(a) The association may employ or retain persons to perform the functions necessary or proper under this chapter, including persons necessary to handle the association’s financial transactions.
(b) On the commissioner’s approval, the association shall reimburse the department out of the guaranty fee account for the cost, including reasonable and necessary expenses, to employ or retain one or more persons to:
(1) audit and review agent escrow and trust accounts, financial condition, and compliance with applicable statutes and rules;
(2) report to the commissioner on the accounts, condition, and compliance; or
(3) supervise a person employed or retained to perform audit and review under Subdivision (1).

Ask an insurance law question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Texas Insurance Code 2602.103

  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005

(c) A person employed or retained under Subsection (b) acts solely under the direction of and as assigned by the commissioner but shall report the person’s activity and expenses to the association on the request of the association.
(d) Repealed by Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 31, eff. September 1, 2019.