Sec. 2201.055. QUALIFICATIONS REGARDING MEMBERSHIP. (a) A risk retention group must be composed of members who are engaged in similar or related businesses or activities with respect to the liability to which those members are exposed by virtue of any related, similar, or common product, trade, business, operations, premises, or services.
(b) A risk retention group must have:
(1) as members, only persons who are provided insurance by the group; or
(2) as the sole owner, an organization that has:
(A) as members, only persons who comprise the membership of the group; and
(B) as owners, only persons who comprise the membership of the group and are provided insurance by the group.
(c) A risk retention group may not exclude a person from membership in the group solely to provide a competitive advantage for group members over that person.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Structure Texas Statutes
Title 10 - Property and Casualty Insurance
Subtitle G - Pools, Groups, Plans, and Self-Insurance
Chapter 2201 - Risk Retention Groups and Purchasing Groups
Subchapter B. Risk Retention Group Qualifications
Section 2201.051. General Qualifications of Risk Retention Group
Section 2201.052. Name of Group
Section 2201.053. Status as Liability Insurer Required
Section 2201.054. Qualifications Regarding Authority of Certain Entities to Engage in Business