Texas Insurance Code Title 6, Chapter 941 - Lloyd's Plan

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 941.001 - Definitions
  In this chapter: (1) "Affiliate" has the meaning described by Section 823.003. (2) "Attorney in fact" means an attorney in fact authorized under a power...
• Texas Section 941.002 - Lloyd's Plan Insurance Authorized; Life Insurance Prohibited
  (a) Except as provided by Subsection (b), a Lloyd's plan may write any kind of insurance that may be lawfully written in this state, including:...
• Texas Section 941.003 - Limited Exemption From Insurance Laws; Application Of Certain Laws
  (a) A Lloyd's plan is exempt from the operation of all insurance laws of this state except as specifically provided in this chapter or unless...

SUBCHAPTER B FORMATION AND STRUCTURE OF LLOYD'S PLAN

• Texas Section 941.004 - Withdrawal From The Business Of Insurance
  (a) A Lloyd's plan may withdraw from the business of insurance only if the department determines that adequate provision has been made, through reinsurance or...
• Texas Section 941.051 - Formation Of Lloyd's Plan
  (a) To write insurance on the Lloyd's plan, underwriters must: (1) execute articles of agreement expressing the intent to write insurance; and (2) comply with...
• Texas Section 941.052 - Attorney In Fact
  (a) The attorney in fact may execute insurance policies for the Lloyd's plan. (b) The principal office of the attorney in fact must be maintained...
• Texas Section 941.053 - Deputy Or Substitute Attorney In Fact
  An appointed deputy attorney in fact or substitute attorney in fact for an attorney in fact holding a certificate of authority under this chapter and...

SUBCHAPTER C AUTHORITY TO ENGAGE IN BUSINESS

• Texas Section 941.054 - Name Of Lloyd's Plan
  The name under which a Lloyd's plan engages in business: (1) must contain the word "Lloyd's"; and (2) may not be so similar to any...
• Texas Section 941.101 - Certificate Of Authority Required
  (a) An attorney in fact may not write insurance in this state or for residents of this state or covering property located in this state...
• Texas Section 941.102 - Application For Certificate Of Authority
  (a) The attorney in fact shall file with the department a verified application for a certificate of authority that states: (1) the name of the...

SUBCHAPTER D OPERATION, POWERS, AND DUTIES OF LLOYD'S PLAN

• Texas Section 941.103 - Issuance Of Certificate Of Authority
  On determination by the department that the underwriters and attorney in fact have complied with the law, the department shall, in accordance with Sections 801.001,...
• Texas Section 941.151 - Liability Of Underwriter
  (a) Subject to Subsection (c), an underwriter by contract with the persons insured may limit the underwriter's liability to the percentage of the loss that...
• Texas Section 941.152 - Liability Of Additional Or Substituted Underwriter
  An additional or substituted underwriter is liable in the same manner and to the same extent as an original subscriber to the articles of agreement...
• Texas Section 941.153 - Accrual Of Profits
  The profits of a Lloyd's plan may accrue to an underwriter only on the basis of the underwriter's actual investment in cash or convertible securities,...
• Texas Section 941.154 - Assumption Of Risk By Certain Affiliated Insurers
  An insurer who is subject to Article 5.26 may not directly or indirectly assume all or a substantial part of a risk covered by a...
• Texas Section 941.155 - Promotion Of Lloyd's Plan
  (a) An individual, firm, or corporation may not be instrumental in organizing a Lloyd's plan if, in the organization of the Lloyd's plan, compensation is...

SUBCHAPTER E FINANCIAL REQUIREMENTS

• Texas Section 941.156 - Reinsurance Permitted
  This chapter does not prevent a domestic Lloyd's plan from reinsuring: (1) the Lloyd's plan's excess lines with a solvent foreign Lloyd's plan acceptable to...
• Texas Section 941.201 - Required Net Assets
  The department may not issue a certificate of authority to an attorney in fact unless the net assets contributed to the attorney in fact, a...
• Texas Section 941.202 - Limitation Of Business
  (a) Except as provided by Subsection (c), a Lloyd's plan may not assume or write insurance risks in this state, for residents of this state,...
• Texas Section 941.203 - Computation Of Reserve
  A Lloyd's plan shall compute reserve liabilities for outstanding business and incurred losses on the same basis required for a stock insurance company engaged in...
• Texas Section 941.204 - Authorized Investments
  (a) The minimum guaranty fund and surplus required of a Lloyd's plan under Sections 822.054, 822.202, 822.210, 822.211, and 941.201 must be: (1) in cash;...
• Texas Section 941.205 - Joint Control Of Minimum Assets
  (a) To the extent of the minimum required under this subchapter, the assets of a Lloyd's plan must be made subject to the joint control...

SUBCHAPTER F REGULATION OF LLOYD'S PLAN

• Texas Section 941.206 - Hazardous Financial Condition, Supervision, Conservatorship, And Liquidation; Impairment Of Surplus
  (a) Subchapter A, Chapter 404, and Chapters 441 and 443 apply to a Lloyd's plan engaged in the business of insurance in this state. (b)...
• Texas Section 941.251 - Examinations
  (a) The provisions of Sections 86.001, 86.002, 401.051, 401.052, 401.054-401.062, 401.151, 401.152, 401.155, and 401.156 that relate to the examination of insurers apply to a...

SUBCHAPTER G FOREIGN LLOYD'S PLAN

• Texas Section 941.252 - Annual Report
  (a) An attorney in fact shall annually file with the department a verified report on a form prepared by the department of: (1) the business...
• Texas Section 941.301 - Foreign Lloyd's Plan; Bond Or Minimum Net Assets Required
  (a) Except as provided by Subsection (b), the commissioner may not issue a certificate of authority to an attorney in fact if: (1) the underwriters...

SUBCHAPTER H CONVERSION TO CAPITAL STOCK INSURANCE COMPANY

• Texas Section 941.302 - Bond Of Foreign Lloyd's Plan
  (a) A bond filed under Section 941.301 must: (1) be executed by corporate sureties that: (A) meet the requirements imposed by the department; and (B)...
• Texas Section 941.351 - Conversion Authorized
  The underwriters may convert a Lloyd's plan to a capital stock insurance company governed by Chapter 822 by complying with this subchapter. Added by Acts...
• Texas Section 941.352 - Adoption Of Conversion Plan
  The underwriters by a two-thirds vote may adopt a plan to convert the Lloyd's plan to a capital stock insurance company. Added by Acts 2001,...
• Texas Section 941.353 - Requirements Of Conversion Plan
  The conversion plan must provide that a capital stock insurance company will be formed in accordance with Chapter 822, except that: (1) the company's required...
• Texas Section 941.354 - Commissioner Approval Of Conversion Plan
  On the commissioner's approval of the conversion plan and the formation of the capital stock insurance company, all assets, interests, obligations, and liabilities of the...

SUBCHAPTER O PENALTIES

• Texas Section 941.355 - Conversion Of Member Of Holding Company System
  If the Lloyd's plan is a member of a holding company system identified in registration information that the Lloyd's plan filed with the department in...
• Texas Section 941.701 - Revocation Of Certificate Of Authority
  The commissioner shall revoke a certificate of authority issued to an attorney in fact if the attorney in fact or an underwriter violates this chapter...
• Texas Section 941.702 - Criminal Penalty
  (a) A person commits an offense if the person, as a principal, attorney in fact, agent, broker, or other representative, engages in the business of...

Last modified: September 28, 2016