Texas Insurance Code Title 6, Chapter 961 - Nonprofit Legal Services Corporations
SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 961.001 - Definitions
In this chapter: (1) "Applicant" means a person applying for a contract for legal services to be performed through a nonprofit legal services corporation. (2)...
- Texas Section 961.002 - Applicability Of Other Laws
(a) The Texas Miscellaneous Corporation Laws Act (Article 1302-1.01 et seq., Vernon's Texas Civil Statutes) and the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,...
- Texas Section 961.003 - Corporation Subject To Department Regulation
Each nonprofit legal services corporation is subject to this chapter and to direct regulation by the department. Added by Acts 2001, 77th Leg., ch. 1419,...
- Texas Section 961.004 - Corporation Not Engaged In Business Of Insurance
A nonprofit legal services corporation that complies with this chapter is not engaged in the business of insurance and, except as provided by Section 961.002(b),...
SUBCHAPTER B FORMATION AND STRUCTURE OF NONPROFIT LEGAL SERVICES CORPORATIONS
- Texas Section 961.005 - Agents
The licensing and regulation of an agent authorized to solicit prepaid legal services contracts for a nonprofit legal services corporation is subject to Title 13....
- Texas Section 961.051 - Application For Corporate Charter; Nonprofit Status Required
(a) Seven or more persons may apply to the secretary of state for a corporate charter under the Texas Non-Profit Corporation Act (Article 1396-1.01 et...
SUBCHAPTER C AUTHORITY TO ENGAGE IN BUSINESS
- Texas Section 961.052 - Minimum Participation Requirements
(a) After incorporation and before engaging in business other than seeking applicants and obtaining contracting attorneys, a nonprofit legal services corporation must collect in advance...
- Texas Section 961.101 - Issuance Of Certificate Of Authority
(a) The department shall issue a certificate of authority to a nonprofit legal services corporation to engage in business if the corporation: (1) files a...
SUBCHAPTER D BOARD OF DIRECTORS; PERSONNEL
- Texas Section 961.102 - Revocation Of Certificate Of Authority
(a) After a hearing, the commissioner shall revoke the certificate of authority of a nonprofit legal services corporation if: (1) the commissioner determines the corporation...
- Texas Section 961.151 - Compensation Of Directors
A director of a nonprofit legal services corporation may not receive salary or other compensation for the director's services but may receive reimbursement for reasonable...
- Texas Section 961.152 - Financial Officer; Bond
(a) A nonprofit legal services corporation, by resolution entered in its minutes, shall designate one or more officers to be responsible for handling the corporation's...
SUBCHAPTER E REGULATION OF NONPROFIT LEGAL SERVICES CORPORATIONS
- Texas Section 961.153 - Bond Requirements For Certain Persons
(a) In addition to the bond required by Section 961.152, a nonprofit legal services corporation shall obtain a separate or blanket surety bond covering each...
- Texas Section 961.201 - Plan Of Operation; Expense Fund Balance
(a) Before accepting applications for participation in a legal services plan, a nonprofit legal services corporation must: (1) have sufficient money in its expense fund...
- Texas Section 961.202 - Annual Statement
(a) Not later than March 1 of each year, each nonprofit legal services corporation shall file with the department an annual statement that covers the...
- Texas Section 961.203 - Claim Fund; Expense Fund
(a) A nonprofit legal services corporation shall maintain a claim fund and an expense fund. (b) The claim fund is composed of: (1) application fees;...
- Texas Section 961.204 - Deposit Requirements
A nonprofit legal services corporation shall deposit money collected from applicants or participants in an account of the corporation in a public bank. The bank...
- Texas Section 961.205 - Solvency Of Funds
As a condition of holding a certificate of authority under this chapter, a nonprofit legal services corporation shall maintain the solvency of each fund so...
- Texas Section 961.206 - Advance To Corporation
Any person may advance to a nonprofit legal services corporation, on a contingent liability basis, money necessary for the purposes of the corporation's business or...
- Texas Section 961.207 - Participation Agreements
(a) Subject to Subsection (b), a nonprofit legal services corporation may: (1) contract with another nonprofit legal services corporation or an insurer authorized to engage...
- Texas Section 961.208 - Exclusive Agency Contract Or Management Contract
(a) A nonprofit legal services corporation may not enter into an exclusive agency contract or management contract unless the contract has been approved by the...
