§ 2209.102 — CONTENTS OF PLAN OF OPERATION.

Texas § 2209.102

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 2209.102. CONTENTS OF PLAN OF OPERATION. (a) Subject to the requirements of this chapter, the plan of operation must include:
(1) the organizational structure of the pool, including:
(A) the method of selecting the board;
(B) the board's method of procedure and operation; and
(C) a summary of the method for managing and operating the pool;
(2) a description of the contributions and other financial arrangements necessary to cover the initial expenses of the pool and estimates, supported by statistical data, of the amounts of those contributions or other financial arrangements;
(3) underwriting standards and procedures for evaluating risks, including a requirement that all participants in the pool receive ongoing training in the methods of controlling liability losses;
(4) procedures for purchasing reinsurance;
(5) methods, procedures, and guidelines for:
(A) establishing premium rates for and maximum limits of excess coverage available from the pool;
(B) negotiating and paying settlements, defending claims, and paying judgments; and
(C) managing and investing the fund;
(6) procedures for processing and paying claims;
(7) methods and procedures for defraying losses and expenses of the pool; and
(8) guidelines for nonrenewal of coverage.
(b) The plan of operation may include any matter relating to the organization and operation of the pool or to the pool's finances.

Legislative History

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 2, eff. April 1, 2007.