SECTION 5.9913. Authority of Agents and Commissions

(a) Upon request, an agent, may assist any owner of residential property in completion and submission of an application for insurance on forms prescribed by the Association.

(b) No agent, even if licensed to represent one or more member insurers of the Association with respect to policies not underwritten by the Association, shall hold himself out as an agent of the Association.

(c) A commission shall be paid pursuant to a commission schedule set by the Governing Committee and approved by the Commissioner. The commission shall be based on paid gross written premiums and subject to adjustment based on policy changes and cancellations. The agent shall remit the gross premium collected on an Association policy to the Association, and the Association will pay the commission.

(d) The Association shall establish minimum requirements and performance standards for agents who submit applications to the Association or renew business in the Association. These requirements and standards shall be designed to ensure the efficient transmission of applications, forms, notices, and money from the agent to the Association and visa versa, ensure the efficient operation of the Association, and the efficient and convenient servicing of applicants and policyholders. The Association may require that agents demonstrate and certify compliance with these requirements and standards. The Association shall have the power to bar an agent from submitting new applications to or renewing business in the Association if the agent refuses to demonstrate and certify compliance with these requirements and standards or the agent violates any of these requirements or standards. Such minimum requirements and performance standards shall be binding upon any agent as a condition of such agent's request for an inspection, submission of an application, receipt of commissions from the Association, or other act in connection with the Association. The Association may contract with agents who meet the Association's standards and may limit applications to the Association to those agents. The Association shall not be required to appoint agents.

(e) The Association may limit communications with agents to website communications only.

(f) An applicant may only apply to the Association through an agent.

Source Note: The provisions of this §5.9913 adopted to be effective May 28, 2003, 28 TexReg 4153