(a) In general.
(1) The comptroller must administer the CRTF in accordance
with Insurance Code Chapter 2210 and this subchapter.
(2) The comptroller must ensure that all money received
from the association under subsection (b) of this section is deposited
with the trust company in the CRTF.
(3) The trust company must receive, disburse, invest,
hold, and manage all money deposited in the CRTF.
(4) All money, including investment income, deposited
in the CRTF constitutes state funds to be held by the comptroller
outside the state treasury on behalf of, and with legal title in,
the department until disbursed as provided by Insurance Code Chapter
2210 and this subchapter.
(b) Payment of funds to the CRTF.
(1) Except as provided by statute, on an annual basis,
the association must pay the net gain from operations of the association
directly to the comptroller for deposit with the trust company in
the CRTF.
(2) In a period acceptable to the trust company and
the comptroller, but not more frequently than monthly, the association
must pay all premium surcharges collected under Insurance Code §2210.259
during the preceding period, and accumulated investment income on
those premium surcharges, directly to the comptroller for deposit
with the trust company in the CRTF. Premium surcharges the association
collects under Insurance Code §2210.259 and investment income
on those funds are not gross premium or other revenue of the association
and must be accounted for separately from the association's gross
premium and other revenue.
(3) As necessary, the association must pay directly
to the comptroller for deposit with the trust company in the CRTF
all:
(A) excess public security proceeds resulting from
Insurance Code §2210.608; and
(B) excess premium surcharges resulting from Insurance
Code §2210.611 and §5.4144 of this title (relating to Excess
Premium Surcharge Revenue).
(4) All deposits received by the trust company under
this subsection must be deposited in the CRTF immediately on receipt.
(c) Maintenance of the CRTF.
(1) In maintaining and managing the CRTF, the trust
company has the same duty of care that applies to the comptroller
as trustee of funds in the treasury.
(2) The department will pay the trust company an amount
sufficient to reimburse the trust company for the actual monthly costs
of administering and maintaining the CRTF. The trust company must
deduct the appropriate amount directly from the CRTF's earnings and
advise the department monthly in writing of the amount of these costs.
(3) The trust company must submit to the department
a report of all transactions relating to the CRTF promptly after the
end of each month. The trust company must furnish other information
relating to the CRTF as the department may reasonably request from
time to time.
(4) The trust company must keep a book of records in
which the complete and correct entries are made of all transactions
relating to the receipts, disbursements, deposits, withdrawals, and
transfers in the CRTF in accordance with generally accepted accounting
principles. The records must be available for inspection by an authorized
representative of the department at all reasonable hours of the business
day and under reasonable conditions.
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