28 Tex. Admin. Code § 1.1001 - Disclosure of Guaranty Fund Nonparticipation
(a) With the exception enumerated in this
section, each certificate or evidence of coverage and each insurance policy or
contract or application that is delivered or issued for delivery in this state
on or after January 1, 1990, and that is not covered by an insurance guaranty
fund or other solvency protection arrangement authorized by the Insurance Code
shall have the following notice affixed to the first page in no less than
10-point type. DISCLOSURE OF GUARANTY FUND NONPARTICIPATION: In the event the
insurer is unable to fulfill its contractual obligation under this policy or
contract or application or certificate or evidence of coverage, the
policyholder or certificateholder is not protected by an insurance guaranty
fund or other solvency protection arrangement.
(b) Mortgage guaranty insurers are required
to make the disclosure contained in subsection (a) of this section only on all
master policies, but not on individual certificates, delivered or issued for
delivery in this state on or after January 1, 1990.
(c) Each surplus lines contract certificate,
binder, cover note, or other confirmation of surplus lines insurance, including
any application used to bind coverage, shall have affixed to its first page the
notice prescribed by the Insurance Code, Article 1.14-2, §7(a), rather than the
disclosure contained in subsection (a) of this section.
(d) Instead of the language contained in
subsection (a) of this section, insurers issuing variable annuity contracts on
or after January 1, 1990, may affix the following notice to the first page of
such contracts in no less than 10-point type: "This contract is not covered by
an insurance guaranty fund or other solvency protection arrangement because
this contract is a contract under which the risk is borne by the
policyholder."
(e) Fidelity,
surety, and guaranty bonds delivered or issued for delivery in this state on or
after September 1, 1991, need not bear the disclosure notice required by
subsection (a) of this section.
Notes
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