFLICT OF INTEREST.  (a)  A director of the association or a member insurer or other entity represented by the director may not receive money or another valuable thing directly, indirectly, or through any substantial interest in any other corporation, firm, or business unit for negotiating, procuring, participating in, recommending, or aiding in a reinsurance agreement, merger, or other transaction, including the purchase, sale, or exchange of assets, insurance policies, or property made by the association or the supervisor, conservator, or receiver on behalf of an impaired insurer.
(b)  The director, member insurer, or entity may not be pecuniarily or contractually interested, as principal, coprincipal, agent, or beneficiary, directly, indirectly, or through any substantial interest in any other corporation, firm, or business unit, in the reinsurance agreement, merger, purchase, sale, exchange, or other transaction.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter B. Governance of Association › Section 462.059. Meeting by Conference Call

Sec. 462.059.  MEETING BY CONFERENCE CALL.  (a)  Notwithstanding Chapter 551, Government Code, the board may hold an open meeting by telephone conference call.  A meeting held by telephone conference call:
(1)  must be audible to the public at the location specified in the notice described by Subsection (c); and
(2)  must allow two-way audio communication during the entire meeting between the members of the board attending a meeting authorized by this section.
(a-1)  If the two-way audio communication required under Subsection (a) is disrupted during a meeting so that a quorum of the board is no longer able to participate, the meeting may not continue until the two-way audio communication is reestablished.
(b)  The meeting is subject to the notice requirements that apply to other meetings of the board of directors.
(c)  The notice of the meeting must specify the location of the meeting, and each part of the meeting that is required to be open to the public must be audible to the public at that location.  The association must make an audio recording of the meeting.  The recording of the open portion of the meeting must be posted publicly to the association's Internet website.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 343 (S.B. 1063), Sec. 3, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.101. General Powers and Duties

Sec. 462.101.  GENERAL POWERS AND DUTIES.  (a)  The association may:
(1)  employ or retain persons as necessary to handle claims and perform other duties of the association;
(2)  borrow money necessary to implement this chapter in accordance with the plan of operation;
(3)  sue or be sued;
(4)  negotiate and enter into a contract as necessary to implement this chapter; and
(5)  perform other acts as necessary or proper to implement this chapter.
(b)  A contract authorized by Subsection (a)(4) includes a lump-sum or structured compromise and settlement agreement with a claimant who has a claim for medical or indemnity benefits for a period of three years or more, other than a settlement or lump-sum payment in violation of Subtitle A, Title 5, Labor Code.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.102. Association Not in Place of Impaired Insurer

Sec. 462.102.  ASSOCIATION NOT IN PLACE OF IMPAIRED INSURER.  In performing the association's statutory obligations under this chapter, the association is not considered:
(1)  to be engaged in the business of insurance;
(2)  to have assumed or succeeded to a liability of the impaired insurer; or
(3)  to otherwise stand in the place of the impaired insurer for any purpose, including for the purpose of determining whether the association is subject to personal jurisdiction of the courts of another state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.103. Plan of Operation

Sec. 462.103.  PLAN OF OPERATION.  (a)  The association shall perform the association's functions under a plan of operation necessary or suitable to ensure the fair, reasonable, and equitable administration of the association.  The plan of operation must:
(1)  be submitted to and approved in writing by the commissioner;
(2)  establish:
(A)  procedures under which the powers and duties of the association are performed;
(B)  procedures for handling assets of the association;
(C)  the amount and method of reimbursing board members;
(D)  acceptable forms of proof of covered claims;
(E)  regular places and times for board meetings;
(F)  procedures for records to be kept of each financial transaction of the association, the association's agents, and the board; and
(G)  procedures under which selections for the board are submitted to the commissioner;
(3)  provide:
(A)  for the establishment of a claims filing procedure that includes:
(i)  notice by the association to claimants;
(ii)  procedures for filing claims seeking recovery from the association; and
(iii)  a procedure for appealing the denial of claims by the association; and
(B)  that a member insurer aggrieved by a final action or decision of the association may appeal to the commissioner not later than the 30th day after the date of the action or decision; and
(4)  contain additional provisions necessary or proper for the execution of the association's powers and duties.
(b)  The association shall submit to the commissioner any amendment to the plan of operation necessary or suitable to ensure the fair, reasonable, and equitable administration of the association. The amendment takes effect on the commissioner's written approval.
(c)  If the association does not submit a suitable amendment to the plan of operation, the commissioner after notice and hearing shall adopt reasonable rules as necessary or advisable to implement this chapter.  A rule continues in effect until modified by the commissioner or superseded by an amendment submitted by the association and approved by the commissioner.
(d)  Each member insurer shall comply with the plan of operation.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.104. Notice to Insureds

