28 Tex. Admin. Code § 5.9913 - Authority of Agents and Commissions
(a)
Upon request, an agent may assist any property owners' association or owner of
residential property in the completion and submission of an application for
insurance on forms prescribed by FAIR Plan.
(b) Agents may not hold themselves out as
agents of FAIR Plan.
(c) A
commission must be paid on the basis of a commission schedule set by the
Governing Committee and approved by the commissioner. The commission must be
based on paid gross written premiums and subject to adjustment based on policy
changes and cancellations. The agent must remit the gross premium collected on
a FAIR Plan policy to FAIR Plan, and FAIR Plan will pay the
commission.
(d) FAIR Plan must
establish minimum requirements and performance standards for agents who submit
applications to FAIR Plan or renew business in FAIR Plan. These requirements
and standards must be designed to ensure the efficient transmission of
applications, forms, notices, and money from the agent to FAIR Plan and vice
versa; and ensure the efficient operation of FAIR Plan, and the efficient and
convenient servicing of applicants and policyholders. FAIR Plan may require
that agents demonstrate and certify compliance with these requirements and
standards. FAIR Plan has the power to bar an agent from submitting new
applications to or renewing business in FAIR Plan if the agent refuses to
demonstrate and certify compliance with these requirements and standards or the
agent violates any of these requirements or standards. Such minimum
requirements and performance standards are binding upon any agent as a
condition of the agent's request for an inspection, submission of an
application, receipt of commissions from FAIR Plan, or other act in connection
with FAIR Plan. FAIR Plan may contract with agents who meet FAIR Plan's
standards and may limit applications to FAIR Plan to those agents. FAIR Plan is
not required to appoint agents.
(e)
FAIR Plan may limit communications with agents to website communications
only.
(f) An applicant may apply to
FAIR Plan only through an agent.
Notes
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