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Texas Insurance Code - Not Codified - Article 21.77. Group Marketing Of Motor Vehicle Insurance

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Article 21.77. Group Marketing Of Motor Vehicle Insurance

Art. 21.77. GROUP MARKETING OF MOTOR VEHICLE INSURANCE.                        

Article repealed effective April 1, 2007
	                                                                               

Purpose
	Sec. 1. The purpose of this article is to authorize the 
writing of motor vehicle insurance covering persons over 55 years 
of age in this state on a group marketing basis subject to the 
conditions stated in this article and to set forth the terms and 
conditions under which insurance covering persons over 55 years of 
age on a group marketing basis may be written.

Definitions
	Sec. 2. As used in this article:                                               
	(1)  "Group motor vehicle insurance" means all motor vehicle 
insurance covering persons over 55 years of age that is offered by a 
licensed insurer in this state on a group marketing plan to an 
eligible group as defined in this article.
	(2)  "Group marketing" means the marketing of group motor 
vehicle insurance by a licensed insurer otherwise engaged in 
insuring independent individual risks to an eligible group on a 
guaranteed basis under a single insurance program without 
individual underwriting selection or individual proof of 
insurability.

Eligible Group
	Sec. 3. Any group, to be eligible for group marketing, must 
have been in existence for at least six months before the purchase 
of the insurance and must be a group organized for a purpose other 
than to become an insurance group under this Act, and the group may 
include any group that will be actuarially credible for 
underwriting purposes.

Eligible Members of Group
	Sec. 4. Eligible members of a group shall include all members 
in good standing in the group who are over 55 years of age and lawful 
drivers.

Conditions
	Sec. 5. (a) Group motor vehicle insurance may be issued in 
this state provided the conditions in this section are met.
	(b)  The insurer and the group insured must accept all 
members who are eligible and wish to participate in the plan.
	(c)  To qualify to write the group insurance defined in this 
article, an insurer must also be engaged in the business of writing 
the type of coverage offered for insureds other than group and may 
not be organized solely for the purpose of furnishing coverage to 
such groups.
	(d)  Each member of the group shall be issued a policy on 
forms prescribed for issue in this state by the State Board of 
Insurance.
	(e)  Insurance must be provided by individual policies to 
each member of the group under an agreement whereby the premiums on 
the policies will be paid to the insurer periodically by the group.
	(f)  An insurer may not cancel the insurance of an individual 
member of the group except for the nonpayment of premiums by the 
member or unless the insurance for the entire group is cancelled, 
and in such cases, notice of cancellation as provided in like 
nongroup policies shall be given to each member.
	(g)  The plan shall provide that only those motor vehicles 
owned by members of the group or their spouses jointly or severally 
shall be eligible for coverage.

Maintenance of Records
	Sec. 6. Every insurer writing insurance under a group 
marketing plan shall keep and maintain separate experience data on 
this type of business, including complete records of premium 
income, losses, and expenses so that the experience may be fairly 
ascertained.

Rates
	Sec. 7. Rates for the type of business authorized under this 
article shall be determined, fixed, prescribed, and promulgated in 
the manner provided in Article 5.01, Insurance Code, as amended, so 
far as it is applicable.

Policy Forms
	Sec. 8. All policy forms for insurance written under this 
article shall be prescribed by the commissioner as provided in 
Article 5.06 of this code or filed and in effect as provided in 
Article 5.145 of this code.

Rules
	Sec. 9. The board may make any rules necessary to carry out 
the provisions of this article.

Construction of Other Provisions
	Sec. 10. The provisions of Article 21.02 of this code may not 
be construed to apply to groups participating in group plans 
approved under this article.

Added by Acts 1979, 66th Leg., p. 1028, ch. 461, Sec. 1, eff. Aug. 
27, 1979.

Sec. 8 amended by Acts 2003, 78th Leg., ch. 206, Sec. 21.37, eff. 
June 11, 2003.

Last modified: August 11, 2007