Texas § 2210.6132 CONTINGENT SOURCE OF PAYMENT FOR CLASS 2 AND CLASS 3 PUBLIC SECURITIES.

Texas Statutes

§ 2210.6132 — CONTINGENT SOURCE OF PAYMENT FOR CLASS 2 AND CLASS 3 PUBLIC SECURITIES.

Texas § 2210.6132

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This text of Texas § 2210.6132 (CONTINGENT SOURCE OF PAYMENT FOR CLASS 2 AND CLASS 3 PUBLIC SECURITIES.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 2210.6132 (2026).

Text

Text of section effective until September 01, 2027 Sec. 2210.6132. CONTINGENT SOURCE OF PAYMENT FOR CLASS 2 AND CLASS 3 PUBLIC SECURITIES.

(a)The commissioner may determine, in consultation with the board and the authority, that:

(1)the authority is unable to issue Class 2 or Class 3 public securities to be payable under Section 2210.613 or 2210.6131 , as applicable; or

(2)the issuance of Class 2 or Class 3 public securities to be payable under Section 2210.613 or 2210.6131 , as applicable, is financially unreasonable for the association.

(b)If the commissioner makes a determination under Subsection (a), the commissioner shall order the Class 2 or Class 3 public securities, as applicable, to be paid by a premium surcharge assessed by each insurer, the association, and the Texas FAIR Pl

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Text of section effective until September 01, 2027
Sec. 2210.6132. CONTINGENT SOURCE OF PAYMENT FOR CLASS 2 AND CLASS 3 PUBLIC SECURITIES. (a) The commissioner may determine, in consultation with the board and the authority, that:
(1) the authority is unable to issue Class 2 or Class 3 public securities to be payable under Section 2210.613 or 2210.6131 , as applicable; or
(2) the issuance of Class 2 or Class 3 public securities to be payable under Section 2210.613 or 2210.6131 , as applicable, is financially unreasonable for the association.
(b) If the commissioner makes a determination under Subsection (a), the commissioner shall order the Class 2 or Class 3 public securities, as applicable, to be paid by a premium surcharge assessed by each insurer, the association, and the Texas FAIR Plan Association on all policyholders of policies that are in effect on or after the 180th day after the date the commissioner issues the order. The premium surcharge must be set in an amount sufficient to pay all debt service not already covered by available funds and all related expenses on the public securities.
(c) The premium surcharge under this section shall be assessed on all policyholders of policies that cover insured property that is located in a catastrophe area, including automobiles principally garaged in a catastrophe area. The premium surcharge shall be assessed on each Texas windstorm and hail insurance policy and each property and casualty policy, including an automobile insurance policy, issued for automobiles and other property located in the catastrophe area. A premium surcharge under Subsection (b) applies to:
(1) all policies written under the following lines of insurance:
(A) fire and allied lines;
(B) farm and ranch owners;
(C) residential property insurance;
(D) private passenger automobile liability and physical damage insurance; and
(E) commercial automobile liability and physical damage insurance; and
(2) the property insurance portion of a commercial multiple peril insurance policy.

Legislative History

Added by Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900 ), Sec. 27, eff. September 1, 2015. Repealed by Acts 2025, 89th Leg., R.S., Ch. 895 (H.B. 3689 ), Sec. 1.17(2), eff. September 1, 2027.