Section 1551.214 - Selection of Bids for Purchased Coverage(a) An actuary selected by the board of trustees shall advise the board as to the actuarial soundness of the bids received under Section 1551.213.(b) The board of trustees: (1) shall select carriers to provide services that will be in the best interest of participants; and(2) is not required to select the lowest bid but shall take into consideration other relevant criteria, including ability to service contracts, past experience, and financial ability.(c) If the board of trustees selects a carrier whose bid differs from that advertised, the board shall record the deviation and shall fully justify and explain the reasons for the deviation in the minutes of the next meeting of the board.(d) The board of trustees shall notify the carriers that submitted bids of the results of the bidding.Tex. Ins. Code § 1551.214
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. 6/1/2003.