reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4113 - Investments of Catastrophe Reserve Trust Fund

Current through Reg. 49, No. 28; July 12, 2024
(a) Subject to Insurance Code §
					 2210.4521, the money in the CRTF may only be invested in investments as
					 authorized by Government Code § 404.024 and § 404.106, and as
					 amended.
(b) The association does
					 not have authority to direct investments or money in the CRTF .
(c) All earnings and losses from the
					 investment of funds in the CRTF must be credited to or charged against the CRTF
					 . Investment income on money in the CRTF must be maintained as part of the
					 funds in the CRTF .
(d) CRTF funds
					 may be intermingled with other funds held by the trust company for the purposes
					 of common investment and operational efficiency.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4114 - Disbursements from the Catastrophe Reserve Trust Fund

Current through Reg. 49, No. 28; July 12, 2024
(a) Disbursements in response to a
					 catastrophic event require the following:
(1)
					 In the event that the association reasonably estimates that a catastrophic
					 event has occurred, the general manager of the association must provide the
					 Commissioner and the comptroller a definitive written statement containing the
					 total amount of the estimated catastrophic losses, potential reinsurance
					 recoveries related to those losses, and the estimated portion of the
					 catastrophic losses that exceeds the catastrophe year's premium and other
					 revenue of the association;
(2) The
					 Commissioner or an authorized representative of the department, on receiving
					 the statement described in paragraph (1) of this subsection, must have
					 determined that a catastrophic event has occurred;
(3) The Commissioner or an authorized
					 representative of the department must provide the trust company with a letter
					 of instruction to pay the association or any third-party payee an amount from
					 the CRTF that is equal to the lesser of either:
(A) the portion of the catastrophic loss that
					 exceeds the catastrophe year's premium and other revenue of the association,
					 or
(B) the balance of the CRTF;
					 and
(4) The association
					 must report to the Commissioner and the comptroller any subsequent change in
					 the amount of catastrophic losses. If the change results in an increase in the
					 amount of catastrophic losses, the association may request additional
					 disbursements under this subsection. If the change results in a decrease in the
					 amount of catastrophic losses, subsection (f) of this section
					 applies.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4121 - Financing Arrangements

Current through Reg. 49, No. 28; July 12, 2024
(a) The
					 association may enter into financing arrangements. The financing arrangement
					 must:
(1) enable the association to:
(A) pay losses under Insurance Code §
													2210.072,
					 or
(B) obtain public securities
					 under Insurance Code §
													2210.072;
					 and
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4123 - Public Securities Request, Approval, and Issuance

Current through Reg. 49, No. 28; July 12, 2024
(a) The association's board of directors must
					 request the issuance of public securities as prescribed in §
											5.4124
					 and §
											5.4125
					 of this division (relating to Issuance of Class 1 Public Securities before a
					 Catastrophic Event and Issuance of Public Securities after a Catastrophic
					 Event).
(1) The request must be submitted to
					 the commissioner for approval with all required supporting documentation
					 prescribed in §
												5.4124
					 and §
												5.4125
					 of this division.
(2) The
					 association's board of directors may request public securities as often as
					 necessary.
(3) If multiple classes
					 of public securities are combined into a single request, the request must
					 separately identify and provide supporting documentation for the issuance of
					 each class of public securities.
(4) The association's board of directors may
					 at any time submit a request for issuance of public securities to be issued
					 after a catastrophic event. If the request for the issuance of public
					 securities after a catastrophic event is submitted before a catastrophic event,
					 the association's request must specify that the requested public securities may
					 only be issued after a catastrophic event.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4124 - Issuance of Class 1 Public Securities before a Catastrophic Event

