Tex.
Ins. Code Section 2203.359
Surcharge Fee
(a)
A surcharge fee is assessed against:(1)
each association member; and(2)
the association.(b)
The commissioner shall set the surcharge fee in an amount sufficient to pay all debt service on the bonds issued under this subchapter. Each association member and the association shall pay the surcharge fee as required by the commissioner by rule.(c)
The comptroller shall collect the surcharge fee and the department shall reimburse the comptroller in the manner described by Section 201.052 (Reimbursement).(d)
The commissioner, in consultation with the comptroller, may coordinate payment and collection of the surcharge fee with other payments made by association members and collected by the comptroller.(e)
Except as provided by Subsection (f), as a condition of engaging in the business of insurance in this state, an association member agrees that, if the member leaves the liability insurance market in this state, the member remains obligated to pay the member’s share of the surcharge fee assessed under this section until the bonds are retired. The amount assessed against a member under this subsection must be:(1)
proportionate to the member’s share of the liability insurance market, including automobile liability insurance, in this state as of the last complete reporting period before the date the member ceases to engage in the liability insurance business in this state; and(2)
based on the member’s gross premiums for liability insurance, including automobile liability insurance, for the member’s last reporting period.(f)
An association member is not required to pay the proportionate amount under Subsection (e) in any year in which the surcharge fee assessed against association members continuing to write liability insurance in this state is sufficient to service the bond obligation.
Source:
Section 2203.359 — Surcharge Fee, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2203.htm#2203.359 (accessed May 11, 2024).
