Texas Insurance Code 1501.306 – System Plan of Operation
Current as of: 2024 | Check for updates
|
Other versions
(a) The board shall submit to the commissioner a plan of operation and any amendments to that plan necessary or suitable to ensure the fair, reasonable, and equitable administration of the system.
(b) The commissioner, after notice and hearing, may approve the plan of operation if the commissioner determines the plan:
(1) is suitable to ensure the fair, reasonable, and equitable administration of the system; and
(2) provides for the sharing of system gains or losses on an equitable and proportionate basis in accordance with this subchapter.
Terms Used In Texas Insurance Code 1501.306
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The plan of operation is effective on the written approval of the commissioner.
(d) The plan of operation must:
(1) establish procedures for:
(A) handling and accounting for system assets and money;
(B) making an annual fiscal report to the commissioner;
(C) selecting an administering health benefit plan issuer or third-party administrator and establishing the powers and duties of the administering issuer or third-party administrator;
(D) reinsuring risks in accordance with this subchapter; and
(E) collecting assessments from reinsured health benefit plan issuers to fund claims and administrative expenses incurred or estimated to be incurred by the system, including the imposition of penalties for late payment of an assessment; and
(2) provide for any additional matter necessary to implement and administer the system.