Sec. 942.151. SUBSCRIBER LIABILITY FOR CERTAIN CONTINGENT PREMIUMS. (a) Except as provided by Section 942.152 and Subsection (b), if a certificate of authority is issued as provided by Subchapter C, the power of attorney or other authorization executed by the subscribers must provide that, in addition to the premium or premium deposit specified in the reciprocal or interinsurance contract, the subscribers are liable for a contingent premium equal to one additional annual premium or premium deposit.
(b) If the subscribers and their attorney in fact are authorized to issue reciprocal or interinsurance contracts for cash premiums only, the power of attorney or other authorization may waive all contingent premiums.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges
Chapter 942 - Reciprocal and Interinsurance Exchanges
Subchapter D. Operation, Powers, and Duties of Exchange
Section 942.151. Subscriber Liability for Certain Contingent Premiums
Section 942.152. Subscriber Limited Liability Based on Certain Minimum Capital and Surplus
Section 942.153. Prior Authority Not Affected
Section 942.154. Statements Relating to Indemnity Amounts
Section 942.155. Financial Requirements
Section 942.156. Issuance of Fidelity and Surety Bond Insurance; Deposit Required
Section 942.157. Transactions Between Certain Insurers and Affiliated Exchanges