Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter C - TEXAS MEDICAL LIABILITY INSURANCE UNDERWRITING ASSOCIATION › Section 5.2002 - Operation of the Texas Medical Liability Insurance Underwriting Association

Current through Reg. 49, No. 28; July 12, 2024
(a) Membership. The
				  association is governed by Insurance Code Chapter 2203. Any insurer authorized
				  to write and engaged in writing any insurance, the writing of which requires
				  the insurer to become a member of the association under Insurance Code §
										2203.055, will become
				  a member of the association on the first day of January immediately following
				  the date the insurer started writing such insurance. The determination of the
				  insurer's participation in the association will be made as of the date of such
				  membership in the same manner as for all members of the association. Any member
				  that ceases to be authorized to write or that ceases to engage in the writing
				  of any insurance that would require such insurer to become a member of the
				  association will remain a member of the association until midnight of December
				  31 next following the date the insurer ceases to be authorized to write or
				  ceases to write such insurance, and the insurer's participation in the
				  association will cease as of that time; provided, however, that each member
				  must participate in any financial deficit of the association for all calendar
				  years subsequent to December 31, 1976, during which the insurer was a member of
				  the association, whenever such deficit is determined. The member must be
				  charged or credited in due course with its proper share of all expenses or
				  losses and any recoupment or reimbursement allocable to the member. If a member
				  is merged or consolidated with another insurer, the continuing insurer will
				  become a member of the association in place of the merged or consolidated
				  member, provided that such member will be deemed to have become a member of the
				  association on the date the merged or consolidated member became a member and
				  provided, further, that such member will pay no initial expense fee.
(b) Expense fees.
(1) Initial expense fee. Each member must pay
				  to the association an initial expense fee of $100. All members of the
				  association must pay such fees on or before the date they become members of the
				  association.
(2) Annual expense
				  fee. In addition to the initial expense fee, each member must pay to the
				  association an annual expense fee in an amount to be determined by the board of
				  directors and approved by the Commissioner. All members of the association must
				  pay such annual expense fee on or before the first of January for each year
				  during which the association exists.
(3) Remedy for failure to pay fees. If any
				  member fails or refuses to pay either the initial expense fee or the annual
				  expense fee after receipt of written notice by the association that such fee is
				  due and payable, then such member will be subject to the same remedies as
				  provided in §
											5.2003(d)(4)
				  of this title (relating to Property and Casualty Insurance) for the failure of
				  the member to pay any assessment levied by the association.
(4) Use of fees. All expense fees paid to the
				  association will be used in such manner as the board of directors may from time
				  to time direct in accordance with this subchapter.