Texas Insurance Code 942.001 – Definitions
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Terms Used In Texas Insurance Code 942.001
- 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.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
In this chapter:
(1) “Attorney in fact” means an individual, firm, or corporation who, under a power of attorney or other appropriate authorization of the attorney in fact, acts for subscribers of an exchange by issuing reciprocal or interinsurance contracts.
(2) “Exchange” means a reciprocal or interinsurance exchange and includes the office through which a reciprocal or interinsurance contract is exchanged.
(3) “Reciprocal or interinsurance contract” means an insurance policy or other contract that provides indemnity among a group of subscribers for certain losses.
(4) “Subscriber” means an individual, partnership, or corporation who, through an attorney in fact, enters into a reciprocal or interinsurance contract.