SECTION 5.4143. Premium Surcharge Trust Fund

(a) As required by any agreements between the association, TPFA, and the trust company, if public securities payable under Insurance Code §2210.6132 are outstanding, insurers may be required to deposit contingent surcharges directly into the premium surcharge trust fund or funds.

(b) If insurers are required to direct deposit under subsection (a) of this section, then the association must provide notice to the commissioner and insurers no later than 60 days before the insurers must implement the contingent surcharge.

(c) The notice under subsection (b) of this section must include all applicable deposit instructions, including any required routing information and account numbers.

(d) Insurers must deposit the funds into the appropriate accounts on the date the funds must otherwise be remitted to the association under §5.4186 of this division (relating to Remittance of Contingent Surcharges).

(e) If insurers are not required to direct deposit under subsection (a) of this section, then the association must deposit the collected contingent surcharges on receipt into the premium surcharge trust fund or funds.

(f) The association may not directly or indirectly use, borrow, or in any manner pledge or encumber contingent surcharges collected or to be collected by the association except for the payment of the applicable public security obligations and as otherwise authorized in this title.

(g) The trust company must deposit any net investment income earned on the contingent surcharges into the appropriate trust fund accounts while these amounts are on deposit.

Source Note: The provisions of this §5.4143 adopted to be effective March 9, 2016, 41 TexReg 1697