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 5.4161 - Member Assessments Other than Assessments for Reinsurance in Excess of the Association's Statutory Minimum Funding Level
Current through Reg. 50, No. 13; March 28, 2025
(a) The association, with the approval of the Commissioner, must assess members as provided by Insurance Code Chapter 2210.
(b) The association must provide, in the aggregate for the catastrophe year, the following information when requesting the Commissioner to approve a class 1, class 2, or class 3 assessment under Insurance Code §§ 2210.0725, 2210.074, or 2210.0742, as applicable:
(c) If all or any portion of the authorized principal amount of class 1 public securities requested under § 5.4124 or § 5.4125 of this title (relating to Issuance of Class 1 Public Securities before a Catastrophic Event and Issuance of Public Securities after a Catastrophic Event) cannot be issued based on the factors described in § 5.4135 of this title (relating to Marketable Public Securities; the Amount of Class 1 Public Securities that Cannot be Issued; Market Conditions and Requirements; and Cost-Benefit Analysis), the association may request and the Commissioner may approve the imposition of class 1 assessments as provided in this section.
(d) In its request to the Commissioner to approve the imposition of assessments under subsection (c) of this section, the association must submit the following information:
(e) The association must request the issuance of the statutorily authorized principal amount of class 1 public securities before the association may request the Commissioner approve a class 1 assessment under Insurance Code § 2210.0725.
(f) The association must request the issuance of the statutorily authorized principal amount of class 2 public securities before the association may request the Commissioner approve a class 2 assessment under Insurance Code § 2210.074.
(g) The association must request the issuance of the statutorily authorized principal amount of class 3 public securities before the association may request the Commissioner approve a class 3 assessment under Insurance Code § 2210.0742.
(h) If the Commissioner approves the imposition of assessments under subsection (c) of this section, any class 2 and class 3 public securities must be issued as provided by Insurance Code Chapter 2210 and these rules.
(i) The association may use the proceeds from assessments only for losses and expenses resulting from the catastrophe year for which the assessments were made.