2005 Texas Insurance Code CHAPTER 2151. TEXAS AUTOMOBILE INSURANCE PLAN ASSOCIATION

INSURANCE CODE

SUBTITLE G. POOLS, GROUPS, PLANS, AND SELF-INSURANCE

CHAPTER 2151. TEXAS AUTOMOBILE INSURANCE PLAN ASSOCIATION

SUBCHAPTER A. GENERAL PROVISIONS


	§ 2151.001. DEFINITIONS.  In this chapter:                                  
		(1)  "Association" means the Texas Automobile 
Insurance Plan Association.   
		(2)  "Authorized insurer" means an insurer authorized 
by the department to write automobile liability coverage under this 
title.  Except as provided by Section 2251.204, the term does not 
include a county mutual insurance company organized under Chapter 
912.
		(3)  "Insurance" means an insurance policy that meets 
the requirements of Chapter 601, Transportation Code.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           

SUBCHAPTER B. TEXAS AUTOMOBILE INSURANCE PLAN ASSOCIATION


	§ 2151.051. NATURE AND COMPOSITION OF ASSOCIATION.  (a) 
The Texas Automobile Insurance Plan Association is a nonprofit 
corporate body composed of all authorized insurers.
	(b)  Each authorized insurer must be a member of the 
association as a condition of the insurer's authority to write 
automobile liability insurance in this state.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.052. AUTHORITY OF GOVERNING COMMITTEE.  The 
association is administered by a governing committee under a plan 
of operation.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.053. MEMBERSHIP OF GOVERNING COMMITTEE.  The 
governing committee is composed of 15 members selected as follows:
		(1)  eight members who represent the interests of 
insurers, elected by the association members according to a method 
the members determine;
		(2)  five public members, nominated by the office of 
public insurance counsel and selected by the commissioner;  and
		(3)  two members who are general property and casualty 
agents, as required by the plan of operation.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.054. ELIGIBILITY TO SERVE AS INSURER 
REPRESENTATIVE.  To be eligible to serve on the governing committee 
as a representative of insurers, an individual must be a full-time 
employee of an authorized insurer.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.055. INELIGIBILITY TO SERVE AS PUBLIC MEMBER.  An 
individual may not serve on the governing committee as a public 
member if the individual, another individual related to that 
individual within the second degree by consanguinity or affinity, 
or another individual residing in the same household with that 
individual:
		(1)  is required to be registered or licensed under 
this code or another insurance law of this state;
		(2)  is employed by or acts as a consultant to a person 
required to be registered or licensed or required to hold a 
certificate of authority under this code or another insurance law 
of this state;
		(3)  is the owner of, has a financial interest in, or 
participates in the management of an organization required to be 
registered or licensed or required to hold a certificate of 
authority under this code or another insurance law of this state;
		(4)  is an officer, employer, or consultant of an 
association in the field of insurance;  or
		(5)  is required to register as a lobbyist under 
Chapter 305, Government Code.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.056. IMMUNITY FROM LIABILITY.  (a) The 
association, a member of the governing committee, or an employee of 
the association is not personally liable for:
		(1)  an act performed in good faith within the scope of 
the person's authority as determined under this chapter or the plan 
of operation;  or
		(2)  damages occasioned by the person's official act or 
omission except an act or omission that is corrupt or malicious.
	(b)  The association shall provide counsel to defend an 
action brought against a member of the governing committee or an 
employee because of the person's official act or omission 
regardless of whether the person has terminated service with the 
association when the action is instituted.
	(c)  This section is cumulative of and does not affect or 
modify a common law or statutory privilege or immunity.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           

SUBCHAPTER C. POWERS AND DUTIES OF ASSOCIATION


	§ 2151.101. POWERS OF NONPROFIT CORPORATION.  (a) The 
association has the powers granted to a nonprofit corporation under 
the Business Organizations Code.

Text of subsec. (b) effective until December 31, 2009
	(b)  Notwithstanding Subsection (a), on or before December 
31, 2009, the association has the powers granted to a nonprofit 
corporation under the Texas Non-Profit Corporation Act (Article 
1396-1.01 et seq., Vernon's Texas Civil Statutes) or the Business 
Organizations Code, as applicable.

