Section 2151.154 - Assignment Distribution Plan(a) The plan of operation must include a voluntary, competitive limited assignment distribution plan that allows an authorized insurer to contract directly with a servicing carrier to accept assignments to the servicing carrier by the association.(b) A servicing carrier must be authorized to write automobile insurance in this state and must:(1) have written automobile liability insurance in this state for at least five years; or(2) be currently engaged as a servicing carrier for assigned risk automobile business in at least one other state.(c) After notice and hearing, the commissioner may prohibit an insurer from acting as a servicing carrier.(d) An authorized insurer and a servicing carrier shall determine through negotiation the terms of a contract described by this section, including the buy-out fee.(e) The governing committee may:(1) adopt reasonable rules for the conduct of business under a contract described by this section; and(2) establish reasonable standards of eligibility for servicing carriers.Tex. Ins. Code § 2151.154
Amended By Acts 2007, 80th Leg., R.S., Ch. 730, Sec. 3B.058, eff. 9/1/2007.Amended By Acts 2007, 80th Leg., R.S., Ch. 921, Sec. 9.058, eff. 9/1/2007.