(a) The plan of operation may provide that, on approval of the board and the commissioner, a power or duty of the association is delegated to a corporation or other organization that:
(1) performs 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) A power or duty under Section 463.261(c) or Subchapter D, other than a duty under Section 463.161(c), may not be delegated under this section.

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Terms Used In Texas Insurance Code 463.106

  • 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 corporation or other organization to which a power or duty is delegated shall be:
(1) reimbursed for a payment made on behalf of the association; and
(2) paid for performing any other function of the association.

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