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Texas Insurance Code - Not Codified - Article 21.49-7. Self-Insurance Trust For Savings And Loan Associations

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Article 21.49-7. Self-Insurance Trust For Savings And Loan Associations

Art. 21.49-7. SELF-INSURANCE TRUST FOR SAVINGS AND LOAN 
ASSOCIATIONS.        

Article repealed effective April 1, 2007
	                                                                               

Definitions
	Sec. 1. In this article:                                                       
	(1)  "Savings and loan association" means a savings and loan 
association chartered under federal or state law whose principal 
office is located in this state.
	(2)  "Board" means the State Board of Insurance.                               
	(3)  "Trustees" means the trustees of a self-insurance trust 
created under this article.

Creation of Trust;  Coverage
	Sec. 2. (a) Two or more savings and loan associations may 
create a trust under this article to provide insurance and 
indemnity coverage for its members and their officers and 
directors.
	(b)  Insurance and indemnity coverage provided by the trust 
shall be limited to savings and loan blanket bonds covering losses 
resulting from dishonest acts and criminal acts of employees or 
losses resulting from robbery or both.

Organizing Trust;  Trust Plan
	Sec. 3. Before organizing and operating a trust under this 
article, the savings and loan associations proposing to organize 
the trust shall select trustees to administer the trust and shall 
prepare a detailed plan of organization and operation in the form 
and manner prescribed by the board.  The proposed plan shall be 
submitted to the board for examination, suggested changes, and 
final approval.  After final approval the plan may be amended with 
the approval of the board.

Condition for Plan Approval
	Sec. 4. The board shall approve a proposed plan under this 
article only if it is satisfied that the trust has and will continue 
to possess the ability to pay valid claims made to it.

Trust Fund
	Sec. 5. (a) The trustees of the trust shall create a trust 
fund to pay claims made under the coverage provided by the trust.
	(b)  The trustees shall administer and control the trust fund 
and shall pay claims and invest money of the trust fund as provided 
by the plan.

Trust Participation
	Sec. 6. A savings and loan association that is one of the 
associations organizing the trust may participate in the trust by 
entering into contracts or agreements with the trustees for 
insurance and indemnity coverage that the trust may provide and 
paying the required contribution to the trust fund.

Trustee Determinations
	Sec. 7. The trustees shall determine in accordance with the 
plan the amount of coverage to be provided savings and loan 
associations participating in the trust and the amount of 
contributions to be paid by those associations.

Staff and Consultants;  Salaries and Costs
	Sec. 8. (a) The trustees shall employ appropriate 
professional staff and consultants for management of the trust 
program.
	(b)  The trustees shall pay the salaries of professional 
staff and consultants and other costs of administering the trust 
program from the trust fund.  The total amount paid for payment of 
salaries and administration may not exceed an amount fixed by the 
board, which amount may not exceed 35 percent of the total amount of 
money in the trust fund in any one year.

Board Supervision
	Sec. 9. A trust whose plan is approved by the board under this 
article is subject to the continuing supervision of the board 
relating to its solvency and to approval of its policy forms.  The 
board may set certain minimum requirements to ensure the capability 
of the trust to satisfy its contractual obligations.

Rules
	Sec. 10. The board may adopt reasonable rules that are 
necessary to carry out this article.

Application of Insurance Laws
	Sec. 11. A trust created under this article is not engaged in 
the business of insurance under this code and under other laws of 
this state, and this code, including the Texas Property and 
Casualty Insurance Guaranty Act (Article 21.28-C, Vernon's Texas 
Insurance Code), is inapplicable to a trust organized and operated 
under this article.

Added by Acts 1985, 69th Leg., ch. 229, eff. June 3, 1985.                    

Last modified: August 11, 2007