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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 2201. RISK RETENTION GROUPS AND PURCHASING GROUPS |
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Subchapter B. RISK RETENTION GROUP QUALIFICATIONS |
Sec. 2201.055. QUALIFICATIONS REGARDING MEMBERSHIP
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(a) A risk retention group must be composed of members who are engaged in similar or related businesses or activities with respect to the liability to which those members are exposed by virtue of any related, similar, or common product, trade, business, operations, premises, or services.
(b) A risk retention group must have:
(1) as members, only persons who are provided insurance by the group; or
(2) as the sole owner, an organization that has:
(A) as members, only persons who comprise the membership of the group; and
(B) as owners, only persons who comprise the membership of the group and are provided insurance by the group.
(c) A risk retention group may not exclude a person from membership in the group solely to provide a competitive advantage for group members over that person.