Texas Insurance Code 2210.152 – Contents of Plan of Operation
(a) The plan of operation must:
(1) provide for the efficient, economical, fair, and nondiscriminatory administration of the association; and
(2) include:
(A) a plan for the equitable assessment of the members of the association to defray losses and expenses;
(B) underwriting standards;
(C) procedures for accepting and ceding reinsurance;
(D) procedures for obtaining and repaying amounts under any financial instruments authorized under this chapter;
(E) procedures for determining the amount of insurance to be provided to specific risks;
(F) time limits and procedures for processing applications for insurance;
(G) a requirement that a nonresident agent licensed under § 4056.052 may not offer or sell a Texas windstorm and hail insurance policy under this chapter unless the nonresident agent’s state of residence authorizes a resident agent licensed in this state to act in the nonresident agent’s state as an agent for that state’s residual insurer of last resort for windstorm and hail insurance; and
(H) other provisions as considered necessary by the department to implement the purposes of this chapter.
(b) The plan of operation may provide for liability limits for an insured structure and for the corporeal movable property located in the structure.
Terms Used In Texas Insurance Code 2210.152
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Property: means real and personal property. See Texas Government Code 311.005
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(c) The plan of operation shall require the association to use the claim settlement guidelines published by the commissioner under § 2210.578(f) in evaluating the extent to which a loss to insured property is incurred as a result of wind, waves, tidal surges, or rising waters not caused by waves or surges.