Title IN, Insurance Code

Sec. 2210.603. APPLICABILITY OF OTHER LAWS. (a) The board shall issue the public securities as described by Section 2210.604 in accordance with and subject to the requirements of Chapter 1232, Government Code, other than Section 1232.108 of that chapter, and in accordance with an…

Sec. 2210.604. ISSUANCE OF PUBLIC SECURITIES AUTHORIZED. (a) At the request of the association and with the approval of the commissioner, the Texas Public Finance Authority shall issue Class 1, Class 2, or Class 3 public securities. The association shall submit to the commissione…

Sec. 2210.605. TERMS OF ISSUANCE. (a) The board shall determine the method of sale, type and form of public security, maximum interest rates, and other terms of the public securities that, in the board's judgment, best achieve the goals of the association and effect the borrowing…

Sec. 2210.606. ADDITIONAL COVENANTS. The board may make additional covenants with respect to the public securities and the designated income and receipts of the association pledged to their payment, and provide for the flow of funds and the establishment, maintenance, and investm…

Sec. 2210.607. PUBLIC SECURITY PROCEEDS. The proceeds of public securities issued by the board under this subchapter may be deposited with the Texas Treasury Safekeeping Trust Company. Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, eff. June 19, 2009. Repeale…

Sec. 2210.608. USE OF PUBLIC SECURITY PROCEEDS. (a) Public security proceeds, including investment income, shall be held in trust for the exclusive use and benefit of the association. The association may use the proceeds to: (1) pay incurred claims and operating expenses of the a…

Sec. 2210.609. REPAYMENT OF ASSOCIATION'S PUBLIC SECURITY OBLIGATIONS. (a) The board and the association shall enter into an agreement under which the association shall provide for the payment of all public security obligations from available funds collected by the association an…

Sec. 2210.610. PUBLIC SECURITY PAYMENTS. (a) Revenues received from the premium surcharges under Sections 2210.612, 2210.613, and 2210.6131 may be applied only as provided by this subchapter. (b) The association may pay public security obligations with other legally available fun…

Sec. 2210.611. EXCESS REVENUE COLLECTIONS AND INVESTMENT EARNINGS. Revenue collected in any calendar year from a premium surcharge under Sections 2210.612, 2210.613, and 2210.6131 that exceeds the amount of the public security obligations and public security administrative expens…

Sec. 2210.612. PAYMENT OF CLASS 1 PUBLIC SECURITIES. (a) The association shall pay Class 1 public securities issued under Section 2210.072 from: (1) net premium and other revenue; and (2) if net premium and other revenue are not sufficient to pay the securities, a catastrophe are…

Sec. 2210.613. PAYMENT OF CLASS 2 PUBLIC SECURITIES. (a) The association shall pay Class 2 public securities issued under Section 2210.073 from: (1) net premium and other revenue; and (2) if net premium and other revenue are not sufficient to pay the securities, a catastrophe are…

Sec. 2210.6131. PAYMENT OF CLASS 3 PUBLIC SECURITIES. (a) The association shall pay Class 3 public securities issued under Section 2210.0741 from: (1) net premium and other revenue; and (2) if net premium and other revenue are not sufficient to pay the securities, a catastrophe a…

Sec. 2210.6132. CONTINGENT SOURCE OF PAYMENT FOR CLASS 2 AND CLASS 3 PUBLIC SECURITIES. (a) The commissioner may determine, in consultation with the board and the authority, that: (1) the authority is unable to issue Class 2 or Class 3 public securities to be payable under Sectio…

Sec. 2210.614. REFINANCING PUBLIC SECURITIES. The association may request the board to refinance any public securities issued in accordance with Subchapter B-1, whether Class 1, Class 2, or Class 3 public securities, with public securities payable from the same sources as the ori…

Sec. 2210.615. SOURCE OF PAYMENT; STATE DEBT NOT CREATED. (a) A public security or credit agreement is payable solely from revenue as provided by this subchapter. (b) A public security issued under this subchapter, and any related credit agreement, is not a debt of this state or …

