28 Tex. Admin. Code § 5.4185 - Mandatory Premium Surcharge Collection
(a) Insurers may not pay the surcharges
instead of surcharging their policyholders; however, an insurer may remit a
surcharge prior to collecting the surcharge from its policyholder.
(b) Insurers must collect the contingent
surcharges proportionately as the insurer collects the premium.
(c) The association must collect the
association surcharge in full when due for policies compliant with § 5.4912
(relating to Filing and Issuance of Policy Forms Relating to Premium Surcharges
under Insurance Code §§
2210.612,
2210.613, and
2210.6131) of Division
10 of this subchapter. For policies not yet compliant with § 5.4912, the
association must collect association surcharges in full no later than the
effective date of the policy.
(d)
Under Insurance Code §§
2210.612(d),
2210.613(d),
and
2210.6131(d),
the failure of a policyholder to pay the association surcharge constitutes
failure to pay premium for the purposes of policy cancellation.
(e) Before insurers may apply funds in a
given payment to premiums, they must either:
(1) apply funds in the payment to any
contingent surcharges due in that payment; or
(2) apply funds in the payment to any
contingent surcharges due in that payment in proportion to the amount of
contingent surcharges due in that payment.
Notes
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