Sec. 462.104.  NOTICE TO INSUREDS.  (a)  The commissioner may require that the association notify an impaired insurer's insureds and any other interested parties of:
(1)  the designation of impairment; and
(2)  the insureds' and other parties' rights under this chapter.
(b)  The association shall give notice as the commissioner directs under this section.  The association shall mail the notice to the last known address, if available. If sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation is sufficient notice.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.105. Accounts

Sec. 462.105.  ACCOUNTS.  For purposes of administration and assessment, the association is divided into:
(1)  the workers' compensation insurance account;
(2)  the automobile insurance account; and
(3)  the account for all other lines of insurance to which this chapter applies.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.106. Administrative Expenses

Sec. 462.106.  ADMINISTRATIVE EXPENSES.  (a)  The association may use money in the administrative account to pay administrative costs and other general expenses of the association.
(b)  The association may transfer income from investment of the association's money to the administrative account.
(c)  On notification by the association of the amount of any additional money needed for the administrative account, the association shall assess member insurers in the manner provided by Sections 462.159-462.168 for that money.  The commissioner shall consider the net direct written premiums collected in this state for all lines of business covered by this chapter.  An assessment for administrative expenses incurred by a supervisor or conservator appointed by the commissioner or a court-appointed receiver for a nonmember of the association or unauthorized insurer operating in this state may not exceed $1 million each calendar year.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.107. Examination of Association

Sec. 462.107.  EXAMINATION OF ASSOCIATION.  Not later than April 30 of each year, the association shall submit an audited financial statement for the preceding calendar year to the state auditor in a form approved by the state auditor's office.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.108. Deposit of Money

Sec. 462.108.  DEPOSIT OF MONEY.  The board may deposit the money the association collects into the Texas Treasury Safekeeping Trust Company in accordance with procedures established by the comptroller.  The comptroller shall account to the association for the deposited money separately from all other money.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.109. Delegation of Powers and Duties

Sec. 462.109.  DELEGATION OF POWERS AND DUTIES.  (a)  Except as provided by Subsection (b), the plan of operation may provide that, on approval of the board and the commissioner, the association may delegate by contract any or all powers or duties of the association to a corporation or other organization that:
(1)  performs or will perform in two or more states functions similar to those of the association or the association's equivalent; and
(2)  provides protection not substantially less favorable and effective than that provided by this chapter.
(b)  The association may not delegate a power or duty under Section 462.101(a)(2), 462.151, 462.154, 462.155, or 462.302(d) under this section.
(c)  The association shall:
(1)  reimburse the corporation or other organization as a servicing facility would be reimbursed; and
(2)  pay the corporation or other organization for the performance of any other functions of the association.
(d)  A contract entered into under this section is subject to the performance standards imposed under Section 442.112.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.110. Exemption From Certain Fees and Taxes

Sec. 462.110.  EXEMPTION FROM CERTAIN FEES AND TAXES.  The association is exempt from payment of all fees and of all taxes levied by this state or a subdivision of this state, except taxes levied on real or personal property.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.111. Access to Records of Member Insurer in Receivership; Actuarial and Operational Analysis

Sec. 462.111.  ACCESS TO RECORDS OF MEMBER INSURER IN RECEIVERSHIP; ACTUARIAL AND OPERATIONAL ANALYSIS.  (a)  The association shall have access to the books and records of a member insurer in receivership to determine the extent of the impact on the association if the member becomes impaired.
(b)  The association may:
(1)  perform or cause to be performed an actuarial and operational analysis of the member insurer; and
(2)  prepare a report on matters relating to the impact or potential impact on the association in the event of impairment.
(c)  A report prepared under Subsection (b) is not a public document.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.112. Board Access to Records of Impaired Insurer

