Law:Title 10. Property And Casualty Insurance. Subtitle G. Pools, Groups, Plans, And Self-insurance (Texas)

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Subtitle G. Pools, Groups, Plans, And Self-insurance

Contents

Chapter 2151. Texas Automobile Insurance Plan Association

Subchapter A. General Provisions

Section 2151.001.  Definitions.

In this chapter:

(1)  "Association" means the Texas Automobile Insurance Plan Association.

(2)  "Authorized insurer" means an insurer authorized by the department to write automobile liability coverage under this title.  Except as provided by Section 2251.204, the term does not include a county mutual insurance company organized under Chapter 912.

(3)  "Insurance" means an insurance policy that meets the requirements of Chapter 601, Transportation Code.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Subchapter B. Texas Automobile Insurance Plan Association

Section 2151.051.  Nature And Composition Of Association.

(a) The Texas Automobile Insurance Plan Association is a nonprofit corporate body composed of all authorized insurers.

(b)  Each authorized insurer must be a member of the association as a condition of the insurer's authority to write automobile liability insurance in this state.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.052.  Authority Of Governing Committee.

The association is administered by a governing committee under a plan of operation.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.053.  Membership Of Governing Committee.

The governing committee is composed of 15 members selected as follows:

(1)  eight members who represent the interests of insurers, elected by the association members according to a method the members determine;

(2)  five public members, nominated by the office of public insurance counsel and selected by the commissioner; and

(3)  two members who are general or personal lines  property and casualty agents, as required by the plan of operation.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 548, Sec. 2.13, eff. September 1, 2007.



Section 2151.054.  Eligibility To Serve As Insurer Representative.

To be eligible to serve on the governing committee as a representative of insurers, an individual must be a full-time employee of an authorized insurer.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.055.  Ineligibility To Serve As Public Member.

An individual may not serve on the governing committee as a public member if the individual, another individual related to that individual within the second degree by consanguinity or affinity, or another individual residing in the same household with that individual:

(1)  is required to be registered or licensed under this code or another insurance law of this state;

(2)  is employed by or acts as a consultant to a person required to be registered or licensed or required to hold a certificate of authority under this code or another insurance law of this state;

(3)  is the owner of, has a financial interest in, or participates in the management of an organization required to be registered or licensed or required to hold a certificate of authority under this code or another insurance law of this state;

(4)  is an officer, employer, or consultant of an association in the field of insurance; or

(5)  is required to register as a lobbyist under Chapter 305, Government Code.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.056.  Immunity From Liability.

(a) The association, a member of the governing committee, or an employee of the association is not personally liable for:

(1)  an act performed in good faith within the scope of the person's authority as determined under this chapter or the plan of operation; or

(2)  damages occasioned by the person's official act or omission except an act or omission that is corrupt or malicious.

(b)  The association shall provide counsel to defend an action brought against a member of the governing committee or an employee because of the person's official act or omission regardless of whether the person has terminated service with the association when the action is instituted.

(c)  This section is cumulative of and does not affect or modify a common law or statutory privilege or immunity.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Subchapter C. Powers And Duties Of Association

Section 2151.101.  Powers Of Nonprofit Corporation.

(a) The association has the powers granted to a nonprofit corporation under the Business Organizations Code.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.102.  Assignment Of Insurance; Eligibility.

(a) The association shall provide for the assignment of insurance to an authorized insurer for a person required by Chapter 601, Transportation Code, to show proof of financial responsibility for the future.

(b)  An applicant is not eligible for insurance through the association unless the applicant and the servicing agent certify as part of the application to the association that the applicant has been rejected for insurance by at least two insurers that are authorized to engage in business in this state and that are writing automobile insurance in this state.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.103.  Assessments.

(a) The association may assess authorized insurers to provide money to operate the association.

(b)  The amount assessed against an authorized insurer must be in proportion to the insurer's writing of automobile liability insurance in this state.

(c)  The association may bring an action to collect an assessment against an authorized insurer that does not pay the assessment within a reasonable time.  In addition, the association may report an authorized insurer's failure to pay the assessment to the commissioner.  The commissioner may institute a disciplinary action against the insurer under Chapter 82.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Subchapter D. Plan Of Operation

Section 2151.151.  Contents Of Plan Of Operation; Amendments.

(a) The plan of operation must:

(1)  provide for the efficient, economical, fair, and nondiscriminatory administration of the association; and

(2)  provide a means by which insurance may be provided in accordance with Section 2151.102(a).

(b)  Subject to the commissioner's approval, the governing committee may amend the plan of operation.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.152.  Corrective Action To Plan Of Operation.

If the commissioner at any time believes that any part of the plan of operation is inconsistent with the purposes of Chapter 601, Transportation Code, the commissioner shall notify the governing committee in writing so that the governing committee may take corrective action.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.153.  Incentive Programs.

(a) The plan of operation must include incentive programs to encourage authorized insurers to write insurance on a voluntary basis and to minimize the use of the association as a means to obtain insurance.

(b)  One incentive program must target underserved geographic areas, which the commissioner by rule shall designate.  In designating underserved areas, the commissioner shall consider with respect to an area:

(1)  the availability of insurance;

(2)  the number of uninsured drivers;

(3)  the number of drivers insured through the association; and

(4)  any other relevant factor.

