Texas Occupations Code - OCC § 1303.153. Security Required
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(a) Except as provided by Subsection (d), as a guarantee that a residential service company will meet its obligations to its contract holders, the company shall maintain with the commission a bond or other security accepted by the commission.
(b) A bond posted as security must:
(1) be issued by a carrier admitted in this state;
(2) be continuous;
(3) be cancellable by the surety only after not less than 90 days' notice to the commission; and
(4) recognize that the obligation continues for the terms of the residential service contracts written by the residential service company while the bond is in force.
(c) Any security provided under this section in a form other than a bond must be convertible to cash by the commission for the benefit of contract holders in this state, without resort to the courts, if the commission determines that the residential service company is in default of its financial obligations to the contract holders. Any amount remaining after all contract holders' claims are paid must be returned to the residential service company not later than the 120th day after the date the last outstanding residential service contract expires.
(d) This section does not apply to a residential service company that uses a reimbursement insurance policy to insure its outstanding residential service contracts written in this state in accordance with Section 1303.151(b).
Cite this article: FindLaw.com - Texas Occupations Code - OCC § 1303.153. Security Required - last updated April 14, 2021 | https://codes.findlaw.com/tx/occupations-code/occ-sect-1303-153.html
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