Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 5 - PROPERTY AND CASUALTY INSURANCE
Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION
Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES
Section 5.4133 - Public Security Proceeds

Universal Citation: 28 TX Admin Code § 5.4133

Current through Reg. 50, No. 13; March 28, 2025

(a) As necessary, the association must make written requests to TPFA for the disbursement of public security proceeds for the association program, including

(1) for the payment of incurred claims and operating expenses of the association, or

(2) other amounts as authorized in Insurance Code § 2210.608.

(b) The association's written request must specify:

(1) the amount of the request; and

(2) the purpose of the request.

(c) To facilitate timely payment of losses, the association may request funds to be disbursed to the association before the settlement of incurred claims.

(d) The association must account for the receipt and use of public security proceeds separately from all other sources of funds. The association may hold public security proceeds in the manner authorized by the association's plan of operation or as required by agreement with TPFA.

(e) The proceeds of public securities issued after a catastrophic event may be used:

(1) for any purpose authorized in Insurance Code § 2210.608(a), during the catastrophe year for which the public securities were issued;

(2) only to pay for losses and expenses resulting from the catastrophe year for which the public securities were issued, during subsequent years; and

(3) after all losses and expenses resulting from the catastrophe year for which the public securities were issued are paid, only in accordance with Insurance Code § 2210.608(b) and § 5.4134 of this title (relating to Excess Public Security Proceeds).

(f) The proceeds of public securities issued before a catastrophic event may be used:

(1) for any purpose authorized in Insurance Code § 2210.608(a) and (c), during the catastrophe year for which the proceeds were disbursed;

(2) only to pay for losses and expenses resulting from the catastrophe year for which the proceeds were disbursed, during subsequent years; and

(3) after all losses and expenses resulting from the catastrophe year for which the proceeds were disbursed are paid, only in accordance with Insurance Code § 2210.608(b) and § 5.4134 of this title.

Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.