Tex.
Ins. Code Section 942.003
Limited Exemption from Insurance Laws; Applicability of Certain Laws
(a)
An exchange is exempt from the operation of all insurance laws of this state except as specifically provided in this chapter or unless exchanges are specifically mentioned in the other law.(b)
An exchange is subject to:(1)
Subchapter A, Chapter 5, Chapter 254 (Motor Vehicle Insurance), Subchapters A and B, Chapter 1806 (Prohibited Practices and Rebates Related to Policies), and Subtitle C, Title 10;(2)
Articles 5.35, 5.39, and 5.40;(3)
Article 5.13-2, as provided by that article, Chapter 2251 (Rates), as provided by that chapter, and Chapter 2301 (Policy Forms), as provided by that chapter;(4)
Chapters 402 (Disclosure of Material Transactions), 541 (Unfair Methods of Competition and Unfair or Deceptive Acts or Practices), and 2253 (Rating Territories);(5)
Subchapter A, Chapter 401 (Audits and Examinations), and Sections 401.051 (Duty to Examine Carriers), 401.052 (Frequency of Examination), 401.054 (Powers Related to Examination), 401.055 (Effect of Subchapter on Authority to Use Information), 401.056 (Rules Related to Reports and Hearings), 401.057 (Use of Audit and Work Papers), 401.058 (Confidentiality of Reports and Related Information), 401.059 (Determination of Value), 401.060 (Right to Information Relating to Determination of Value or Market Value), 401.061 (Disciplinary Action for Failure to Comply with Subchapter), 401.062 (Stay of Rule, Order, Decision, or Finding), 401.151 (Expenses of Examination of Domestic Insurer), 401.152 (Expenses of Examination of Other Insurers), 401.155 (Additional Assessments), and 401.156 (Deposit and Use of Assessment and Fee);(6)
Subchapter B, Chapter 404 (Financial Condition);(7)
Subchapter C, Chapter 1806 (Prohibited Practices and Rebates Related to Policies); and(8)
Sections 38.001 (Inquiries), 501.159 (Comments on Certain Insurer Filings), 822.203 (Capital Required Generally), 822.205 (Unencumbered Surplus or Guaranty Fund Requirements for Certain Insurance Companies), 822.210 (Commissioner May Require Larger Capital and Surplus Amounts), 822.212 (Increase of Capital and Surplus), 861.254 (Annual Statement; Filing Fee)(a)-(f), 861.255 (Rules Regarding Certain Assets), 862.001 (Annual Statement)(b), 862.003 (Admitted Assets), 2002.002 (Lien on Insured Property), 2002.005 (Coinsurance Clauses), 2002.051 (Policy Forms and Endorsements for Residential Property Insurance), and 2002.052 (Applicability of Other Law to Residential Property Insurance).(c)
Chapter 2007 applies to rates for motor vehicle insurance written by an exchange.(d)
The provisions of the Texas Business Corporation Act that relate to the indemnification of officers and directors apply to an exchange.(e)
Subscribers and their attorney in fact are subject to Sections 822.051 (Formation of Company), 822.057-822.060, and 822.201 (Applicability of Capital and Surplus Requirements), except that:(1)
the declaration of the subscribers prescribed by Section 942.053 (Subscriber Declaration) replaces the articles of incorporation; and(2)
the unencumbered surplus of the exchange constitutes capital structure for purposes of Section 822.060 (Action on Application).(f)
An exchange is subject to Chapter 2210 (Texas Windstorm Insurance Association), as provided by that chapter.
Source:
Section 942.003 — Limited Exemption from Insurance Laws; Applicability of Certain Laws, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.942.htm#942.003 (accessed Jun. 5, 2024).