(c)  The incentive programs are effective on the commissioner's approval.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.154.  Assignment Distribution Plan.

(a) The plan of operation must include a voluntary, competitive limited assignment distribution plan that allows an authorized insurer to contract directly with a servicing carrier to accept assignments to the servicing carrier by the association.

(b)  A servicing carrier must be authorized to write automobile insurance in this state and must:

(1)  have written automobile liability insurance in this state for at least five years; or

(2)  be currently engaged as a servicing carrier for assigned risk automobile business in at least one other state.

(c)  After notice and hearing, the commissioner may prohibit an insurer from acting as a servicing carrier.

(d)  An authorized insurer and a servicing carrier shall determine through negotiation the terms of a contract described by this section, including the buy-out fee.

(e)  The governing committee may:

(1)  adopt reasonable rules for the conduct of business under a contract described by this section; and

(2)  establish reasonable standards of eligibility for servicing carriers.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 730, Sec. 3B.058, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch. 921, Sec. 9.058, eff. September 1, 2007.



Subchapter E. Rates For Insurance; Hearing

Section 2151.201.  Rate Standards.

Rates for insurance provided under this chapter must be:

(1)  just, reasonable, adequate, not excessive, not confiscatory, and not unfairly discriminatory for the risks to which the rates apply; and

(2)  sufficient to carry all claims to maturity and meet the expenses incurred in the writing and servicing of the business.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.202.  Rate Filings.

(a) The association shall file annually with the department rates to be charged for insurance provided through the association for approval by the commissioner.

(b)  The association may not file rates under this section more than once in any 12-month period.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.203.  Recording And Reporting Of Premium, Loss, And Expense Experience.

(a) The commissioner shall adopt reasonable rules and statistical plans for the recording and reporting of premium, loss, and expense experience and other required data by each authorized insurer.  The premium, loss, and expense experience must be reported separately for business assigned to the insurer.

(b)  Each authorized insurer shall use the statistical plans adopted under this section to record and report premium, loss, and expense experience and other required data in accordance with the rules adopted by the commissioner.

(c)  In approving rates under this subchapter, the commissioner shall consider the reports collected under the statistical plan regarding aggregated premiums earned and losses and expenses incurred in the writing of automobile insurance through the association.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.204.  Notice Of Filing.

(a) The department shall file with the secretary of state for publication in the Texas Register notice that a filing has been made under Section 2151.202 not later than the seventh day after the date the filing is received by the department.

(b)  The notice must include information relating to:

(1)  the availability of the filing for public inspection at the department during regular business hours;

(2)  the procedures for obtaining copies of the filing;

(3)  procedures for making written comments related to the filing; and

(4)  the time, place, and date of the hearing scheduled under Section 2151.206.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.205.  Opportunity To Review Filing.

Before approving, disapproving, or modifying a filing made under Section 2151.202, the commissioner must provide to all interested persons a reasonable opportunity to:

(1)  review the filing;

(2)  obtain a copy of the filing on payment of any legally required copying cost; and

(3)  submit to the commissioner written comments, analyses, or information related to the filing.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.206.  Hearing On Filing.

(a) Not later than the 45th day after the date the department receives a filing required by Section 2151.202, the commissioner shall schedule a hearing at which interested persons may present written or oral comments relating to the filing.

(b)  The association, the public insurance counsel, and any other interested person or entity that submits proposed changes or actuarial analyses may ask questions of any person testifying at the hearing.

(c)  A hearing held under this section is not a contested case hearing under Chapter 2001, Government Code.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.207.  Action Of Commissioner On Filing.

(a) After the conclusion of the hearing under Section 2151.206, the commissioner shall approve, disapprove, or modify the filing in writing.

(b)  If the commissioner disapproves a filing, the commissioner shall state in writing the reasons for the disapproval and the criteria to be met by the association to obtain approval.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.208.  Amended Filing.

The association may file with the commissioner an amended filing to comply with the commissioner's comments not later than the 10th day after the date the association receives the commissioner's written disapproval.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.209.  Opportunity To Review Amended Filing.

Before approving or disapproving an amended filing, the commissioner must provide to all interested persons a reasonable opportunity, in the same manner an opportunity is provided under Section 2151.205, to:

(1)  review the amended filing;

(2)  obtain a copy of the amended filing on payment of any legally required copying cost; and

(3)  submit to the commissioner written comments or information related to the amended filing.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.210.  Hearing On Amended Filing.

(a) The commissioner may hold a hearing in the manner provided by Section 2151.206 not later than the 20th day after the date the department receives an amended filing.

(b)  Not later than the 10th day after the date the hearing on the amended filing is concluded, the commissioner shall approve or disapprove the amended filing.

(c)  Not later than the 30th day after the date the amended filing is received by the department, the commissioner shall disapprove the amended filing or the filing is considered approved.

(d)  The requirements provided under Sections 2151.204 and 2151.207 apply to a hearing conducted under this section.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.211.  Appeal.

(a) A person aggrieved by a decision of the commissioner under this subchapter may appeal the decision not later than the 30th day after the date of the decision.

(b)  An appeal of a commissioner's decision under this subchapter must be made in accordance with Subchapter D, Chapter 36.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.



Section 2151.212.  Hearings By Department.

Subchapter B, Chapter 40, does not apply to this subchapter.

Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. April 1, 2007.


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