Texas Insurance Code 2203.053 – Plan of Operation
(a) The association operates under a plan of operation adopted by the commissioner.
(b) The plan of operation must:
(1) provide for economic, fair, and nondiscriminatory administration;
(2) provide for the prompt and efficient provision of medical liability insurance; and
(3) contain other provisions, including provisions relating to:
(A) the establishment of necessary facilities;
(B) the association’s management;
(C) the assessment of members and policyholders to defray losses and expenses;
(D) the administration of the policyholder’s stabilization reserve funds;
(E) commission arrangements;
(F) reasonable and objective underwriting standards;
(G) the acceptance, assumption, and cession of reinsurance;
(H) the appointment of servicing insurers; and
(I) procedures for determining amounts of insurance to be provided by the association.
Terms Used In Texas Insurance Code 2203.053
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
(c) The plan of operation must direct that any revenue exceeding expenditures that remains in the association’s funds at the close of the association’s fiscal year, after the association reimburses members’ contributions in accordance with Section 2203.255(a), be added to the association’s reserves.