Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9922 - Relationship with Member Insurers

Current through Reg. 49, No. 28; July 12, 2024
(a) Each
					 member insurer shall participate in the writings, expenses, assessments,
					 profits and losses of the Association in the same proportion as a member
					 insurer's net direct residential property insurance premiums written in Texas
					 bears to the aggregate net direct residential property insurance premiums
					 written by all member insurers in Texas as determined by the Texas residential
					 property statistical plan. The Association, however, may adopt depopulation
					 plans under which insurers who voluntarily write residential property insurance
					 or take risks out of the Association will receive a credit.
(b) In response to a data call developed by
					 the department, all members shall file annually by June 1, their residential
					 property insurance written premiums for the prior calendar year with the
					 department. The department shall provide this information filed by all members
					 to the Association. The Association shall use this information to calculate
					 each member's participation under subsection (a) of this section and to
					 calculate any assessments under §
											5.9923
					 of this subchapter (relating to Assessments, Recoupments, Member Insolvency and
					 Withdrawal).
(c) In order to
					 facilitate the commencement of operations immediately after the adoption of
					 this plan of operation, all members, if requested by the Association, shall
					 file with the department their residential property insurance written premiums
					 for calendar year 2001. Any data so requested shall be submitted by the members
					 to the department within 30 days after the department has mailed the request.
					 Any such data collected by the department, in coordination with other 2001
					 statistical/financial data for members that the department has, shall be
					 provided to the Association upon request. The Association may use this data to
					 calculate initial assessment percentages for all members. Each member shall be
					 required to pay any start-up assessment request based on these initial
					 percentages within 30 days after receipt of the assessment request. Any member
					 company may challenge the accuracy of a start-up assessment request after
					 timely paying the start-up assessment request under protest. Payment of the
					 disputed amount is a required predicate to challenging the accuracy of the
					 start-up calculation. Any subsequent adjustments made to start-up assessment
					 payments under protest shall be paid by (or remitted to) the challenging member
					 company within 30 days after the agreement or final order that establishes the
					 correct start-up assessment request amount. The Association may issue more than
					 one start-up assessment request using the initial assessment percentages until
					 new percentages can be calculated based on data for the year ended December 31,
					 2002 and thereafter. Time frames and procedures for payment of assessments
					 other than a start-up assessment are governed by other provisions of this plan
					 of operation.
(d) There shall be an
					 annual meeting of the Association and its member insurers at a time and place
					 fixed by the Governing Committee.
(e) A special meeting of the Association and
					 its member insurers may be called by the Governing Committee at such time and
					 place designated by the Governing Committee.
(f) Ten days notice of an annual or special
					 meeting with member insurers shall be given in writing by the Governing
					 Committee to member insurers. Notice of any meeting shall be accompanied by an
					 agenda for the meeting.