Current through Reg. 49, No. 28; July 12, 2024
(a) The association's board of directors may
					 request that TPFA issue class 1 public securities before a catastrophic event,
					 if the association's board of directors determines that class 1 public security
					 proceeds may become necessary and the commissioner approves the
					 request.
(b) The association must
					 submit its board of directors' written request under subsection (a) of this
					 section to the commissioner. The request must include the following
					 information:
(1) the reason why the requested
					 class 1 public securities may become necessary;
(2) the amount of premium and other revenue
					 that the association expects will be available to pay loss claims in the
					 current calendar year;
(3)
					 reinsurance coverage that the association expects will be available to pay
					 claims in the current calendar year;
(4) the amount in the CRTF that the
					 association expects will be available to pay loss claims in the current
					 calendar year;
(5) the principal
					 amount of class 1 public securities that are authorized and available to be
					 issued before a catastrophic event, and that are requested;
(6) the estimated amount of debt service for
					 the public securities, including any contractual coverage amount and public
					 security administrative expenses;
(7) the structure and terms of the public
					 securities, including any terms that may change as a result of a catastrophic
					 event or the use of any proceeds of class 1 public securities issued before a
					 catastrophic event;
(8) market
					 conditions and requirements necessary to sell marketable public
					 securities;
(9) a cost-benefit
					 analysis as described in §
												5.4135
					 of this division (relating to Marketable Public Securities; the Amount of Class
					 1 Public Securities that Cannot be Issued; Market Conditions and Requirements;
					 and Cost-Benefit Analysis);
(10) a
					 three-year pro forma financial statement consisting of a balance sheet, income
					 statement, and a statement of cash flow, reflecting the financial impact of
					 issuing class 1 public securities before a catastrophic event that assumes the
					 proceeds will be used in the event of a catastrophe; and
(11) any other relevant information requested
					 by the commissioner.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4125 - Issuance of Public Securities after a Catastrophic Event

Current through Reg. 49, No. 28; July 12, 2024
(a) As provided in §
											5.4123
					 of this division (relating to Public Securities Request, Approval, and
					 Issuance) and subject to the commissioner's approval, the association's board
					 of directors may request that TPFA issue public securities after a catastrophic
					 event has occurred. The association's board of directors may make the request:
(1) after the catastrophic event if the
					 association's board of directors determines that actual catastrophic losses are
					 estimated to exceed currently available net premium, other revenue, and money
					 in the CRTF; or
(2) before the
					 catastrophic event if the association's board of directors determines that
					 public security proceeds may become necessary to fund potential catastrophic
					 losses. This paragraph does not affect the requirements for issuing public
					 securities that are issued after a catastrophic event or the use of proceeds
					 from public securities issued after a catastrophic event.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4127 - Contingent Sources of Payment for Class 2 and Class 3 Public Securities

Current through Reg. 49, No. 28; July 12, 2024
(a) To obtain approval for the issuance of
					 class 2 or class 3 public securities paid from contingent surcharges, the
					 association must first submit a written request to the commissioner.
(b) In its request to the commissioner under
					 subsection (a) of this section, the association must include:
(1) a determination from TPFA that TPFA is
					 unable to issue class 2 or class 3 public securities paid as provided by
					 Insurance Code §
												2210.613
					 or §
												2210.6131,
					 as applicable; or
(2) the following
					 information:
(A) the association's estimated
					 net premium and other revenues;
(B)
					 the association's best estimate of the terms and conditions necessary to issue
					 marketable class 2 or class 3 public securities payable under Insurance Code
					 §
													2210.613
					 or §
													2210.6131,
					 as applicable, including:
(i) the estimated
					 annual payments for principal and interest;
(ii) the estimated contractual coverage
					 amount;
(iii) estimated reserve
					 requirements;
(iv) the estimated
					 amount of any other required payments for debt service;
(v) the estimated public security
					 administrative expenses; and
(vi)
					 any other conditions likely necessary to issue marketable public securities
					 payable under Insurance Code §
														2210.613
					 or §
														2210.6131,
					 as applicable, that the association determines will impact its operations;
					 and
(C) the
					 association's best estimate of the association surcharges needed to pay the
					 debt service required to issue marketable public securities payable under
					 Insurance Code §
													2210.613
					 or §
													2210.6131.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4133 - Public Security Proceeds

