less than three years
from the last prior adjustment.
(IV) the extended coverage and other allied lines portion of
the following policies, which shall not be restored to manual rate levels,
and which shall be calculated as follows:
(-a-) 40% of the total policy premium or the combined actual
extended coverage and other allied lines premium charged, whichever is the
greater, for any commercial policy issued pursuant to the Insurance Code,
Article 5.13-2 or Article 5.26(c), or for policies issued pursuant to the
Insurance Code, Article 5.31; or
(-b-) 40% of the total policy premium or the combined actual
extended coverage and other allied lines premium charged, whichever is greater,
for any property insurance policy written by an insurance company that is
not authorized to transact property insurance in Texas, and which is affiliated
under common management or control of an insurance company licensed to transact
property insurance in Texas.
(iii) For association policies with inception dates on and
after January 1, 1983 through December 31, 1987, inclusive, net direct premiums
means the sum of the following premiums:
(I) 90% of the direct written premiums on the extended coverage
line of business as reflected on line two, column (1), of the insurer's last
Texas annual statement;
(II) 90% of the extended coverage portion of the direct written
premiums on the multiple peril line of business as reported on line eight,
column (1), of the insurer's last Texas annual statement; and
(III) 40% of the direct written premiums on the homeowners'
multiple peril line of business as reported on line four, column (1), of the
insurer's last Texas annual statement.
(iv) For association policies with inception dates on and after
January 1, 1978, through December 31, 1982, inclusive, net direct premiums
means the sum of the following premiums:
(I) 90% of the direct written premiums on the extended coverage
line of business as reflected on line two, column (1), of the insurer's last
Texas annual statement;
(II) 90% of the extended coverage portion of the direct written
premiums on the multiple peril line of business as reported on line eight,
column (1), of the insurer's last Texas annual statement; and
(III) 40% of the direct written premiums on the homeowners'
multiple peril line of business as reported on line four, column (1), of the
insurer's last Texas annual statement.
(O) Secretary-treasurer--The secretary-treasurer of the Texas
Catastrophe Property Insurance Association.
(P) Texas windstorm and hail insurance--Deductible insurance
against direct loss and indirect losses resulting from a direct loss to insurable
property as a result of windstorm or hail as such terms shall be defined and
limited in policies and forms approved by the Commissioner. The deductible
amount which shall be applied to all risks written by the association shall
be determined by the board of directors and approved by the Commissioner.
(Q) Vice chair or vice chair of the board--The vice chair of
the board of directors of the Texas Catastrophe Property Insurance Association.
(b) Operational Procedures of the Texas Catastrophe Property
Insurance Association.
(1) Members.
(A) Membership. The membership of the Texas Catastrophe Property
Insurance Association shall consist of all insurers required to be members
of the association by the Act, §4; provided, however, that all insurers
which were not members of the association prior to the effective date of Senate
Bill 659, 64th Legislature, 1973, and which became members of the association
by virtue of Senate Bill 659 shall participate in the association commencing
on January 1, 1974, in the same manner as for all other members of the association,
provided, further, that for the purposes of determining participation in the
association two or more members having a common ownership or operating in
this state under common management or control shall be treated as if they
constituted a single member.
(B) Notice of meetings. Written or printed notice stating the
place, day, and hours of the meeting, and in case of a special meeting, the
purpose or purposes for which the meeting is called, shall be delivered not
less than 10 nor more than 50 days before the date of the meeting, either
personally or by mail, by or at the direction of the chair of the board of
directors, the secretary-treasurer, or other person calling the meeting, to
each member entitled to vote as such meeting.
(C) Meetings. The annual meeting of the members shall be held
at such time and place in March of each year as may be designated by the board
of directors, for the purpose of electing directors and for the transaction
of such other business as may come before the meeting. If the election of
directors shall not be held on the day designated for any annual meeting of
the members, the board of directors shall cause the election to be held at
a special meeting of the members as soon thereafter as conveniently may be.
The board of directors shall designate the place for the annual meeting of
the members, but if no place is so designated, then the meeting shall be held
at the office of the association. The board of directors, the chair of the
board of directors, or 25% of the members of the association may call a special
meeting of the members and designate any place as the place of such meeting.
If no such designation is made, the place of such meeting shall be the aforesaid
office of he association.
(D) Quorum. Twenty-five percent of the members represented
by person or by proxy shall constitute a quorum at a meeting of the members.
If less than 25% of the members are represented at a meeting, a majority of
the outstanding members so represented may adjourn the meeting from time to
time without further notice. At the next meeting after adjournment at which
a quorum shall be present or represented, any business may be transacted at
the meeting as originally notified. The members represented at a duly organized
meeting may continue to transact business until adjournment, notwithstanding
the withdrawal of enough persons to leave less than a quorum.
(E) Voting.
(i) The secretary-treasurer of the association shall make,
at least 10 days before each meeting of the members of the association, a
complete list of the members entitled to vote at such meeting, arranged in
alphabetical order, with the address of each member and the number of votes
allocated to each member which list, for a period of 10 days prior to such
meeting, shall be kept on file at the principal office of the association
and shall be subject to inspection by any member or its agent at any time
during usual business hours. Such list shall also be produced and kept open
at the time and place of the meeting and shall be subject to inspection by
any member during the whole time of such meeting. Failure to comply with the
requirements of this clause shall not affect the validity of any action taken
at such meeting.
(ii) There shall be 1,000 outstanding votes allocated to the
members of the association by the secretary-treasurer. The secretary-treasurer
shall determine the percentage of each member's participation in the writings,
expenses, profits, and losses of the association computed on the date of the
end of the last calendar year preceding such annual meeting at which information
necessary to make such computation is available from the Department, and shall
allocate to each member a like percentage of the total outstanding votes allocated
to the members of the association. Each member shall be entitled to vote its
allocated number of outstanding shares at the annual meeting and each special
meeting until the next annual meeting of the association at which time the
outstanding votes shall be again allocated to the members in the manner set
forth previously.
(iii) A member may vote by proxy executed in writing by the
member. No proxy shall be valid after the next annual meeting after the date
of its execution unless otherwise provided in the proxy. Each proxy shall
be revocable unless expressly provided therein to be irrevocable.
(iv) The votes allocated to a member may be voted by such officer,
agent, or proxy as the bylaws of such member may authorize or, in the absence
of such authorization, as such member may determine.
(v) Voting on any question or in any election may be by voice
vote or by show of hands unless the presiding officer shall order, or any
member shall demand, that voting be by written ballot.
(F) Rules. To the extent applicable, Robert's Rules of Order
shall govern the conduct of and procedure at all meetings of the members.
(2) Directors.
Cont'd... |