The plan of operation must set out how the association will operate, including insurer participation, credits for participating insurers, binding eligible risks, service standards, assessments, underwriting standards, reinsurance, and other necessary procedures.
Sec. 2211.054. CONTENTS OF PLAN OF OPERATION. The plan of operation must: (1) provide for a nonprofit association to issue residential property insurance and, if applicable, property owners' association insurance under this chapter and distribute the losses and expenses in writing that insurance in this state; (2) provide that all insurers that write residential property insurance shall participate in the association in accordance with Sections 2211.101(b) and (c); (3) provide that a participating insurer is entitled to receive credit in accordance with Section 2211.101(d); (4) provide for the immediate binding of eligible risks; (5) provide for the use of premium installment payment plans, adequate marketing, and service facilities; (6) provide for the establishment of reasonable service standards; (7) provide procedures for efficient, economical, fair, and nondiscriminatory administration of the association; (8) provide procedures for determining the net level of participation required for each insurer in the association; (9) provide for the use of deductibles and other underwriting devices; (10) provide for assessment of all members in amounts sufficient to operate the association; (11) establish maximum limits of liability to be placed through the program; (12) establish commissions to be paid to the insurance agents submitting applications; (13) provide that the association issue policies in the association's own name; (14) provide reasonable underwriting standards for determining insurability of a risk; (15) provide procedures for the association to assume and cede reinsurance; and (16) provide any other procedure or operational matter the governing committee or the commissioner considers necessary. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007. Amended by: Acts 2023, 88th Leg., R.S., Ch. 44 (H.B. 998), Sec. 3, eff. September 1, 2023.