Current through Reg. 49, No. 28; July 12, 2024
(a) As
					 necessary, the association must make written requests to TPFA for the
					 disbursement of public security proceeds for the association program, including
(1) for the payment of incurred claims and
					 operating expenses of the association, or
(2) other amounts as authorized in Insurance
					 Code §
												2210.608.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4134 - Excess Public Security Proceeds

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 The association may use any excess public security proceeds remaining after the
					 purposes for which the public securities were issued or disbursed are satisfied
					 in accordance with Insurance Code §
											2210.608(b).
(b) As specified in Insurance Code
					 §§
											2210.072(a),
					 2210.073(a),
					 and
					 2210.0741(a),
					 public securities may be repaid before their full term if the association's
					 board of directors elects to do so and the Commissioner approves.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4135 - Marketable Public Securities; the Amount of Class 1 Public Securities that Cannot be Issued; Market Conditions and Requirements; and Cost-Benefit Analysis

Current through Reg. 49, No. 28; July 12, 2024
(a) Marketable
					 public securities under this division are public securities that the
					 association in consultation with TPFA determines:
(1) are consistent with state debt issuance
					 policy requirements; and
(2)
					 achieve the goals of the association.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4136 - Association Rate Filings

Current through Reg. 49, No. 28; July 12, 2024
While there are outstanding public securities payable
						under Insurance Code §§
											2210.612,
						2210.613,
						or
						2210.6131,
						or outstanding class 1 public securities issued before June 1, 2015, the
						association:
(1) must consider its
					 obligations for the payment of public securities payable under Insurance Code
					 §§
											2210.612,
					 2210.613,
					 or
					 2210.6131,
					 and class 1 public securities issued before June 1, 2015, including the
					 additional amount of any debt service coverage that the association determines
					 is required for the issuance of marketable public securities in developing its
					 rates;
(2) must include in a rate
					 filing submitted to the department an analysis that demonstrates that the filed
					 rates produce premium sufficient to provide for at least:
(A) the expected operating costs of the
					 association, including expected nonhurricane wind and hail losses and loss
					 adjustment expenses; and
(B) the
					 expected payment of public security obligations payable under Insurance Code
					 §§
												2210.612,
					 2210.613,
					 or
					 2210.6131,
					 and class 1 public securities issued before June 1, 2015, including any
					 contractual coverage amount the association determines is required for the
					 issuance of marketable public securities, during the period in which the rates
					 will be in effect; and
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4141 - Class 1 Public Security Trust Fund

Current through Reg. 49, No. 28; July 12, 2024
(a) While class 1 public securities are
					 outstanding, the association must deposit net premium and other revenue in the
					 class 1 public security trust fund at periods and in amounts as required by the
					 class 1 public security agreements to fund the class 1 payment obligation. As
					 required by Insurance Code §
											2210.609(c),
					 the association must deposit association surcharges collected under Insurance
					 Code §
											2210.612 in the class
					 1 public security trust fund.
(b)
					 Without limiting other options, the class 1 public security agreements may
					 include an operating reserve fund. If the class 1 public security trust fund
					 does not contain sufficient money to pay debt service on the class 1 public
					 securities, administrative expenses on the class 1 public securities, or other
					 class 1 public security obligations, the association must transfer sufficient
					 money from any operating reserve fund or other association-held funds to the
					 class 1 public security trust fund to make the payment.
(c) The association may not directly or
					 indirectly use, borrow, or in any manner pledge or encumber association
					 surcharges collected or to be collected, except for the payment of class 1
					 public security obligations and as otherwise authorized in this
					 title.
(d) The trust company must
					 deposit any net investment income earned on net premium and other revenue and
					 on the association surcharges into the class 1 public security trust fund while
					 these amounts are on deposit.
(e)
					 Following the issuance of public securities, net premium may be pledged for the
					 payment of class 1 payment obligations. Net premium earned in one catastrophe
					 year may be pledged for the repayment of public securities issued in prior
					 catastrophe years.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4142 - Class 2 and Class 3 Public Security Trust Funds

