CHAPTER 1810. PROMOTIONAL EVENT PRIZE PROGRAMS - Texas Statutes

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE A. GENERAL PROVISIONS

CHAPTER 1810. PROMOTIONAL EVENT PRIZE PROGRAMS

Sec. 1810.001. DEFINITION. In this chapter, "promotional event

prize program" means a written contract entered into in this

state for commercial marketing or promotional purposes:

(1) under which a monetary risk is transferred from one or more

parties to the contract to another party to the contract;

(2) that does not require as a condition precedent to the

imposition of contractual liability on the part of the person

accepting the risk:

(A) actual economic loss by the person who transfers the risk;

or

(B) submission of proof of economic loss by the person

transferring the risk; and

(3) that specifically states that the contract is not for

insurance and performance under the contract is not covered by

any state guaranty association.

Added by Acts 2007, 80th Leg., R.S., Ch.

246, Sec. 1, eff. May 25, 2007.

Sec. 1810.002. PROGRAM NOT INSURANCE; NOT COVERED BY GUARANTY

ASSOCIATION. A promotional event prize program does not

constitute the business of insurance in this state. A person's

claim for performance under a contract for a promotional event

prize program is not a covered claim under Chapter 462 and a

promotional event prize program is not covered by the Texas

Property and Casualty Insurance Guaranty Association or any other

state guaranty association.

Added by Acts 2007, 80th Leg., R.S., Ch.

246, Sec. 1, eff. May 25, 2007.

Sec. 1810.003. CERTAIN MARKETING PROHIBITED. A promotional

event prize program may not be marketed or described as

insurance.

Added by Acts 2007, 80th Leg., R.S., Ch.

246, Sec. 1, eff. May 25, 2007.