Sec. 2151.154.  ASSIGNMENT DISTRIBUTION PLAN.  (a)  The plan of operation must include a voluntary, competitive limited assignment distribution plan that allows an authorized insurer to contract directly with a servicing carrier to accept assignments to the servicing carrier by the association.
(b)  A servicing carrier must be authorized to write automobile insurance in this state and must:
(1)  have written automobile liability insurance in this state for at least five years; or
(2)  be currently engaged as a servicing carrier for assigned risk automobile business in at least one other state.
(c)  After notice and hearing, the commissioner may prohibit an insurer from acting as a servicing carrier.
(d)  An authorized insurer and a servicing carrier shall determine through negotiation the terms of a contract described by this section, including the buy-out fee.
(e)  The governing committee may:
(1)  adopt reasonable rules for the conduct of business under a contract described by this section; and
(2)  establish reasonable standards of eligibility for servicing carriers.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by: 
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.058, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.058, eff. September 1, 2007.