Sec. 12. ASSESSMENT OF ASSOCIATION MEMBERS. (a) In addition to assessments paid as provided by the plan of operation and contributions from the policyholder stabilization reserve fund, if sufficient funds are not available for the sound financial operation of the association, the members of the association shall contribute to the financial requirements of the association on the basis and for the period considered necessary by the board.
(b) A member of the association shall be reimbursed for any assessment or contribution made under this section plus interest at a rate determined by the board.
(c) Pending the recoupment or reimbursement of assessments or contributions paid by a member to the association, the unrepaid balance of the assessments and contributions may be reflected in the books of the member of the association as an admitted asset of the insurer for all purposes including exhibition in the annual statement under Article 6.12 of this code.
(d) To the extent that a member of the association has paid one or more assessments and has not received reimbursement from the association as provided by Subsection (b) of this section, the member is entitled to a credit against its premium taxes under Article 4.10 of this code. The tax credit shall be allowed at a rate of 20 percent a year over a period of five successive years following the year in which the deficit is sustained or over a different number of years at the option of the member.
Structure Texas Statutes
Title 1 - The Insurance Code of 1951
Chapter 21 - General Provisions
Subchapter E. Miscellaneous Provisions
Article 21.49-3c. Texas Nonprofit Organization Liability Insurance Underwriting Association
Section 2. Creation; Composition of the Association; Dissolution
Section 3. Insurer Participation in Association
Section 4. General Responsibility of Association
Section 8. Eligibility for Coverage
Section 9. Application for Coverage
Section 10. Rates and Policy Forms
Section 11. Association Deficit
Section 12. Assessment of Association Members
Section 13. Policyholder Assessment