Texas Insurance Code 462.109 – Delegation of Powers and Duties
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(a) Except as provided by Subsection (b), the plan of operation may provide that, on approval of the board and the commissioner, the association may delegate by contract any or all powers or duties of the association to a corporation or other organization that:
(1) performs or will perform in two or more states functions similar to those of the association or the association’s equivalent; and
(2) provides protection not substantially less favorable and effective than that provided by this chapter.
(b) The association may not delegate a power or duty under Section 462.101(a)(2), 462.151, 462.154, 462.155, or 462.302(d) under this section.
Terms Used In Texas Insurance Code 462.109
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(c) The association shall:
(1) reimburse the corporation or other organization as a servicing facility would be reimbursed; and
(2) pay the corporation or other organization for the performance of any other functions of the association.
(d) A contract entered into under this section is subject to the performance standards imposed under Section 442.112.