(a) An exchange is exempt from the operation of all insurance laws of this state except as specifically provided in this chapter or unless exchanges are specifically mentioned in the other law.
(b) An exchange is subject to:
(1) Subchapter A, Chapter 5, Chapter 254, Subchapters A and B, Chapter 1806, and Subtitle C, Title 10;
(2) Articles 5.35, 5.39, and 5.40;
(3) Article 5.13-2, as provided by that article, Chapter 2251, as provided by that chapter, and Chapter 2301, as provided by that chapter;
(4) Chapters 402, 541, and 2253;
(5) Subchapter A, Chapter 401, and Sections 401.051, 401.052, 401.054, 401.055, 401.056, 401.057, 401.058, 401.059, 401.060, 401.061, 401.062, 401.151, 401.152, 401.155, and 401.156;
(6) Subchapter B, Chapter 404;
(7) Subchapter C, Chapter 1806; and
(8) Sections 38.001, 501.159, 822.203, 822.205, 822.210, 822.212, 861.254(a)-(f), 861.255, 862.001(b), 862.003, 2002.002, 2002.005, 2002.051, and 2002.052.

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Terms Used In Texas Insurance Code 942.003

  • 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.
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005

(c) Chapter 2007 applies to rates for motor vehicle insurance written by an exchange.
(d) The provisions of the Texas Business Corporation Act that relate to the indemnification of officers and directors apply to an exchange.
(e) Subscribers and their attorney in fact are subject to Sections 822.051, 822.057-822.060, and 822.201, except that:
(1) the declaration of the subscribers prescribed by Section 942.053 replaces the articles of incorporation; and
(2) the unencumbered surplus of the exchange constitutes capital structure for purposes of Section 822.060.
(f) An exchange is subject to Chapter 2210, as provided by that chapter.

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