Sec. 2210.616. STATE NOT TO IMPAIR PUBLIC SECURITY OBLIGATIONS. (a) The state pledges for the benefit and protection of financing parties, the board, and the association that the state will not take or permit any action that would: (1) impair the collection of premium surcharges …

Sec. 2210.6165. PROPERTY RIGHTS. If public securities issued under this subchapter are outstanding, the rights and interests of the association, a successor to the association, any member of the association, or any member of the Texas FAIR Plan Association, including the right to…

Sec. 2210.617. ENFORCEMENT BY MANDAMUS. A writ of mandamus and any other legal and equitable remedies are available to a party at interest to require the association or another party to fulfill an agreement and to perform functions and duties under: (1) this subchapter; (2) the T…

Sec. 2210.618. EXEMPTION FROM TAXATION. A public security issued under this subchapter, any transaction relating to the public security, and profits made from the sale of the public security are exempt from taxation by this state or by a municipality or other political subdivisio…

Sec. 2210.619. NO PERSONAL LIABILITY. The members of the association, members of the association board of directors, association employees, the board, the employees of the Texas Public Finance Authority, the commissioner, and department employees are not personally liable as a re…

Sec. 2210.620. AUTHORIZED INVESTMENTS. Public securities issued under this subchapter are authorized investments under: (1) Subchapter B, Chapter 424; (2) Subchapter C, Chapter 425; and (3) Sections 425.203-425.213. Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. …

Sec. 2210.631. DEFINITION. In this subchapter, "catastrophic event" has the meaning assigned by Section 2210.602. Added by Acts 2025, 89th Leg., R.S., Ch. 895 (H.B. 3689), Sec. 1.15, eff. September 1, 2025.

Sec. 2210.6315. STATE-FUNDED FINANCING ARRANGEMENTS. The legislature has determined that providing catastrophe funding to the association by permitting the association to enter into a financing arrangement with this state is an acceptable use of state money and provides an effici…

Sec. 2210.632. FINANCING ARRANGEMENT AUTHORIZED; LIMITS. (a) The association may enter into a financing arrangement with this state as provided by Section 404.0242, Government Code, and in accordance with this subchapter: (1) before a catastrophic event, for not more than $500 mi…

Sec. 2210.6325. REQUEST TO ENTER INTO FINANCING ARRANGEMENT. (a) The association may submit a request to the comptroller to enter into a financing arrangement as authorized by Section 404.0242, Government Code. The request must include the association's requested maximum principa…

Sec. 2210.633. ADDITIONAL COVENANTS. With respect to a financing arrangement entered into under Section 2210.632, the association may: (1) make additional covenants with respect to the financing arrangement and the designated income and receipts of the association pledged to the …

Sec. 2210.6335. DEPOSIT OF PROCEEDS. The proceeds of a financing arrangement with this state entered into under Section 2210.632 before a catastrophic event shall be deposited into a separate account located in the catastrophe reserve trust fund. Added by Acts 2025, 89th Leg., R.…

Sec. 2210.634. USE OF PROCEEDS. (a) The proceeds of a financing arrangement, including investment income, shall be held in trust for the exclusive use and benefit of the association. The association may use the proceeds to: (1) pay incurred claims and operating expenses of the as…

Sec. 2210.6345. REPAYMENT OF FINANCING ARRANGEMENT OBLIGATION. (a) With respect to a financing arrangement entered into under Section 2210.632, the comptroller and the association shall enter into a separate agreement under which the association shall provide for the payment of a…

Sec. 2210.635. EXCESS REVENUE COLLECTIONS AND INVESTMENT EARNINGS. With respect to a financing arrangement entered into under Section 2210.632, the association may use revenue collected in a calendar year from a premium surcharge, including earned interest, that exceeds the amoun…

Sec. 2210.6355. SOURCE OF PAYMENT; STATE DEBT NOT CREATED. (a) A financing arrangement entered into under Section 2210.632 is payable solely from revenue as provided by this subchapter. (b) A financing arrangement entered into under Section 2210.632 is not a debt of this state or…