Text of subsec. (c) effective until December 31, 2009
	(c)  This subsection and Subsection (b) expire December 31, 
2009.            

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.102. ASSIGNMENT OF INSURANCE;  ELIGIBILITY.  (a) 
The association shall provide for the assignment of insurance to an 
authorized insurer for a person required by Chapter 601, 
Transportation Code, to show proof of financial responsibility for 
the future.
	(b)  An applicant is not eligible for insurance through the 
association unless the applicant and the servicing agent certify as 
part of the application to the association that the applicant has 
been rejected for insurance by at least two insurers that are 
authorized to engage in business in this state and that are writing 
automobile insurance in this state.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.103. ASSESSMENTS.  (a) The association may assess 
authorized insurers to provide money to operate the association.
	(b)  The amount assessed against an authorized insurer must 
be in proportion to the insurer's writing of automobile liability 
insurance in this state.
	(c)  The association may bring an action to collect an 
assessment against an authorized insurer that does not pay the 
assessment within a reasonable time.  In addition, the association 
may report an authorized insurer's failure to pay the assessment to 
the commissioner.  The commissioner may institute a disciplinary 
action against the insurer under Chapter 82. 

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           

SUBCHAPTER D. PLAN OF OPERATION


	§ 2151.151. CONTENTS OF PLAN OF OPERATION;  
AMENDMENTS.  (a) The plan of operation must:
		(1)  provide for the efficient, economical, fair, and 
nondiscriminatory administration of the association;  and
		(2)  provide a means by which insurance may be provided 
in accordance with Section 2151.102(a).
	(b)  Subject to the commissioner's approval, the governing 
committee may amend the plan of operation.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.152. CORRECTIVE ACTION TO PLAN OF OPERATION.  If 
the commissioner at any time believes that any part of the plan of 
operation is inconsistent with the purposes of Chapter 601, 
Transportation Code, the commissioner shall notify the governing 
committee in writing so that the governing committee may take 
corrective action.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.153. INCENTIVE PROGRAMS.  (a) The plan of 
operation must include incentive programs to encourage authorized 
insurers to write insurance on a voluntary basis and to minimize the 
use of the association as a means to obtain insurance.
	(b)  One incentive program must target underserved 
geographic areas, which the commissioner by rule shall designate.  
In designating underserved areas, the commissioner shall consider 
with respect to an area:
		(1)  the availability of insurance;                                           
		(2)  the number of uninsured drivers;                                         
		(3)  the number of drivers insured through the 
association;  and            
		(4)  any other relevant factor.                                               
	(c)  The incentive programs are effective on the 
commissioner's approval.    

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.154. ASSIGNMENT DISTRIBUTION PLAN.  (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 insurer to accept assignments to 
the servicing insurer by the association.
	(b)  A servicing insurer 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 insurer 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 insurer.
	(d)  An authorized insurer and a servicing insurer 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 insurers.  