- Texas Section 961.209 - Remedies For Corporation In Hazardous Financial Condition
(a) If the commissioner determines that a nonprofit legal services corporation's financial condition is such that the continued operation of the corporation may be hazardous...
- Texas Section 961.210 - Rules Relating To Hazardous Financial Condition
(a) The commissioner by rule may establish: (1) uniform standards and criteria for early warning that the continued operation of a nonprofit legal services corporation...
- Texas Section 961.211 - Books And Records
(a) A nonprofit legal services corporation shall keep complete books and records of all money collected and disbursed. (b) The department may examine books and...
SUBCHAPTER F BENEFITS PROVIDED BY NONPROFIT LEGAL SERVICES CORPORATIONS
- Texas Section 961.212 - Fees
(a) The commissioner shall charge each of the following fees in an amount prescribed by the commissioner not to exceed: (1) $400 for filing an...
- Texas Section 961.251 - Applicants; Benefit Certificate
(a) A nonprofit legal services corporation may accept applicants and shall issue a benefit certificate to each applicant that becomes a participant under a legal...
- Texas Section 961.252 - Approval Of Forms
A benefit certificate, application form, or contract between a nonprofit legal services corporation and a participant's employer or group representative must be in a form...
- Texas Section 961.253 - Types Of Legal Services Contracts
A nonprofit legal services corporation may issue legal services contracts on an individual, group, or franchise basis. Added by Acts 2001, 77th Leg., ch. 1419,...
- Texas Section 961.254 - Indemnity Contracts
(a) A nonprofit legal services corporation may issue a contract for legal services, as provided by rules adopted by the commissioner, providing for indemnity for...
- Texas Section 961.255 - Limitations On Benefits
A contract for legal services and a benefit certificate issued by a nonprofit legal services corporation may limit: (1) the types and extent of benefits;...
SUBCHAPTER G CONTRACTS WITH ATTORNEYS
- Texas Section 961.256 - Claims
(a) A nonprofit legal services corporation shall pay a lawful claim for payment under a benefit certificate not later than the 120th day after the...
- Texas Section 961.301 - Contracts With Attorneys
(a) A nonprofit legal services corporation may contract with attorneys as provided by this chapter to ensure to each participant legal services performed by the...
- Texas Section 961.302 - Agreement Of Contracting Attorneys
The contracting attorneys shall: (1) guarantee to the participants the services stated under the participants' benefit certificates, except as provided by Section 961.254; and (2)...
- Texas Section 961.303 - Limitations On Corporation's Relationship With Attorneys And Participants
(a) A nonprofit legal services corporation may not: (1) contract to practice law; or (2) control or attempt to control the relationship existing between a...
- Texas Section 961.304 - Contract With Any Attorney Required
A nonprofit legal services corporation must agree to contract under Section 961.301 with any attorney licensed to practice law in this state. Added by Acts...
- Texas Section 961.305 - Attorney Insurance Required
(a) Each contracting attorney shall maintain professional liability and errors and omissions insurance as required by the nonprofit legal services corporation with which the attorney...
- Texas Section 961.306 - Payment Only For Services Provided
A nonprofit legal services corporation may not pay any of the claim funds collected from participants to an attorney except for legal services that the...
SUBCHAPTER I DISSOLUTION AND LIQUIDATION OF CORPORATION
- Texas Section 961.307 - Complaint Regarding Attorney
If the department receives a complaint concerning the performance of an attorney connected with a nonprofit legal services corporation, the department shall refer the complaint...
- Texas Section 961.401 - Supervision By Department
The department shall supervise any dissolution or liquidation of a nonprofit legal services corporation. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff....
- Texas Section 961.402 - Voluntary Dissolution
(a) The board of directors of a nonprofit legal services corporation may vote to dissolve the corporation at any time, but the corporation may not...
- Texas Section 961.403 - Involuntary Dissolution
If the commissioner after notice and hearing determines that a nonprofit legal services corporation is insolvent or has violated this chapter, the corporation's affairs shall...
- Texas Section 961.404 - Priority Of Claims
In a dissolution of a nonprofit legal services corporation, participants' claims have priority over all other claims except costs of liquidation. Added by Acts 2001,...
Last modified: September 28, 2016