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Texas Insurance Code - INS § 2151.154. Assignment Distribution Plan

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) The plan of operation must include a voluntary, competitive limited assignment distribution plan that allows an authorized insurer to contract directly with a servicing carrier to accept assignments to the servicing carrier by the association.

(b) A servicing carrier must be authorized to write automobile insurance in this state and must:

(1) have written automobile liability insurance in this state for at least five years;  or

(2) be currently engaged as a servicing carrier for assigned risk automobile business in at least one other state.

(c) After notice and hearing, the commissioner may prohibit an insurer from acting as a servicing carrier.

(d) An authorized insurer and a servicing carrier shall determine through negotiation the terms of a contract described by this section, including the buy-out fee.

(e) The governing committee may:

(1) adopt reasonable rules for the conduct of business under a contract described by this section;  and

(2) establish reasonable standards of eligibility for servicing carriers.

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Cite this article: FindLaw.com - Texas Insurance Code - INS § 2151.154. Assignment Distribution Plan - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-2151-154/

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