Sec. 462.112.  BOARD ACCESS TO RECORDS OF IMPAIRED INSURER.  The receiver or statutory successor of an impaired insurer covered by this chapter shall give the board or the board's representative:
(1)  access to the insurer's records as necessary for the board to perform the board's functions under this chapter relating to covered claims; and
(2)  copies of those records on the board's request and at the board's expense.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.1121. Action to Obtain Information Concerning Insurer in Receivership Authorized

Sec. 462.1121.  ACTION TO OBTAIN INFORMATION CONCERNING INSURER IN RECEIVERSHIP AUTHORIZED.  (a)  The association may bring an action against any third-party administrator, agent, attorney, or other representative of an insurer for which a receiver has been appointed to obtain custody and control of all information, including files, records, and electronic data, related to the insurer that is appropriate or necessary for the association, or a similar association in other states, to carry out its duties under this chapter or a similar law of another state.  The association has the absolute right to obtain information under this section through emergency equitable relief, regardless of where the information is physically located.
(b)  In bringing an action under this section, the association is not subject to any defense, possessory lien or other type of lien, or other legal or equitable ground for refusal to surrender the information that may be asserted against the receiver of the insurer.
(c)  The association is entitled to an award of reasonable attorney's fees and costs incurred by the association in any action to obtain information under this section.
(d)  The rights granted to the association under this section do not affect the receiver's title to information, and information obtained under this section remains the property of the receiver while in the custody of the association.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.007(b), eff. September 1, 2007.
Added by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.007(b), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.113. Board Report on Conclusion of Insolvency

Sec. 462.113.  BOARD REPORT ON CONCLUSION OF INSOLVENCY.  On the conclusion of the insolvency of a domestic insurer with respect to which the association was obligated to pay covered claims, the board may:
(1)  prepare a report on the history and causes of the insolvency, based on information available to the association; and
(2)  submit the report to the commissioner.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 462.114. Duty of Receiver

Sec. 462.114.  DUTY OF RECEIVER.  The receiver shall periodically submit a list of claims to the association or similar organization in another state.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.151. Making of Assessment; Amount

Sec. 462.151.  MAKING OF ASSESSMENT; AMOUNT.  (a)  The association shall assess member insurers the amount necessary to pay:
(1)  the association's obligations under Section 462.302 and the expenses of handling covered claims subsequent to an insolvency; and
(2)  other expenses authorized by this chapter.
(b)  The assessment of each member insurer must be in the proportion that the net direct written premiums of the insurer for the calendar year preceding the assessment bear to the net direct written premiums of all member insurers for that year.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.152. Maximum Total Assessment

Sec. 462.152.  MAXIMUM TOTAL ASSESSMENT.  (a)  The total assessment of a member insurer in a year may not exceed an amount equal to two percent of the insurer's net direct written premiums for the calendar year preceding the assessment.
(b)  If the maximum assessment and the association's other assets are insufficient in a year to make all necessary payments, the money available shall be prorated and the association shall pay the unpaid portion as soon as money becomes available.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.153. Refund of Contribution

Sec. 462.153.  REFUND OF CONTRIBUTION.  The association may refund to the member insurers in proportion to the contribution of each member insurer to the association the amount by which the association's assets exceed the association's liabilities, if at the end of a calendar year the board finds that the assets of the association exceed the liabilities of the association as estimated by the board for the next year.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.154. Notice of Assessment

Sec. 462.154.  NOTICE OF ASSESSMENT.  The association shall notify a member insurer of an assessment not later than the 30th day before the date the assessment is due.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.155. Deferment

Sec. 462.155.  DEFERMENT.  (a)  The association may defer wholly or partly an assessment of a member insurer that would cause the insurer's financial statement to show amounts of capital or surplus less than the minimum amounts required for a certificate of authority in any jurisdiction in which the insurer is authorized to engage in the business of insurance.
(b)  The member insurer shall pay the deferred assessment at the time payment will not reduce capital or surplus below required minimums.  The payment shall be refunded to or credited against future assessments of any member insurer receiving a larger assessment because of the deferment, as elected by that insurer.
(c)  During a period of deferment, the member insurer may not pay a dividend to shareholders or policyholders.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.156. Use of Assessments

