Texas Statutes
Article 21.49-3c. Texas Nonprofit Organization Liability Insurance Underwriting Association
Section 14. Policyholder Stabilization Reserve Fund

Sec. 14. POLICYHOLDER STABILIZATION RESERVE FUND. (a) The policyholder stabilization reserve fund is created and shall be administered as provided by this article and the plan of operation.
(b) Each policyholder shall pay to the fund annually an amount determined annually by the board of directors as provided by the plan of operation.
(c) The charge shall be computed in proportion to each premium payment due for liability insurance through the association.
(d) The policy shall state the charge separately. The charge is not part of the premium and is not subject to premium taxes, servicing fees, acquisition costs, or any other similar charges.
(e) The association shall collect money for and administer the fund, and the fund shall be treated as a liability of the association along with and in the same manner as premium and loss reserves.
(f) The board of directors shall value the fund annually at the close of the last preceding year.
(g) The association shall continue to collect the charge until the time the net balance of the fund is not less than the projected sum of premiums to be written in the year following the valuation date under Subsection (f) of this section.
(h) All charges collected from policyholders shall be credited to the fund, and the fund shall be charged with any deficit from operations of the association during the previous year.

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