Sec. 2213.051. CREATION OF BANK SELF-INSURANCE TRUST; COVERAGE. (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.
(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.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Section: Previous 2213.001 2213.002 2213.003 2213.051 2213.052 2213.053 2213.054 2213.055 2213.056 NextLast modified: September 28, 2016