Sec. 462.156.  USE OF ASSESSMENTS.  (a)  The amounts provided under assessments made under this chapter supplement the marshalling of assets by the receiver under Chapter 442 to make payments on the impaired insurer's behalf.
(b)  This section does not require the receiver to exhaust the assets of the impaired insurer before an assessment is made or before money derived from an assessment may be used to pay covered claims.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.157. Tax Credit

Sec. 462.157.  TAX CREDIT.  (a)  An insurer is entitled to a credit against the insurer's premium tax under Chapter 221 for the total amount of an assessment paid by the insurer under this chapter.
(b)  The tax credit may be taken at a rate of 10 percent each year for 10 successive years after the date of assessment.  At the option of the insurer, the tax credit may be taken over an additional number of years.
(c)  The balance of a tax credit not claimed in a particular year may be reflected in the books and records of the insurer as an admitted asset of the insurer for all purposes, including exhibition in an annual statement under Section 862.001.
(d)  Available credit against premium tax allowed under this section may be transferred or assigned among insurers if:
(1)  a merger, acquisition, or total assumption of reinsurance among the insurers occurs; or
(2)  the commissioner by order approves the transfer or assignment.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.158. Advance as Loan

Sec. 462.158.  ADVANCE AS LOAN.  Money advanced by the association under this chapter is considered a special fund loan to the impaired insurer for payment of covered claims and does not become an asset of the impaired insurer.  The loan is repayable to the extent money from the impaired insurer is available.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.159. Estimate of Additional Money Needed on Impairment of Insurer

Sec. 462.159.  ESTIMATE OF ADDITIONAL MONEY NEEDED ON IMPAIRMENT OF INSURER.  (a)  If the commissioner determines that an insurer has become an impaired insurer, the association shall promptly estimate the amount of additional money, by lines of business, needed to supplement the immediately available assets of the impaired insurer to pay covered claims.
(b)  The board shall make additional money available as the actual need arises for each impaired insurer.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.160. Assessment for Additional Money for Accounts

Sec. 462.160.  ASSESSMENT FOR ADDITIONAL MONEY FOR ACCOUNTS.  If the board determines that additional money is needed in any of the three accounts described by Section 462.105, the board shall make assessments as needed to produce the necessary money.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.161. Amount of Assessment; Proration of Payment

Sec. 462.161.  AMOUNT OF ASSESSMENT; PRORATION OF PAYMENT.  (a)  The association, in determining the proportionate amount to be paid by individual insurers under an assessment under Section 462.160, shall consider the lines of business written by the impaired insurer and shall assess individual insurers in proportion to the ratio that the total net direct written premiums collected in this state by the insurer for those lines of business bears to the total net direct written premiums collected by all insurers, other than impaired insurers, in this state for those lines of business.
(b)  The association shall determine the total net direct written premiums of an individual insurer and of all insurers in the state from the insurers' annual statements for the year preceding assessment.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter D. Assessments in General › Section 462.162. Maximum Assessment of Insurer; Additional Assessment Authority Under Certain Circumstances

Sec. 462.162.  MAXIMUM ASSESSMENT OF INSURER; ADDITIONAL ASSESSMENT AUTHORITY UNDER CERTAIN CIRCUMSTANCES.  (a)  Except as otherwise provided by this section, assessments under Section 462.160 during a calendar year may not exceed two percent of each insurer's net direct written premiums for the preceding calendar year in the lines of business for which the assessments are made.
(b)  In the event of a natural disaster or other catastrophe, the association may apply to the governor, in the manner prescribed by the plan of operation, for authority to assess each member insurer that writes insurance coverage, other than automobile insurance coverage or workers' compensation insurance coverage, an additional amount not to exceed two percent of the insurer's net direct written premiums for the preceding calendar year.
(c)  If the maximum assessment in a calendar year does not provide an amount sufficient for payment of covered claims of impaired insurers, the association may make assessments in successive calendar years.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.