CHAPTER 962. JOB PROTECTION INSURANCE - Texas Statutes

INSURANCE CODE

TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES

SUBTITLE H. OTHER ENTITIES

CHAPTER 962. JOB PROTECTION INSURANCE

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 962.001. GENERAL DEFINITIONS. In this chapter:

(1) "Insured" means an individual whose indemnification against

income loss is provided because of the individual's membership in

a company or association that offers a job protection insurance

plan.

(2) "Insurer" has the meaning assigned by Section 801.001.

(3) "Person" means an individual, corporation, association, or

other legal entity.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.002. JOB PROTECTION INSURANCE DEFINED. (a) In this

chapter, "job protection insurance" means insurance providing

indemnity that is:

(1) paid for loss of position arising from discharge or

suspension;

(2) payable in installments that do not exceed the average

monthly wage of the insured; and

(3) provided to:

(A) conductors, engineers, motormen, brakemen, switchmen,

firemen, dispatchers, clerks, operators, trackmen, signalmen, and

maintenance-of-way personnel of steam and electric railways; and

(B) bus drivers and truck drivers employed by common carriers.

(b) The term "job protection insurance" does not include a job

benefit fund administered by and through a labor union only for

the union's members.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.003. COMPLIANCE WITH CHAPTER REQUIRED. An insurer must

comply with this chapter to write the insurance coverages

authorized by Section 962.101.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.004. APPLICABILITY OF OTHER LAW. An insurer operating

under this chapter is subject to the following provisions, if not

in conflict with this chapter:

(1) the other chapters of this code, including:

(A) Chapter 221;

(B) Chapter 281, other than any minimum capital and surplus

requirements specified in that chapter;

(C) Chapter 822, including Sections 822.203, 822.205, 822.210,

and 822.212;

(D) Chapter 861; and

(E) Chapter 402; and

(2) Section 171.0525, Tax Code.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.005. AGENTS. Title 13 applies to the licensing and

regulation of an agent authorized to solicit job protection

insurance for an insurer operating under this chapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

SUBCHAPTER B. AUTHORITY TO ENGAGE IN BUSINESS

Sec. 962.051. QUALIFICATIONS FOR CERTIFICATE OF AUTHORITY. An

insurer may not be issued a certificate of authority to operate

under this chapter unless:

(1) it or a predecessor was writing the insurance coverages

authorized by Section 962.101 on or before January 1, 1920, in at

least one state; and

(2) it had policyholders in this state on August 29, 1983, and

provides proof of that fact to the department.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.052. ISSUANCE OF CERTIFICATE OF AUTHORITY. (a) The

commissioner shall issue a certificate of authority to a domestic

or foreign insurer that applies for a certificate if:

(1) the applicant has:

(A) complied with the requirements of this chapter and all other

requirements imposed on the applicant by law; and

(B) paid any deposit imposed by law; and

(2) the operational history of the applicant indicates a

condition such that the expanded operation of the applicant in

this state or the applicant's operations outside this state will

not create a condition that might be hazardous to the applicant's

policyholders or creditors or to the public, when that

operational history is reviewed in conjunction with:

(A) the applicant's loss experience;

(B) the kinds and nature of risks insured;

(C) the financial condition of the applicant and the applicant's

ownership;

(D) the applicant's proposed method of operation;

(E) the applicant's affiliations;

(F) the applicant's investments;

(G) any contracts leading to contingent liability or agreements

relating to guaranty and surety, other than insurance; and

(H) the ratio of the applicant's total annual premium and net

investment income to commission expenses, general insurance

expenses, policy benefits paid, and required policy reserve

increases.

(b) The commissioner shall file in the department's offices any

documents delivered to the commissioner under this section.

(c) The certificate of authority authorizes the insurer to

engage in the kind or kinds of business in this state specified

in the certificate.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.053. COMPLIANCE WITH STATE LAW REQUIRED. A certificate

of authority issued under this chapter continues in effect on the

condition that the insurer continue to comply with the laws of

this state.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.054. INSURERS NOT MEETING CERTAIN REQUIREMENTS. To

write the insurance coverages authorized by Section 962.101, a

domestic or foreign insurer that does not meet the requirements

of Sections 962.051 and 962.052 must comply with Chapters 822 and

861.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.055. CAPITAL AND SURPLUS REQUIREMENTS. A domestic or

foreign insurer operating under this chapter shall maintain the

minimum capital and surplus required by Sections 822.054,

822.210, and 822.211.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

SUBCHAPTER C. COVERAGE

Sec. 962.101. AUTHORIZED COVERAGES. A domestic or foreign

insurer operating under this chapter may write:

(1) job protection insurance; and

(2) insurance that:

(A) insures an individual described by Section 962.002(a)

against bodily injury or death by accident or against disability

on account of sickness or accident;

(B) grants specific hospital benefits and medical, surgical, and

sick-care benefits to an individual and the individual's family;

and

(C) provides reimbursement of funeral expenses in an amount not

to exceed $200 to any person in connection with the coverage.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.102. OTHER COVERAGES PROHIBITED. A domestic or foreign

insurer operating under this chapter may not write coverage that

is not authorized by Section 962.101.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.103. APPLICABILITY OF GUARANTY FUND LAW. A guaranty

fund established under this code does not provide coverage for

insurance written under this chapter except as specifically

provided by a law governing the fund.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

SUBCHAPTER O. ENFORCEMENT PROVISIONS

Sec. 962.701. PROHIBITED ACTS; OFFENSE. (a) A person may not:

(1) provide coverage described by Section 962.101 unless the

person holds a certificate of authority to provide that coverage;

or

(2) solicit insurance for an insurer authorized to provide

insurance coverage under this chapter unless the person holds an

insurance agent's license.

(b) A person commits an offense if the person knowingly violates

Subsection (a). An offense under this subsection is a Class B

misdemeanor.

(c) Venue for prosecution of an offense under this section is in

Travis County.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.

Sec. 962.702. REFUSAL TO ISSUE OR RENEW CERTIFICATE OF AUTHORITY

OR LICENSE; SUSPENSION OR REVOCATION. If, after notice and

hearing, the commissioner finds that the applicant, certificate

holder, or license holder has violated this chapter or another

provision of this code, the commissioner may refuse to issue or

renew a certificate of authority or a license, or may suspend or

revoke a certificate of authority or a license.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 16, eff. April 1, 2007.