Texas Insurance Code Title 6, Chapter 942 - Reciprocal And Interinsurance Exchanges

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 942.001 - Definitions
  In this chapter: (1) "Attorney in fact" means an individual, firm, or corporation who, under a power of attorney or other appropriate authorization of the...
• Texas Section 942.002 - Subscriber Insurance Coverage Through Exchange Authorized; Life Insurance Prohibited
  (a) Except as provided by Subsection (c), subscribers of this state may exchange reciprocal or interinsurance contracts with other subscribers of this state or of...

SUBCHAPTER B FORMATION AND STRUCTURE OF EXCHANGE

• Texas Section 942.003 - Limited Exemption From Insurance Laws; Applicability Of Certain Laws
  (a) An exchange is exempt from the operation of all insurance laws of this state except as specifically provided in this chapter or unless exchanges...
• Texas Section 942.051 - Appointment Of Attorney In Fact; Approval By Department Of Power Of Attorney Or Other Authorization Required
  (a) A reciprocal or interinsurance contract may be executed by an attorney in fact appointed by the subscribers of an exchange. (b) A corporation may...
• Texas Section 942.052 - Security Requirements
  (a) Except as provided by Subsection (d), to act as an attorney in fact, an individual, firm, or corporation must execute a good and sufficient...
• Texas Section 942.053 - Subscriber Declaration
  (a) On entering into a reciprocal or interinsurance contract, the subscribers, through the attorney in fact, shall file with the department a declaration verified by...
• Texas Section 942.054 - Name Of Exchange
  (a) The name of an exchange must contain the term "reciprocal," "inter-insurance exchange," "underwriters," "association," "exchange," "underwriting," "inter-insurers," or "inter-insurors." (b) The name selected for...

SUBCHAPTER C AUTHORITY TO ENGAGE IN BUSINESS

• Texas Section 942.055 - Office Locations
  The attorney in fact shall maintain the offices of the exchange at the places designated by the subscribers in the power of attorney or other...

SUBCHAPTER D OPERATION, POWERS, AND DUTIES OF EXCHANGE

• Texas Section 942.101 - Certificate Of Authority Required; Effect On Foreign Corporations
  (a) An attorney in fact must hold a certificate of authority issued by the department under Sections 801.001, 801.002, 801.051-801.055, 801.057, 801.101, and 801.102. A...
• Texas Section 942.151 - Subscriber Liability For Certain Contingent Premiums
  (a) Except as provided by Section 942.152 and Subsection (b), if a certificate of authority is issued as provided by Subchapter C, the power of...
• Texas Section 942.152 - Subscriber Limited Liability Based On Certain Minimum Capital And Surplus
  If the unencumbered surplus of an exchange is at least equal to the minimum capital stock and minimum surplus required of a stock insurance company...
• Texas Section 942.153 - Prior Authority Not Affected
  This chapter does not affect any authority that existed before September 6, 1955, that allowed the subscribers of an exchange and their attorney in fact...
• Texas Section 942.154 - Statements Relating To Indemnity Amounts
  (a) The attorney in fact for an exchange shall file with the department a sworn statement that shows the maximum amount of indemnity on any...
• Texas Section 942.155 - Financial Requirements
  (a) An exchange shall maintain at all times an unencumbered surplus over and above all liabilities that is at least equal to the minimum capital...
• Texas Section 942.156 - Issuance Of Fidelity And Surety Bond Insurance; Deposit Required
  (a) If a domestic exchange writes fidelity or surety bond insurance in this state, the exchange shall keep on deposit with the comptroller money, bonds,...
• Texas Section 942.157 - Transactions Between Certain Insurers And Affiliated Exchanges
  (a) In this section, "affiliate" has the meaning assigned by Section 823.003. (b) An insurer subject to Article 5.26 may not directly or indirectly assume...
• Texas Section 942.158 - Advances Of Money By Attorney In Fact
  (a) The attorney in fact for an exchange may advance to the exchange any amount of money necessary to conduct the business of the exchange,...

SUBCHAPTER E REGULATION OF EXCHANGES

• Texas Section 942.159 - Violation By Attorney In Fact Of Requirements Regarding Indemnity Contracts; Criminal Penalty
  (a) An attorney in fact commits an offense if the attorney in fact: (1) exchanges a reciprocal or interinsurance contract without first complying with the...
• Texas Section 942.201 - Annual Report
  (a) Not later than March 1 of each year, the attorney in fact for an exchange shall submit to the commissioner a report covering the...
• Texas Section 942.202 - Examination By Department
  The business affairs and assets of an exchange, as shown at the office of the attorney in fact, are subject to examination by the department....
• Texas Section 942.203 - Fees; Taxes; Filing Fee
  (a) To the extent applicable, the schedule of fees established under Chapter 202 applies to an exchange and the exchange's attorney in fact. (b) An...

Last modified: September 28, 2016