SECTION 5.9400. Residential Property Insurance Market Assistance Program Executive Committee

(a) Purpose and Scope of this Section. Adopted pursuant to Texas Civil Statutes, Article 6252-33, which governs State Agency Advisory Committees, the purpose of this section is to specify the purpose, task, reporting requirements, membership composition, and duration of the Residential Property Insurance Market Assistance Program Executive Committee (the Executive Committee), which operates pursuant to the Insurance Code, Article 21.49-12.

(b) Purpose of the Executive Committee. The purpose of the Executive Committee is to assist the Commissioner in the administration of the Residential Property Insurance Market Assistance Program (MAP) as authorized by the Insurance Code, Article 21.49-12.

(c) Tasks. The tasks of the Executive Committee are specified in the Insurance Code, Article 21.49-12, and include those tasks specified in the following paragraphs (1)-(7).

(1) The Executive Committee shall develop and submit a MAP plan of operation to the Commissioner for consideration of adoption by rule.

(2) The Executive Committee shall advise and consult with the Commissioner in the administration of the MAP.

(3) The Executive Committee shall review the demand for and performance of the MAP six months following the approval of the plan of operation, and at least annually thereafter as necessary, and report to the Commissioner as to the necessity for continued operation of a voluntary MAP, need for establishment of a mandatory MAP, or the need for establishment of a FAIR Plan pursuant to the Insurance Code, Article 21.49A, or make other recommendations to the Commissioner that the Executive Committee deems appropriate.

(4) The Executive Committee may advise the Commissioner on the need for subcommittees to carry out MAP functions.

(5) The Executive Committee shall advise the Commissioner on what information is needed for the Executive Committee's periodic review of the MAP.

(6) The Executive Committee may advise the Commissioner on any other rules in addition to the plan of operation that are needed to implement the MAP.

(7) The Executive Committee shall perform other tasks as requested by the Commissioner pursuant to the Insurance Code, Article 21.49-12.

(d) Reporting Requirements. The reporting requirements of the Executive Committee are specified in the Insurance Code, Article 21.49-12, and include those requirements outlined in the following paragraphs (1)-(3).

(1) The Executive Committee shall, within 180 days following the August 28, 1995, effective date of Article 21.49-12, develop and submit the MAP plan of operation to the Commissioner for consideration for adoption by rule.

(2) The Executive Committee shall review the demand for and performance of the program six months following the approval of the plan of operation, and at least annually thereafter as necessary, and report to the Commissioner as to the necessity for continued operation of a voluntary MAP, need for establishment of a mandatory MAP, or the need for establishment of a FAIR Plan pursuant to the Insurance Code, Article 21.49A, or make other recommendations to the Commissioner that the Executive Committee deems appropriate.

(3) The Executive Committee shall provide, at the time as requested by the Commissioner, any other reports or information requested by the Commissioner and necessary to the Commissioner for the implementation of the Insurance Code, Article 21.49-12.

(e) Membership.

(1) Appointed by the Commissioner pursuant to the Insurance Code, Article 21.49-12, §3, the Executive Committee is composed of 11 members: five members who represent the interests of insurers, four public members, and two members who are licensed local recording agents.

(2) The Commissioner or the Commissioner's designated representative shall be an ex officio member of the Executive Committee and must be present in every meeting of the Executive Committee.

(3) Any appointee resigning from the Executive Committee shall be replaced by the Commissioner with another appointee representing the same constituency as the resigning appointee.

(f) Duration. Pursuant to the Insurance Code, Article 21.49-12, §6(b), the MAP program shall be terminated only upon approval of the Commissioner of Insurance, but in no event earlier than 48 months following the commencement date of the initial plan of operation. Termination of the MAP shall constitute termination of the membership and operation of the Executive Committee.

Source Note: The provisions of this §5.9400 adopted to be effective December 29, 1995, 20 TexReg 10784; transferred effective April 16, 1999, 24 TexReg 3092.