|(a) A limited service agreement is an agreement between
an insurer or its managing general agent and the agent of record on
an association policy being acquired or assumed by the insurer, and
which provides that the agent continue to provide service to the policyholder
as authorized under Insurance Code Chapter 2210, Subchapter O.
(b) A limited service agreement must include the prevailing
terms, conditions, and commissions of the agent that exist under the
association plan of operation and guidelines at the time the policy
is acquired or assumed by the insurer. The agreement will expire at
the expiration of the third renewal of the insurer's policy.
(c) An appointment is not required for a limited service
agreement if the agent only services association policies that have
been assumed or transferred under this division and Insurance Code
Chapter 2210, Subchapter O.
(d) This section does not prohibit the agent and insurer
from agreeing to enter into an appointment and agent agreement on
(e) An insurer must be bound by the terms of a limited
service agreement entered into by its managing general agent in accordance
with subsection (a) of this section.