Sec. 2210.636. STATE NOT TO IMPAIR FINANCING ARRANGEMENT OBLIGATION. The state pledges for the benefit and protection of financing parties that the state will not take or permit any action that would: (1) impair the collection of premium surcharges or the deposit of that money in…

Sec. 2210.6365. RIGHTS WITH RESPECT TO FINANCING ARRANGEMENT. If amounts due under a financing arrangement entered into under Section 2210.632 are outstanding, the rights and interests of the association, a successor to the association, any member of the association, or any membe…

Sec. 2210.637. ENFORCEMENT. A writ of mandamus and any other legal and equitable remedies are available to a party at interest to require the association or another party to fulfill an agreement and to perform functions and duties under: (1) this subchapter; (2) the Texas Constit…

Sec. 2210.6375. NO PERSONAL LIABILITY. Notwithstanding any other provision of this subchapter, the members of the association, the members of the association board of directors, association employees, the comptroller and comptroller employees, the commissioner, and department emp…

Sec. 2210.641. DEFINITION. In this subchapter, "catastrophic event" means an occurrence or a series of occurrences that: (1) occurs in a catastrophe area during a calendar year; and (2) results in insured losses and operating expenses of the association in excess of premium and o…

Sec. 2210.642. APPLICABILITY OF SUBCHAPTER. (a) Notwithstanding Section 2210.006, this subchapter applies to an insurer that is: (1) an insurer authorized to engage in the business of insurance in this state that is required to be a member of the association, including a farm mut…

Sec. 2210.6425. CONSTRUCTION OF SUBCHAPTER. (a) This subchapter may not be construed to require an insurer to be an association member if the insurer is not otherwise required to be a member under Section 2210.052. (b) A farm mutual insurance company that is not a fronting insure…

Sec. 2210.643. ANNUAL FINANCIAL REPORT BY COMMISSIONER. The commissioner shall determine the amount available in the catastrophe reserve trust fund as of December 31 of each year and provide a written report to the governor, lieutenant governor, and speaker of the house of repres…

Sec. 2210.6435. CATASTROPHE SURCHARGES. (a) The commissioner, in consultation with the board of directors and the comptroller, may order a catastrophe surcharge as provided by this subchapter only if: (1) before a catastrophic event, the association enters into a financing arrang…

Sec. 2210.644. CATASTROPHE SURCHARGE PROCEEDS. The proceeds of a catastrophe surcharge authorized under this subchapter shall be deposited into an account designated by the comptroller for purposes of repayment of the association's financing arrangement obligation and administrat…

Sec. 2210.6445. DISCLOSURE OF SURCHARGE. Each policy that is assessed a surcharge under this subchapter shall contain the following prominent disclosure in the documents attached to the policy: "A CATASTROPHE SURCHARGE HAS BEEN INCLUDED ON YOUR POLICY. THIS SURCHARGE WILL BE USED…

Sec. 2210.645. EXEMPTION FROM TAXATION. A surcharge collected under this subchapter is exempt from taxation by this state or a municipality or other political subdivision of this state. Added by Acts 2025, 89th Leg., R.S., Ch. 895 (H.B. 3689), Sec. 1.15, eff. September 1, 2025.

Sec. 2210.6455. LIMITATION OF PERSONAL LIABILITY. The association members, the insurers required to collect a surcharge under this subchapter, members of the board of directors, association employees, the commissioner, and department employees are not personally liable as a resul…

Sec. 2210.646. EXEMPTION FROM SURCHARGE. An insurer may not collect a surcharge authorized under this subchapter on any policy issued to this state, an agency of this state, or a political subdivision of this state. Added by Acts 2025, 89th Leg., R.S., Ch. 895 (H.B. 3689), Sec. 1…

Sec. 2210.651. DEFINITION. In this subchapter, "board" means the windstorm insurance legislative oversight board. Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, eff. June 19, 2009.