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TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 5PROPERTY AND CASUALTY INSURANCE
SUBCHAPTER ETEXAS WINDSTORM INSURANCE ASSOCIATION
DIVISION 3LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES
RULE §5.4143Trust Funds for the Payment of Class 2 Public Securities

(a) As required by any agreements between the association, TPFA, and the trust company, insurers may be required to deposit premium surcharges and member assessments directly into the premium surcharge trust fund and member assessment trust fund, respectively.

(b) If insurers are required to direct deposit under subsection (a) of this section, then the association must provide notice to the commissioner and insurers:

  (1) for premium surcharges, no later than 60 days before the insurers must implement the surcharge; and

  (2) for member assessments, with the notice required under §5.4163 of this division (relating to Notice of Assessments).

(c) The notice under subsection (b) of this section must include all applicable deposit instructions, including any required routing information and account numbers.

(d) Insurers must deposit the funds into the appropriate accounts on the date the funds must otherwise be remitted to the association under §5.4164 of this division (relating to Payment of Assessment) and §5.4186 of this division (relating to Remittance of Premium Surcharges).

(e) If insurers are not required to direct deposit under subsection (a) of this section, then the association must deposit the collected premium surcharges and association member assessments on receipt into the appropriate accounts as required under agreements with TPFA and the trust company. The association may not directly or indirectly use, borrow, or in any manner pledge or encumber premium surcharges and association member assessments collected, or to be collected, by the association under Insurance Code §2210.613, except for the payment of class 2 public security obligations and as otherwise authorized in this title.

(f) The trust company must deposit any investment income earned on the premium surcharges or member assessments into the appropriate trust fund accounts while these amounts are on deposit.


Source Note: The provisions of this §5.4143 adopted to be effective February 3, 2011, 36 TexReg 551; amended to be effective June 12, 2014, 39 TexReg 4435

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