Texas Insurance Code Title 10, Chapter 2211 - Fair Plan

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 2211.001 - Definitions
  In this chapter: (1) "Association" means the FAIR Plan Association established under this chapter. (2) "FAIR Plan" means a Fair Access to Insurance Requirements Plan...
• Texas Section 2211.002 - Immunity
  Liability does not exist on the part of, and a cause of action does not arise against, an insurer, the inspection bureau, the association, the...

SUBCHAPTER B ESTABLISHMENT AND ADMINISTRATION OF FAIR PLAN

• Texas Section 2211.003 - Appeals; Judicial Review
  (a) An applicant or affected insurer is entitled to appeal to the association. The association's decision may be appealed to the commissioner not later than...
• Texas Section 2211.051 - Establishment Of Fair Plan
  The commissioner may establish a Fair Access to Insurance Requirements Plan to deliver residential property insurance to residents of this state in underserved areas if...
• Texas Section 2211.052 - Administration Of Fair Plan; Composition Of Governing Committee
  (a) The governing committee shall administer the FAIR Plan under a plan of operation. (b) The governing committee is composed of 11 members appointed by...
• Texas Section 2211.0521 - Meetings Of Governing Body
  (a) Notwithstanding Chapter 551, Government Code, or any other law, members of the governing committee may meet by telephone conference call, video conference, or other...
• Texas Section 2211.053 - Amendments To Plan Of Operation
  (a) The governing committee may, on the committee's own initiative or at the commissioner's request, propose amendments to the plan of operation. (b) Amendments to...
• Texas Section 2211.054 - Contents Of Plan Of Operation
  The plan of operation must: (1) provide for a nonprofit association to issue residential property insurance under this chapter and distribute the losses and expenses...
• Texas Section 2211.055 - Association Duties With Respect To Policies
  (a) The association may, for FAIR Plan purposes only: (1) issue insurance policies and endorsements to those policies in the association's own name or a...
• Texas Section 2211.056 - Filing And Approval Of Rates
  (a) The association shall file with the commissioner for approval the proposed rates and supplemental rate information to be used in connection with the issuance...
• Texas Section 2211.057 - Powers Of Commissioner
  The commissioner is charged with the authority to supervise the association and the inspection bureau. The commissioner also has the power to: (1) examine the...
• Texas Section 2211.058 - Annual Operating Report
  (a) Not later than March 31 of each year, the association shall compile and submit to the commissioner an operating report covering the preceding calendar...

SUBCHAPTER C INSURER PARTICIPATION IN FAIR PLAN

• Texas Section 2211.059 - Assets Of Association
  On dissolution of the association, all assets of the association shall be deposited in the general revenue fund. Added by Acts 2007, 80th Leg., R.S.,...
• Texas Section 2211.101 - Coverage Provided To Insureds In Underserved Area
  (a) In accordance with the plan of operation, the association shall develop and administer a program for participation by each insurer that writes residential property...
• Texas Section 2211.102 - Liability Of Insurers To Association; Assessments
  The participating insurers are liable to the association as provided by this chapter and the plan of operation for the expenses and liabilities incurred by...
• Texas Section 2211.103 - Recomputation Of Reimbursement Ratios
  If a participating insurer fails to pay an assessment because of the insurer's insolvency, the association shall immediately recompute the reimbursement ratios to exclude from...
• Texas Section 2211.104 - Additional Assessment In Event Of Deficit; Premium Surcharge Authorized
  (a) If the association incurs a deficit, the association, at the commissioner's direction, shall: (1) request the issuance of public securities as authorized by Subchapter...