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           

SUBCHAPTER E. RATES FOR INSURANCE;  HEARING


	§ 2151.201. RATE STANDARDS.  Rates for insurance provided 
under this chapter must be:
		(1)  just, reasonable, adequate, not excessive, not 
confiscatory, and not unfairly discriminatory for the risks to 
which the rates apply;  and
		(2)  sufficient to carry all claims to maturity and 
meet the expenses incurred in the writing and servicing of the 
business.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.202. RATE FILINGS.  (a) The association shall file 
annually with the department rates to be charged for insurance 
provided through the association for approval by the commissioner.
	(b)  The association may not file rates under this section 
more than once in any 12-month period.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.203. RECORDING AND REPORTING OF PREMIUM, LOSS, AND 
EXPENSE EXPERIENCE.  (a) The commissioner shall adopt reasonable 
rules and statistical plans for the recording and reporting of 
premium, loss, and expense experience and other required data by 
each authorized insurer.  The premium, loss, and expense experience 
must be reported separately for business assigned to the insurer.
	(b)  Each authorized insurer shall use the statistical plans 
adopted under this section to record and report premium, loss, and 
expense experience and other required data in accordance with the 
rules adopted by the commissioner.
	(c)  In approving rates under this subchapter, the 
commissioner shall consider the reports collected under the 
statistical plan regarding aggregated premiums earned and losses 
and expenses incurred in the writing of automobile insurance 
through the association.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.204. NOTICE OF FILING.  (a) The department shall 
file with the secretary of state for publication in the Texas 
Register notice that a filing has been made under Section 2151.202 
not later than the seventh day after the date the filing is received 
by the department.
	(b)  The notice must include information relating to:                          
		(1)  the availability of the filing for public 
inspection at the department during regular business hours;
		(2)  the procedures for obtaining copies of the filing;                       
		(3)  procedures for making written comments related to 
the filing;  and     
		(4)  the time, place, and date of the hearing scheduled 
under Section 2151.206.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.205. OPPORTUNITY TO REVIEW FILING.  Before 
approving, disapproving, or modifying a filing made under Section 
2151.202, the commissioner must provide to all interested persons a 
reasonable opportunity to:
		(1)  review the filing;                                                       
		(2)  obtain a copy of the filing on payment of any 
legally required copying cost;  and
		(3)  submit to the commissioner written comments, 
analyses, or information related to the filing.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.206. HEARING ON FILING.  (a) Not later than the 
45th day after the date the department receives a filing required by 
Section 2151.202, the commissioner shall schedule a hearing at 
which interested persons may present written or oral comments 
relating to the filing.
	(b)  The association, the public insurance counsel, and any 
other interested person or entity that submits proposed changes or 
actuarial analyses may ask questions of any person testifying at 
the hearing.
	(c)  A hearing held under this section is not a contested 
case hearing under Chapter 2001, Government Code.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.207. ACTION OF COMMISSIONER ON FILING.  (a) After 
the conclusion of the hearing under Section 2151.206, the 
commissioner shall approve, disapprove, or modify the filing in 
writing.
	(b)  If the commissioner disapproves a filing, the 
commissioner shall state in writing the reasons for the disapproval 
and the criteria to be met by the association to obtain approval.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.208. AMENDED FILING.  The association may file 
with the commissioner an amended filing to comply with the 
commissioner's comments not later than the 10th day after the date 
the association receives the commissioner's written disapproval. 

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.209. OPPORTUNITY TO REVIEW AMENDED FILING.  Before 
approving or disapproving an amended filing, the commissioner must 
provide to all interested persons a reasonable opportunity, in the 
same manner an opportunity is provided under Section 2151.205, to:
		(1)  review the amended filing;                                               
		(2)  obtain a copy of the amended filing on payment of 
any legally required copying cost;  and
		(3)  submit to the commissioner written comments or 
information related to the amended filing.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.210. HEARING ON AMENDED FILING.  (a) The 
commissioner may hold a hearing in the manner provided by Section 
2151.206 not later than the 20th day after the date the department 
receives an amended filing.
	(b)  Not later than the 10th day after the date the hearing on 
the amended filing is concluded, the commissioner shall approve or 
disapprove the amended filing.
	(c)  Not later than the 30th day after the date the amended 
filing is received by the department, the commissioner shall 
disapprove the amended filing or the filing is considered approved.
	(d)  The requirements provided under Sections 2151.204 and 
2151.207 apply to a hearing conducted under this section.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.211. APPEAL.  (a) A person aggrieved by a decision 
of the commissioner under this subchapter may appeal the decision 
not later than the 30th day after the date of the decision.
	(b)  An appeal of a commissioner's decision under this 
subchapter must be made in accordance with Subchapter D, Chapter 
36. 

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.           


	§ 2151.212. HEARINGS BY DEPARTMENT.  Subchapter B, 
Chapter 40, does not apply to this subchapter.

Added by Acts 2005, 79th Leg., ch. 727, § 2, eff. April 1, 2007.