Current through Reg. 49, No. 28; July 12, 2024
(a) While class 2 or class 3 public
					 securities payable under Insurance Code §
											2210.613 and §
											2210.6131,
					 respectively, are outstanding, the association must deposit net premium and
					 other revenue in the class 2 public security trust fund and the class 3 public
					 security trust fund, respectively, at periods and in amounts as required by the
					 class 2 and class 3 public security agreements to fund the class 2 and class 3
					 payment obligations. As required by Insurance Code §
											2210.609(c),
					 the association must deposit association surcharges collected under Insurance
					 Code §
											2210.613 and §
											2210.6131 in the class
					 2 public security trust fund and the class 3 public security trust fund,
					 respectively.
(b) Without limiting
					 other options, for public securities payable under Insurance Code §
											2210.613 and §
											2210.6131, the class 2
					 and class 3 public security agreements may include an operating reserve fund.
					 If the class 2 or class 3 public security trust funds do not contain sufficient
					 money to pay debt service on the class 2 or class 3 public securities,
					 administrative expenses on the class 2 or class 3 public securities, or other
					 class 2 or class 3 public security obligations, the association must transfer
					 sufficient money from any operating reserve fund or other association-held
					 funds to the class 2 or class 3 public security trust fund, as applicable, to
					 make the payment.
(c) The
					 association may not directly or indirectly use, borrow, or in any manner pledge
					 or encumber association surcharges collected or to be collected, except for the
					 payment of the applicable public security obligations and as otherwise
					 authorized in this title.
(d) The
					 trust company must deposit any net investment income earned on net premium and
					 other revenue and on the association surcharges into the appropriate trust fund
					 accounts while these amounts are on deposit.
(e) Following the issuance of public
					 securities, net premium may be pledged for the payment of class 2 and class 3
					 payment obligations. Net premium earned in one catastrophe year may be pledged
					 for the repayment of public securities issued in prior catastrophe
					 years.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4143 - Premium Surcharge Trust Fund

Current through Reg. 49, No. 28; July 12, 2024
(a) As
					 required by any agreements between the association, TPFA, and the trust
					 company, if public securities payable under Insurance Code §
											2210.6132
					 are outstanding, insurers may be required to deposit contingent surcharges
					 directly into the premium surcharge trust fund or funds.
(b) If insurers are required to direct
					 deposit under subsection (a) of this section, then the association must provide
					 notice to the commissioner and insurers no later than 60 days before the
					 insurers must implement the contingent surcharge.
(c) The notice under subsection (b) of this
					 section must include all applicable deposit instructions, including any
					 required routing information and account numbers.
(d) Insurers must deposit the funds into the
					 appropriate accounts on the date the funds must otherwise be remitted to the
					 association under §
											5.4186
					 of this division (relating to Remittance of Contingent Surcharges).
(e) If insurers are not required to direct
					 deposit under subsection (a) of this section, then the association must deposit
					 the collected contingent surcharges on receipt into the premium surcharge trust
					 fund or funds.
(f) The association
					 may not directly or indirectly use, borrow, or in any manner pledge or encumber
					 contingent surcharges collected or to be collected, by the association except
					 for the payment of the applicable public security obligations and as otherwise
					 authorized in this title.
(g) The
					 trust company must deposit any net investment income earned on the contingent
					 surcharges into the appropriate trust fund accounts while these amounts are on
					 deposit.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4144 - Excess Premium Surcharge Revenue