SUBCHAPTER D COVERAGE PROVIDED TO INSUREDS

• Texas Section 2211.105 - Retention And Use Of Profits By Association
  (a) The association shall retain any profits of the association to be used for the purposes of the association. (b) The association: (1) shall use...
• Texas Section 2211.151 - Mandatory Coverage Provided To Certain Insureds
  The association shall make residential property insurance available to each applicant in an underserved area whose property is insurable in accordance with reasonable underwriting standards...
• Texas Section 2211.152 - Designation Of Area As Underserved
  The commissioner by rule shall designate the areas determined to be underserved. In determining which areas to designate as underserved, the commissioner shall consider the...
• Texas Section 2211.153 - Inspection Bureau
  The association, with the approval of the commissioner, shall designate one or more organizations as the inspection bureau. The inspection bureau shall: (1) make inspections...
• Texas Section 2211.154 - Property Inspection
  (a) A person who has an insurable interest in real or tangible personal property at a fixed location in an underserved area and who, after...
• Texas Section 2211.155 - Inspection Results; Reinspection
  (a) If, after an inspection, the inspection bureau determines that residential property meets the underwriting standards established in the plan of operation, the applicant must...
• Texas Section 2211.156 - Certain Coverage Excluded
  The FAIR Plan may not provide windstorm and hail insurance coverage for a risk eligible for that coverage under Chapter 2210. Added by Acts 2005,...

SUBCHAPTER E REVENUE BOND PROGRAM

• Texas Section 2211.157 - Coverage For Certain Windstorm And Hail Damage; Coverage For Certain Property Located Over Water
  (a) A policy issued by the association may include coverage against loss or damage by windstorm or hail for: (1) a building or other structure...
• Texas Section 2211.201 - Purpose
  The legislature finds that issuing public securities to provide a method to raise funds to provide residential property insurance in this state through the association...
• Texas Section 2211.202 - Definitions
  In this subchapter: (1) "Board" means the board of directors of the Texas Public Finance Authority. (2) "Bond" means a debt instrument or other public...
• Texas Section 2211.203 - Applicability Of Other Laws
  The following laws apply to public securities issued under this subchapter to the extent consistent with this subchapter: (1) Chapters 1201, 1202, 1204, 1205, 1231,...
• Texas Section 2211.204 - Issuance Of Public Securities Authorized
  At the request of the association and subject to Section 2211.205, the Texas Public Finance Authority shall issue public securities to: (1) fund the association,...
• Texas Section 2211.205 - Limitation On Amount Of Public Securities
  The Texas Public Finance Authority may issue on behalf of the association public securities in a total amount not to exceed $75 million. Added by...
• Texas Section 2211.206 - Terms Of Issuance
  (a) Public securities issued under this subchapter may be issued at a public or private sale. (b) Public securities must: (1) be issued in the...
• Texas Section 2211.207 - Contents Of Public Security Resolution; Administration Of Accounts
  (a) In a public security resolution, the board may: (1) provide for the flow of funds and the establishment, maintenance, and investment of funds and...
• Texas Section 2211.208 - Source Of Payment
  (a) Public securities issued under this subchapter are payable only from: (1) the service fee established under Section 2211.209; or (2) other amounts the association...
• Texas Section 2211.209 - Service Fee
  (a) A service fee may be assessed against: (1) each participating insurer; and (2) the association. (b) The commissioner shall set the service fee in...
• Texas Section 2211.210 - Exemption From Taxation
  Public securities issued under this subchapter, any interest from the public securities, and all assets pledged to secure the payment of the public securities are...
• Texas Section 2211.211 - Authorized Investments
  Public securities issued under this subchapter are authorized investments under Subchapter B, Chapter 424, and Subchapters C and D, Chapter 425. Added by Acts 2005,...
• Texas Section 2211.212 - State Pledge Regarding Public Security Owner Rights And Remedies
  (a) The state pledges to and agrees with the owners of public securities issued in accordance with this subchapter that the state will not limit...

SUBCHAPTER F PENALTIES

• Texas Section 2211.213 - Payment Enforceable By Mandamus
  A writ of mandamus and any other legal or equitable remedy are available to a party in interest to require the association or another party...
• Texas Section 2211.251 - Sanctions And Administrative Penalties
  If the association, the inspection bureau, or a participating insurer is found to be in violation of or to have failed to comply with this...
• Texas Section 2211.252 - Additional Disciplinary Procedures
  In addition to the remedies provided by Section 2211.251, the commissioner may use any other disciplinary procedures authorized by this code, including the cease and...

Last modified: September 28, 2016