Tex. Ins. Code Section 2203.359
Surcharge Fee


(a)

A surcharge fee is assessed against:

(1)

each association member; and

(2)

the association.

(b)

The commissioner shall set the surcharge fee in an amount sufficient to pay all debt service on the bonds issued under this subchapter. Each association member and the association shall pay the surcharge fee as required by the commissioner by rule.

(c)

The comptroller shall collect the surcharge fee and the department shall reimburse the comptroller in the manner described by Section 201.052 (Reimbursement).

(d)

The commissioner, in consultation with the comptroller, may coordinate payment and collection of the surcharge fee with other payments made by association members and collected by the comptroller.

(e)

Except as provided by Subsection (f), as a condition of engaging in the business of insurance in this state, an association member agrees that, if the member leaves the liability insurance market in this state, the member remains obligated to pay the member’s share of the surcharge fee assessed under this section until the bonds are retired. The amount assessed against a member under this subsection must be:

(1)

proportionate to the member’s share of the liability insurance market, including automobile liability insurance, in this state as of the last complete reporting period before the date the member ceases to engage in the liability insurance business in this state; and

(2)

based on the member’s gross premiums for liability insurance, including automobile liability insurance, for the member’s last reporting period.

(f)

An association member is not required to pay the proportionate amount under Subsection (e) in any year in which the surcharge fee assessed against association members continuing to write liability insurance in this state is sufficient to service the bond obligation.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.

Source: Section 2203.359 — Surcharge Fee, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­2203.­htm#2203.­359 (accessed Jun. 5, 2024).

2203.001
Short Title
2203.002
Definitions
2203.003
Immunity
2203.004
Applicability of Other Law
2203.005
Relationship to Surplus Lines Insurance
2203.051
Purpose of Association
2203.052
Board of Directors
2203.053
Plan of Operation
2203.054
Amendments to Plan of Operation
2203.055
Joint Underwriting Association Membership
2203.056
Annual Statement
2203.101
General Eligibility
2203.102
Insurer of Last Resort for Certain Nursing Homes and Assisted Living Facilities
2203.103
Eligibility of Other Health Care Practitioners and Facilities
2203.104
Application for Coverage
2203.151
Powers Relating to Medical Liability Insurance Coverage
2203.152
Policy Limits
2203.153
Following Form Excess Liability Coverage
2203.154
Punitive Damages Excluded
2203.155
Installment Plan
2203.156
Term of Policy
2203.201
Applicability of Other Law to Rates and Policy Forms
2203.202
Rate Standards
2203.203
Discount for Certain Health Care Providers
2203.251
Deficit Recoupment
2203.252
Assessment of Policyholders for Deficit Recoupment
2203.253
Limitation on Reimbursement by Member for Deficit Recoupment
2203.254
Contribution by Members for Sound Financial Operation
2203.255
Reimbursement of Assessment or Contribution
2203.256
Standards for Recoupment Provisions
2203.301
Policyholder’s Stabilization Reserve Fund for Physicians and Certain Health Care Providers
2203.302
Policyholder’s Stabilization Reserve Fund Charge for Physicians and Certain Health Care Providers
2203.303
Policyholder’s Stabilization Reserve Fund for Nursing Homes and Assisted Living Facilities
2203.304
Policyholder’s Stabilization Reserve Fund Charge for Nursing Homes and Assisted Living Facilities
2203.305
Separate Funds
2203.351
Purpose
2203.352
Definitions
2203.353
Applicability of Other Laws
2203.354
Issuance of Bonds Authorized
2203.355
Limitation on Amount of Bonds
2203.356
Terms of Issuance
2203.357
Contents of Bond Resolution
2203.358
Source of Payment
2203.359
Surcharge Fee
2203.360
Exemption from Taxation
2203.361
Authorized Investments
2203.362
State Pledge Regarding Bond Owner Rights and Remedies
2203.363
Payment Enforceable by Mandamus
2203.401
Definition
2203.402
Appeal to Board of Directors
2203.403
Decision of Board of Directors
2203.404
Appeal to Commissioner
2203.405
Commissioner’s Decision
2203.406
Appeal of Commissioner’s Decision
2203.1021
Volunteer Health Care Providers

Accessed:
Jun. 5, 2024

§ 2203.359’s source at texas​.gov