(a) A group or association of banks or bankers, composed of any number of members, may create a bank self-insurance trust to self-insure banks that are members of the group or association, or that have any officers who are members of the group or association, against losses described by this section.
(b) The bank self-insurance trust may self-insure a bank described by Subsection (a) against losses resulting from:
(1) dishonest acts and criminal acts of employees;
(2) a robbery or other act commonly included within a bank’s bond coverage; and
(3) indemnification for a wrongful act committed by a director, officer, or employee of a member of the group or association, subject to the limitations under Chapter 8, Business Organizations Code.

Terms Used In Texas Insurance Code 2213.051

  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC

(c) The trustees shall determine, according to the plan, the amount of coverage to be provided to a bank participating in the bank self-insurance trust.
(d) Expired.
(e) Expired.

  Previous section
Next section  
 Subchapter B Contents