Tex.
Ins. Code Section 2211.054
Contents of Plan of Operation
(1)
provide for a nonprofit association to issue residential property insurance and, if applicable, property owners’ association insurance under this chapter and distribute the losses and expenses in writing that insurance in this state;(2)
provide that all insurers that write residential property insurance shall participate in the association in accordance with Sections 2211.101 (Coverage Provided to Insureds in Underserved Area)(b) and (c);(3)
provide that a participating insurer is entitled to receive credit in accordance with Section 2211.101 (Coverage Provided to Insureds in Underserved Area)(d);(4)
provide for the immediate binding of eligible risks;(5)
provide for the use of premium installment payment plans, adequate marketing, and service facilities;(6)
provide for the establishment of reasonable service standards;(7)
provide procedures for efficient, economical, fair, and nondiscriminatory administration of the association;(8)
provide procedures for determining the net level of participation required for each insurer in the association;(9)
provide for the use of deductibles and other underwriting devices;(10)
provide for assessment of all members in amounts sufficient to operate the association;(11)
establish maximum limits of liability to be placed through the program;(12)
establish commissions to be paid to the insurance agents submitting applications;(13)
provide that the association issue policies in the association’s own name;(14)
provide reasonable underwriting standards for determining insurability of a risk;(15)
provide procedures for the association to assume and cede reinsurance; and(16)
provide any other procedure or operational matter the governing committee or the commissioner considers necessary.
Source:
Section 2211.054 — Contents of Plan of Operation, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2211.htm#2211.054 (accessed Jun. 5, 2024).