Current through Reg. 49, No. 28; July 12, 2024
Revenue collected in any calendar year from premium
						surcharges under Insurance Code §§
											2210.612,
						2210.613,
						2210.6131,
						and
						2210.6132
						that exceeds the amount of class 1, class 2, or class 3 public security
						obligations and class 1, class 2, or class 3 public security administrative
						expenses payable in that calendar year from premium surcharges and interest
						earned on the premium surcharge trust fund deposits may, at the discretion of
						the association, be:
(1) used to pay
					 class 1, class 2, or class 3 public security obligations payable in the
					 following calendar year, respectively, offsetting the amount of the premium
					 surcharge that would otherwise be required to be levied for the year under
					 Insurance Code Chapter 2210, Subchapter M;
(2) used to redeem or purchase outstanding
					 class 1, class 2, or class 3 public securities, respectively; or
(3) deposited in the CRTF.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4145 - Excess Net Premium and Other Revenue

Current through Reg. 49, No. 28; July 12, 2024
Excess net premium and other revenue collected in the
						class 1, class 2, and class 3 public security trust funds that is disbursed to
						the association is an asset of the association and may be used for any purpose
						authorized in Insurance Code §
											2210.056,
						or deposited in the CRTF.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4160 - Member Assessments to Pay for Reinsurance in Excess of the Association's Statutory Minimum Funding Level

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 The association, with the Commissioner's approval, must assess members as
					 provided by Insurance Code §
											2210.453(d)
					 to pay for the cost of any reinsurance coverage or alternative risk transfer
					 mechanisms it purchases in excess of the statutory minimum funding level. If,
					 in a calendar year, the association must assess its members under Insurance
					 Code §
											2210.453(d),
(1) then the association must request the
					 Commissioner's approval within a reasonable time after it knows its total
					 reinsurance costs for that calendar year; and
(2) must issue the assessment by the later of
					 either:
(A) 120 days after the date the
					 association receives the data that TDI provides under §
													5.4162(f)
					 of this title for that year; or
(B)
					 December 1 of that year.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4161 - Member Assessments Other than Assessments for Reinsurance in Excess of the Association's Statutory Minimum Funding Level

Current through Reg. 49, No. 28; July 12, 2024
(a) The association, with the approval of the
					 Commissioner, must assess members as provided by Insurance Code Chapter
					 2210.
(b) The association must
					 provide, in the aggregate for the catastrophe year, the following information
					 when requesting the Commissioner to approve a class 1, class 2, or class 3
					 assessment under Insurance Code §§
											2210.0725,
					 2210.074, or
					 2210.0742, as
					 applicable:
(1) the association's best
					 estimate of the amount of losses expected to be paid as a result of the event,
					 or series of events, that caused the need for the assessment
					 requested;
(2) the amount of losses
					 paid, or expected to be paid, from premium and other revenue of the
					 association;
(3) the amount of
					 losses paid, or expected to be paid, from available reserves of the association
					 and available amounts in the CRTF;
(4) the amount of losses paid, or expected to
					 be paid, from the proceeds of class 1 public securities issued, or expected to
					 be issued;
(5) the amount of class
					 1 assessments previously approved and the amount of class 1 assessments now
					 requested;
(6) in the case of a
					 request to approve a class 2 or class 3 assessment, the amount of losses paid,
					 or expected to be paid, from the proceeds of class 2 public securities issued,
					 or expected to be issued;
(7) in
					 the case of a request to approve a class 2 or class 3 assessment, the amount of
					 class 2 assessments previously approved and the amount of class 2 assessments
					 now requested;
(8) in the case of a
					 request to approve a class 3 assessment, the amount of losses paid, or expected
					 to be paid, from the proceeds of class 3 public securities issued, or expected
					 to be issued;
(9) in the case of a
					 request to approve a class 3 assessment, the amount of class 3 assessments
					 previously approved and the amount of class 3 assessments now
					 requested.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4162 - Amount of Assessment

