§ 4051.354 — AUTOMATIC TERMINATION OF CONTRACT ON WITHDRAWAL FROM STATE OR REDUCTION OF BUSINESS.

Texas § 4051.354

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 4051.354. AUTOMATIC TERMINATION OF CONTRACT ON WITHDRAWAL FROM STATE OR REDUCTION OF BUSINESS. (a) An insurer that withdraws from this state or reduces the insurer's total annual premium volume by at least 75 percent in any year is considered to have terminated the contracts of the insurer's agents. Except as provided by Subsection (b), the insurer shall comply with the requirements of this subchapter.
(b) An insurer described by Subsection (a) shall renew each contract for property and casualty insurance for the affected agent for 24 months from the date of the notice of termination or suspension of the contract.
(c) This section does not apply to the transfer of business from an insurer to another insurer with which the agent has a contract and that:
(1) is under common ownership; and
(2) is admitted to engage in the business of insurance in this state.

Legislative History

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.