CHAPTER 2153. GROUP MARKETING OF AUTOMOBILE INSURANCE FOR PERSONS OVER 55 YEARS OF AGE
INSURANCE CODE
TITLE 10. PROPERTY AND CASUALTY INSURANCE
SUBTITLE G. POOLS, GROUPS, PLANS, AND SELF-INSURANCE
CHAPTER 2153. GROUP MARKETING OF AUTOMOBILE INSURANCE FOR PERSONS
OVER 55 YEARS OF AGE
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2153.001. DEFINITIONS. In this chapter:
(1) "Group automobile insurance" means automobile insurance
that:
(A) covers individuals who are over 55 years of age; and
(B) is offered under a group marketing plan.
(2) "Group marketing" means the marketing of group automobile
insurance to an eligible group under Section 2153.052.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.002. APPLICABILITY OF CERTAIN PROVISIONS. Sections
4001.051 and 4001.053 do not apply to a group participating in a
group marketing plan under this chapter.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.003. RULES. The commissioner may adopt any rules
necessary to carry out the provisions of this chapter.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
SUBCHAPTER B. CONDITIONS FOR ISSUANCE OF GROUP AUTOMOBILE
INSURANCE
Sec. 2153.051. AUTHORIZATION FOR ISSUANCE OF GROUP AUTOMOBILE
INSURANCE. An insurer may issue group automobile insurance in
this state if the conditions of Sections 2153.054(b),
2153.055-2153.059, and 2153.103 are met.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.052. ELIGIBILITY OF GROUP. (a) To be eligible for
group marketing, a group must:
(1) have existed for at least six months before the date the
group automobile insurance is purchased; and
(2) be organized for a purpose other than to become an insurance
group under this chapter.
(b) The group may include any group that is actuarially credible
for underwriting purposes.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.053. ELIGIBILITY OF GROUP MEMBER. A member of a group
described by Section 2153.052 is eligible to participate in a
group marketing plan if the member is:
(1) in good standing with the group;
(2) over 55 years of age; and
(3) authorized to operate a motor vehicle in this state.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.054. GUARANTEED ISSUE. (a) An insurer shall issue
group automobile insurance:
(1) on a guaranteed basis under a single insurance program;
and
(2) without individual underwriting selection or individual
proof of insurability.
(b) An insurer that issues group automobile insurance and the
insured group shall accept for participation in the group
marketing plan any member of the group who is eligible under
Section 2153.053 and who wants to participate.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.055. INSURER QUALIFICATIONS. To qualify to write
group automobile insurance, an insurer:
(1) must be authorized to engage in the business of automobile
insurance in this state;
(2) must also be engaged in the business of writing automobile
insurance for independent individual risks; and
(3) may not be organized solely to provide group automobile
insurance.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.056. VEHICLES COVERED. A group marketing plan must
provide that a motor vehicle is eligible for group automobile
insurance coverage only if the vehicle is owned by a group member
or the member's spouse jointly or severally.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.057. INDIVIDUAL POLICIES. An insurer shall issue an
individual policy to each participating group member.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.058. GROUP PAYMENT OF PREMIUMS. An insurer shall
provide group automobile insurance under an agreement under which
the group periodically pays the premiums on the policies to the
insurer.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.059. LIMITATIONS ON CANCELING INSURANCE. (a) An
insurer may not cancel the insurance of a group member unless:
(1) the member fails to pay the premiums; or
(2) the insurance for the entire group is canceled.
(b) An insurer that cancels insurance under Subsection (a) shall
provide to each group member whose insurance is canceled the same
notice of cancellation the insurer provides for cancellation of
individual automobile insurance policies.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
SUBCHAPTER C. RECORDS, RATES, AND FORMS
Sec. 2153.101. MAINTENANCE OF RECORDS. An insurer that writes
insurance under a group marketing plan shall maintain separate
experience data on the group marketing plan business, including
complete records of premium income, losses, and expenses, so that
the experience may be fairly ascertained.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.102. RATES. Rates for group automobile insurance are
determined in the manner provided by Chapter 2251 and Article
5.13-2, to the extent that those laws apply.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2153.103. POLICY FORMS. An insurer that writes group
automobile insurance shall use policy forms:
(1) prescribed by the commissioner and authorized for use by
Section 2301.052(b); or
(2) filed and in effect as provided by Section 2301.052(a).
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.