28 Tex. Admin. Code § 5.9918 - Servicing of Policies
(a) In accordance with
the provisions of §
5.9912(e) of
this subchapter (relating to Governing Committee) the Association shall have
the following options for servicing Association policies:
(1) Contract with one or more member insurers
to service some or all of the policies.
(2) Contract with one or more non-member
insurers to service some or all of the policies;
(3) Contract with one or more private
non-insurers to provide some or all of the servicing of Association
policies;
(4) Contract with one or
more insurance pools for property and/or casualty insurance established by
Texas law to provide some or all of the servicing of Association policies;
and
(5) Service some or all of the
Association policies itself.
(b) No entity, be it a member insurer,
non-member insurer, private non-insurer, or insurance pool, can be compelled to
contract with the Association to service some or all Association
policies.
(c) The servicing
contracts under subsection (a)(1)-(4) of this section shall establish servicing
standards and provide for compensation to be paid to contractors.
(d) The Association may divide the servicing
of an Association policy between two or more persons. For example, the
Association may underwrite an Association policy itself, use a non-insurer
contractor for premium billing and collection, and use insurer contractors to
service policy claims.
(e) In
establishing servicing standards for Association policies, the Association
shall consider:
(1) the accessibility of the
servicing entity for submission of applications by agents;
(2) the ability of the servicing entity to
provide inspections;
(3) the
accessibility of the servicing entity for policyholder inquiries about
underwriting, premium billing, collection, and claims;
(4) the ability of the servicing entity to
service claims; and
(5) the ability
of the servicing entity to provide catastrophe claim services.
(f) The Association may contract
with any insurer admitted to do business in Texas or any other entity holding
the license required to perform such services.
(g) Regardless of the option used by the
Association to service its policies, all policies shall be issued in the name
of the Association.
Notes
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