Current through Reg. 49, No. 28; July 12, 2024
(a) The
					 association must determine which members of the association must participate in
					 any assessment under § 5.4160 and §
											5.4161 of this
					 title (relating to Member Assessments to Pay for Reinsurance In Excess of the
					 Association's Statutory Minimum Funding Level and Member Assessments Other than
					 Assessments for Reinsurance in Excess of the Association's Statutory Minimum
					 Funding Level).
(1) The association may not
					 include in the assessment an insurer that became a member of the association
					 after September 1, 2009, and that had not previously been a member of the
					 association, until after the second anniversary of the date on which the
					 insurer first becomes a member of the association.
(2) The association must include in the
					 assessment an insurer described under paragraph (1) of this subsection after
					 the second anniversary of the date on which the insurer first becomes a member
					 of the association without regard as to whether the catastrophic event that
					 gave rise to the assessments occurred prior to the second anniversary of the
					 date on which the insurer first became a member of the association.
(3) The association may not include in the
					 assessment formula the net direct premium of an affiliate insurer engaged in
					 the business of surplus lines insurance as described in the Insurance Code
					 §
												2210.052(c)
					 that a federal agency or court of competent jurisdiction determines to be
					 exempt from the assessment formula under Insurance Code Chapter 2210.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4163 - Notice of Assessment

Current through Reg. 49, No. 28; July 12, 2024
(a) Notice of
					 assessment shall be sent to each member, within 30 days after the Association
					 levies the assessment, by certified mail, return receipt requested, addressed
					 to the office of such member as it appears on the books of the Association.
					 Such notice shall state the member's allocated amount of assessment and shall
					 inform each member of the sanctions imposed by §5.4165 of this division
					 (relating to Failure to Pay Assessment) for the failure to pay such assessment
					 within the time prescribed by this section.
(b) Such notice shall also state that such
					 notification, and the content thereof, is an act, ruling, or decision of the
					 Association insofar as the amount of the assessment for such company is
					 concerned and that a member company to whom such notice is given shall be
					 entitled to appeal therefrom within 30 days from the date of such act, ruling,
					 or decision as shown on said notice, in accordance with the Insurance Code
					 §
											2210.551; provided,
					 however, that the right of appeal provided for herein shall not include the
					 subject matter of any act, ruling, or decision of the Association determining
					 the amount of net direct premiums of such member company or the percentage of
					 participation for such member company when notice of the amount of such net
					 direct premiums or such percentage of participation has previously been given
					 by the Association in accordance with §
											5.4162 of
					 this division (relating to Amount of Assessment).
(c) The time period for an appeal of an act,
					 ruling, or decision of the Association respecting net direct premiums or
					 percentage of participation is computed from the date of the act, ruling, or
					 decision of the Association respecting same.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4164 - Payment of Assessment

Current through Reg. 49, No. 28; July 12, 2024
Each member must remit to the association payment in full
						of its assessed amount of any assessment levied by the association within 30
						days of receipt of notice of assessment.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4165 - Failure to Pay Assessment

Current through Reg. 49, No. 28; July 12, 2024
(a) If the
					 Association has not received payment in full of a member's allocated amount of
					 assessment within 40 days of notice of the receipt by the member of the notice
					 of assessment, then the Association shall report to the commissioner the fact
					 that such assessment has not been paid, and the commissioner shall immediately
					 issue an order suspending such member's certificate of authority to transact
					 the business of insurance in the State of Texas until such time as the
					 Association certifies to the commissioner that such assessment has been paid in
					 full.
(b) Removal of a member's
					 certificate of authority to transact business in the State of Texas by the
					 commissioner shall in no way affect the right of the Association to proceed
					 against such member in any court of law or equity in the United States for any
					 remedy provided by law or contract to the Association, including, but not
					 limited to, the right to collect such member's assessment.
(c) In addition to any other remedy provided
					 herein, the Association may offset assessments due from a member against any
					 amounts in any account of such delinquent member.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4166 - Contest After Payment of Assessment

Current through Reg. 49, No. 28; July 12, 2024
(a) A
					 member does not waive any right it may have to contest the computation of its
					 allocated assessment amount by mailing or otherwise delivering payment of its
					 allocated assessment amount to the Association, as provided herein.
(b) Such contest shall not, however, toll the
					 time within which assessments must be paid or the report to be made to the
					 commissioner or the action to be taken by the commissioner upon receipt of such
					 report, all as set out in §5.4165 of this division (relating to Failure to
					 Pay Assessment).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4167 - Inability to Pay Assessment by Reason of Insolvency

