Texas Insurance Code - Section 463.256. Alternative Policy
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§ 463.256. ALTERNATIVE POLICY. (a) An alternative policy
issued by the association must:
(1) be approved by the commissioner;
(2) provide coverage of a kind that the association
determines is similar to the coverage of the policy issued by the
impaired or insolvent insurer;
(3) contain at least the minimum provisions required
by the statutes of this state; and
(4) provide benefits that are not unreasonable in
relation to the premium charged.
(b) The association shall set the premium according to a
table of rates the association adopts. The premium:
(1) must reflect:
(A) the amount of insurance provided; and
(B) each insured's age and class of risk; and
(2) may not reflect any change in an insured's health
occurring after the original policy was most recently underwritten.
(c) The association may adopt various kinds of alternative
policies to issue at a later date without regard to any particular
impairment or insolvency.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 463.204 463.205 463.251 463.252 463.253 463.254 463.255 463.256 463.257 463.258 463.259 463.260 463.261 463.301 463.302
Last modified: August 11, 2007
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