Sec. 2151.154. ASSIGNMENT DISTRIBUTION PLAN. (a) The plan of operation must include a voluntary, competitive limited assignment distribution plan that allows an authorized insurer to contract directly with a servicing carrier to accept assignments to the servicing carrier by the association.
(b) A servicing carrier must be authorized to write automobile insurance in this state and must:
(1) have written automobile liability insurance in this state for at least five years; or
(2) be currently engaged as a servicing carrier for assigned risk automobile business in at least one other state.
(c) After notice and hearing, the commissioner may prohibit an insurer from acting as a servicing carrier.
(d) An authorized insurer and a servicing carrier shall determine through negotiation the terms of a contract described by this section, including the buy-out fee.
(e) The governing committee may:
(1) adopt reasonable rules for the conduct of business under a contract described by this section; and
(2) establish reasonable standards of eligibility for servicing carriers.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.058, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.058, eff. September 1, 2007.
Last modified: September 28, 2016