Current through Reg. 49, No. 28; July 12, 2024
In the event a member of the association is placed in
						temporary or permanent receivership under order of a court of competent
						jurisdiction based on a finding of insolvency, and such member has been
						designated an impaired insurer by the Commissioner, and in the event an
						assessment is necessary in the year the insurer is declared impaired, the
						aggregate net amount not recovered from such insolvent insurer must be
						reallocated among the remaining members of the association in accordance with
						the method of determining participation as determined in the plan of
						operation.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4173 - Determination of the Contingent Surcharge Percentage

Current through Reg. 49, No. 28; July 12, 2024
(a) If the commissioner orders public
					 securities to be paid under Insurance Code §
											2210.6132,
					 the association must submit a written request to the commissioner to approve a
					 contingent surcharge on policyholders with insured property in the catastrophe
					 area as authorized under Insurance Code §
											2210.6132.
					 The association's request must specify, for each applicable class of public
					 securities:
(1) the total amount of the class
					 2 and class 3 public security obligations and estimated amount of the class 2
					 and class 3 public security administrative expenses, including any required
					 contractual coverage amount, provided in the TPFA notice; and
(2) the date on which the contingent
					 surcharge is to commence and the date the contingent surcharge for the noticed
					 amount is to end.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4181 - Premiums to Be Surcharged

Current through Reg. 49, No. 28; July 12, 2024
(a) The
					 association surcharge percentage and the contingent surcharge must be applied
					 to:
(1) amounts reported as premium for the
					 purposes of reporting under the Annual Statement, Exhibit of Premiums and
					 Losses (Statutory Page 14), Texas;
(2) if not reported as described in paragraph
					 (1) of this subsection, those additional amounts collected by insurers that are
					 subject to premium taxation by the comptroller, including policy fees not
					 reported as premium; and
(3)
					 premium subject to surplus lines premium tax, and premium subject to
					 independently procured premium tax.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4182 - Method for Determining the Premium Surcharges

Current through Reg. 49, No. 28; July 12, 2024
(a) The methods addressed in this section
					 relating to contingent surcharges will apply to all:
(1) policies written and reported under the
					 following annual statement lines of business: fire; allied lines; farm and
					 ranch owners; homeowners; commercial multiple peril (nonliability portion);
					 private passenger auto no fault (personal injury protection (PIP)), other
					 private passenger auto liability, and private passenger auto physical damage;
					 and commercial auto no fault (PIP), other commercial auto liability, and
					 commercial auto physical damage; and
(2) personal and commercial risks assigned by
					 TAIPA under Insurance Code Chapter 2151.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4184 - Application of Premium Surcharges

Current through Reg. 49, No. 28; July 12, 2024
(a) When
					 assessed under Insurance Code §
											2210.6132,
					 the contingent surcharges must apply to all policies with insured property in
					 the catastrophe area that are issued or renewed with effective dates in the
					 surcharge period specified in the commissioner's order.
(b) For association policies that meet the
					 requirements of §
											5.4912
					 of Division 10 of this subchapter (relating to Filing and Issuance of Policy
					 Forms Relating to Premium Surcharges under Insurance Code §§
											2210.612,
					 2210.613,
					 and
					 2210.6131),
					 association surcharges must apply to all association policies that are in
					 effect on the surcharge date. For association policies that do not yet meet the
					 requirements of §
											5.4912
					 of Division 10 of this subchapter, association surcharges must apply to all
					 association policies that are issued or renewed with effective dates in the
					 surcharge period determined under §
											5.4126
					 of this division (relating to Determination of the Association Surcharge
					 Percentage).
(c) There are two
					 exceptions to the requirements of subsections (a) and (b) of this section:
(1) insurers must not surcharge policies, and
					 are not responsible for collecting premium surcharges on policies, that did not
					 go into effect or were canceled as of the inception date of the policy;
					 and
(2) for multiyear policies, the
					 premium surcharge in effect on the effective date of the policy, or the
					 anniversary date of the policy, must be applied to the 12-month premium for the
					 applicable policy period.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4185 - Mandatory Premium Surcharge Collection

