28 Tex. Admin. Code § 5.9922 - Relationship with Member Insurers

(a) Each member insurer shall participate in the writings, expenses, assessments, profits and losses of the Association in the same proportion as a member insurer's net direct residential property insurance premiums written in Texas bears to the aggregate net direct residential property insurance premiums written by all member insurers in Texas as determined by the Texas residential property statistical plan. The Association, however, may adopt depopulation plans under which insurers who voluntarily write residential property insurance or take risks out of the Association will receive a credit.

(b) In response to a data call developed by the department, all members shall file annually by June 1, their residential property insurance written premiums for the prior calendar year with the department. The department shall provide this information filed by all members to the Association. The Association shall use this information to calculate each member's participation under subsection (a) of this section and to calculate any assessments under § 5.9923 of this subchapter (relating to Assessments, Recoupments, Member Insolvency and Withdrawal).

(c) In order to facilitate the commencement of operations immediately after the adoption of this plan of operation, all members, if requested by the Association, shall file with the department their residential property insurance written premiums for calendar year 2001. Any data so requested shall be submitted by the members to the department within 30 days after the department has mailed the request. Any such data collected by the department, in coordination with other 2001 statistical/financial data for members that the department has, shall be provided to the Association upon request. The Association may use this data to calculate initial assessment percentages for all members. Each member shall be required to pay any start-up assessment request based on these initial percentages within 30 days after receipt of the assessment request. Any member company may challenge the accuracy of a start-up assessment request after timely paying the start-up assessment request under protest. Payment of the disputed amount is a required predicate to challenging the accuracy of the start-up calculation. Any subsequent adjustments made to start-up assessment payments under protest shall be paid by (or remitted to) the challenging member company within 30 days after the agreement or final order that establishes the correct start-up assessment request amount. The Association may issue more than one start-up assessment request using the initial assessment percentages until new percentages can be calculated based on data for the year ended December 31, 2002 and thereafter. Time frames and procedures for payment of assessments other than a start-up assessment are governed by other provisions of this plan of operation.

(d) There shall be an annual meeting of the Association and its member insurers at a time and place fixed by the Governing Committee.

(e) A special meeting of the Association and its member insurers may be called by the Governing Committee at such time and place designated by the Governing Committee.

(f) Ten days notice of an annual or special meeting with member insurers shall be given in writing by the Governing Committee to member insurers. Notice of any meeting shall be accompanied by an agenda for the meeting.

Notes

28 Tex. Admin. Code § 5.9922

The provisions of this §5.9922 adopted to be effective May 28, 2003, 28 TexReg 4153