Title IN, Insurance Code

Sec. 2205.052. PARTICIPATION IN POOL. A child-care facility is entitled to coverage from the pool if the facility: (1) submits a complete application; (2) provides other information required by the pool; (3) meets the underwriting standards established by the pool; and (4) pays t…

Sec. 2205.053. SELECTION OF TEMPORARY BOARD. At the time the governing bodies of the child-care facilities enter into the written agreement under Section 2205.051, the governing bodies shall select nine individuals to: (1) serve as the temporary board; and (2) draft the plan of o…

Sec. 2205.101. TIME FOR CREATION OF PLAN OF OPERATION. (a) Not later than the 30th day after the date the last member of the temporary board is selected, the temporary board shall meet to prepare a plan of operation for the pool. (b) The temporary board shall complete and adopt t…

Sec. 2205.102. CONTENTS OF PLAN OF OPERATION. (a) Subject to the requirements of this chapter, the plan of operation must include: (1) the organizational structure of the pool, including: (A) the method of selecting the board; (B) the board's methods of procedure and operation; a…

Sec. 2205.103. APPROVAL OF PLAN OF OPERATION. (a) On completion of the plan of operation, the temporary board shall submit the plan to the department for examination, suggested changes, and final approval. (b) The department shall approve the plan of operation on the determinatio…

Sec. 2205.151. GOVERNANCE OF POOL. (a) The pool is governed by a board of trustees composed of nine members selected as provided by the plan of operation. (b) Not later than the 15th day after the date the department approves the plan of operation, the initial regular board must …

Sec. 2205.152. TERMS; VACANCY. (a) Board members serve two-year terms. The terms expire as provided by the plan of operation. (b) A vacancy on the board shall be filled as provided by the plan of operation. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1,…

Sec. 2205.153. PERFORMANCE BOND REQUIRED. (a) Each board member shall execute a bond in the amount required by the plan of operation. The bond must be payable to the pool and conditioned on the faithful performance of the member's duties. (b) The pool shall pay the cost of the bo…

Sec. 2205.154. COMPENSATION. A board member is not entitled to compensation for the member's service on the board. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.

Sec. 2205.155. OFFICERS; MEETINGS. (a) The board shall elect from the board's membership a presiding officer and other officers as provided by the plan of operation. (b) Each officer serves a one-year term that expires as provided by the plan of operation. (c) The board shall mee…

Sec. 2205.156. GENERAL POWERS AND DUTIES OF BOARD. (a) The board shall: (1) approve contracts, other than liability insurance contracts issued by the pool to child-care facilities; and (2) adopt premium rate schedules and policy forms for the pool. (b) The board may: (1) adopt ru…

Sec. 2205.157. IMMUNITY OF BOARD MEMBERS FROM CERTAIN LIABILITIES. A board member is not liable: (1) with respect to a claim or judgment for which coverage is provided by the pool; or (2) for a claim or judgment against a child-care facility covered by the pool. Added by Acts 200…

Sec. 2205.201. GENERAL POWERS AND DUTIES OF POOL. (a) The pool shall: (1) issue primary and excess liability coverage to each child-care facility entitled to coverage under this chapter; (2) collect premiums for coverage issued or renewed by the pool; (3) process and pay valid cl…

Sec. 2205.202. POOL MANAGER; PERFORMANCE BOND REQUIRED. (a) The board shall appoint a pool manager who serves at the pleasure of the board, and the board shall supervise the pool manager's activities. (b) The pool manager shall execute a bond in the amount determined by the board…

Sec. 2205.203. GENERAL POWERS AND DUTIES OF POOL MANAGER. (a) The pool manager shall direct the general operation of the pool and perform other duties as directed by the board. (b) The pool manager shall: (1) receive and approve applications for liability coverage from the pool; …

Sec. 2205.204. PERSONNEL. (a) The pool manager may employ or contract with persons as necessary to assist the board and the pool manager in implementing the powers and duties of the pool. (b) The board must approve: (1) the compensation paid to a pool employee; and (2) a contract…

Sec. 2205.205. PERFORMANCE BOND AUTHORIZED. The board may require an employee or a person with whom the pool manager contracts under Section 2205.204 to execute a bond in an amount determined by the board. The bond must be payable to the board and conditioned on the faithful perf…

Sec. 2205.206. IMMUNITY OF EMPLOYEES AND CONTRACTORS FROM CERTAIN LIABILITIES. An employee or a person with whom the pool manager contracts under Section 2205.204 is not liable with respect to a claim or judgment against a child-care facility covered by the pool. Added by Acts 20…

Sec. 2205.207. OFFICE; RECORDS. (a) The pool shall maintain the pool's principal office in Austin, Texas. (b) Records and other information relating to the operation of the pool must be maintained in the pool's principal office. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017),…

Sec. 2205.208. ANNUAL AUDIT. The board shall require an annual audit of the pool's capital, surplus, and reserves. The audit must be conducted by an actuary who is a member of the American Academy of Actuaries or a similar national organization of actuaries recognized by the boar…

Sec. 2205.251. FUND CREATION; MANAGEMENT. (a) The Texas child-care facility liability fund is established on the creation of the pool. (b) The fund is composed of: (1) premiums paid by child-care facilities for coverage provided by the pool; (2) contributions and other money rece…

Sec. 2205.252. CONTRIBUTIONS. The board shall determine the amount of contributions necessary to meet the initial expenses of the pool. The board shall make this determination based on the information provided by the plan of operation. Added by Acts 2005, 79th Leg., Ch. 727 (H.B.…

Sec. 2205.253. USES OF FUND. (a) Administrative expenses of the pool may be paid from the fund. Payments for administrative expenses during a fiscal year may not exceed 10 percent of the total amount of the money in the fund during that fiscal year. (b) Money in the fund may not …

Sec. 2205.254. DEPOSITORY BANK. (a) The board may select one or more banks to serve as a depository for the fund. (b) A depository bank must provide security before money in the fund may be deposited in the bank in an amount that exceeds the maximum amount secured by the Federal …

Sec. 2205.301. SCOPE OF COVERAGE. (a) The pool shall insure a child-care facility and the facility's officers and employees against liability for acts and omissions under the laws of this state by the officers and employees in their official or employment capacities. (b) The pool…

Sec. 2205.302. BASIS OF COVERAGE. The pool may provide liability insurance coverage on a claims-made basis or an occurrence basis. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.

Sec. 2205.303. RATES AND LIMITS OF COVERAGE. (a) To ensure that the pool is actuarially sound, the board shall: (1) set the premium rates charged; and (2) determine the maximum limits of coverage provided. (b) The pool manager, for the board's consideration, shall: (1) collect an…

Sec. 2205.304. COVERAGE PERIOD. A child-care facility that accepts coverage provided by the pool shall maintain that coverage for at least 24 consecutive months following the date the pool issued the coverage. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April…

Sec. 2205.305. NONRENEWAL OF COVERAGE. (a) Except as provided by Subsection (b), the pool may refuse to renew the coverage of a child-care facility that fails to comply with the pool's underwriting standards. (b) The pool may not refuse to renew the coverage of a child-care facil…

Sec. 2205.306. SUBSEQUENT COVERAGE. A child-care facility that voluntarily discontinues coverage provided by the pool is not eligible to subsequently obtain coverage from the pool for at least 12 months following the date the coverage is discontinued. Added by Acts 2005, 79th Leg…

Sec. 2205.307. PAYMENT OF CLAIMS AND JUDGMENTS. (a) If money in the fund would be exhausted by the payment of all final and settled claims and final judgments during a fiscal year, the pool shall prorate the amount paid to each person having the claim or judgment. (b) If the amou…