Current through Reg. 49, No. 28; July 12, 2024
(a) Insurers may not pay the surcharges
					 instead of surcharging their policyholders; however, an insurer may remit a
					 surcharge prior to collecting the surcharge from its policyholder.
(b) Insurers must collect the contingent
					 surcharges proportionately as the insurer collects the premium.
(c) The association must collect the
					 association surcharge in full when due for policies compliant with §
											5.4912
					 (relating to Filing and Issuance of Policy Forms Relating to Premium Surcharges
					 under Insurance Code §§
											2210.612,
					 2210.613,
					 and
					 2210.6131)
					 of Division 10 of this subchapter. For policies not yet compliant with §
											5.4912,
					 the association must collect association surcharges in full no later than the
					 effective date of the policy.
(d)
					 Under Insurance Code §§
											2210.612(d),
					 2210.613(d),
					 and
					 2210.6131(d),
					 the failure of a policyholder to pay the association surcharge constitutes
					 failure to pay premium for the purposes of policy cancellation.
(e) Before insurers may apply funds in a
					 given payment to premiums, they must either:
(1) apply funds in the payment to any
					 contingent surcharges due in that payment; or
(2) apply funds in the payment to any
					 contingent surcharges due in that payment in proportion to the amount of
					 contingent surcharges due in that payment.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4186 - Remittance of Contingent Surcharges

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 Except as provided in §
											5.4143
					 of this division (relating to Premium Surcharge Trust Fund), insurers must
					 remit to the association the aggregate amount of contingent surcharges as
					 provided by this section. An affiliated surplus lines insurer may allow a
					 surplus lines agent to remit contingent surcharges to the association on its
					 behalf in compliance with any procedures established by the association
					 relating to contingent surcharge remissions from surplus lines
					 agents.
(b) Insurers, or surplus
					 lines agents allowed by affiliated surplus lines insurers to remit contingent
					 surcharges under subsection (a) of this section, must remit all surcharges not
					 later than the last day of the month following the month in which the
					 corresponding written premium transaction was effective.
(c) Insurers and agents may not allow or
					 require policyholders to make separate payments for the surcharge amounts that
					 are payable to the association or the premium surcharge trust fund or
					 funds.
(d) Subsection (b) of this
					 section applies to all insurers regardless of whether the policyholder paid the
					 contingent surcharge through an agent of the insurer or the policyholder paid
					 the contingent surcharge directly to the insurer.
(e) An affiliated surplus lines insurer that
					 allows an agent to remit contingent surcharges to the association under
					 subsection (a) of this section may be held liable by the department for the
					 failure of its agent to remit the contingent surcharges or timely remit the
					 contingent surcharges, under subsection (b) of this section.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION › Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES › Section 5.4187 - Offsets

Current through Reg. 49, No. 28; July 12, 2024
(a) An insurer may credit a contingent
					 surcharge amount on its next remission to the association if the insurer has
					 already remitted the amount to the association for:
(1) the portion of the surcharge the insurer
					 was not able to collect from the policyholder, if the policy was canceled or
					 expired;
(2) the portion of the
					 surcharge remitted to the association, or deposited directly in the premium
					 surcharge trust fund, that was later refunded to the policyholder as a result
					 of a rescission, midterm cancellation, or midterm policy change, as described
					 in §
												5.4184
					 of this division (relating to Application of Premium Surcharges); or
(3) the portion of a surcharge remitted to
					 the association, or deposited directly in the premium surcharge trust fund or
					 funds, in excess of a deposit premium as described in §
												5.4184
					 of this division.