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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 10. PROPERTY AND CASUALTY INSURANCE |
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Subtitle G. POOLS, GROUPS, PLANS, AND SELF-INSURANCE |
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Chapter 2151. TEXAS AUTOMOBILE INSURANCE PLAN ASSOCIATION |
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Subchapter D. PLAN OF OPERATION |
Sec. 2151.154. ASSIGNMENT DISTRIBUTION PLAN
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(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.