Sec. 2203.303.  POLICYHOLDER'S STABILIZATION RESERVE FUND FOR NURSING HOMES AND ASSISTED LIVING FACILITIES.  (a)  The policyholder's stabilization reserve fund for nursing homes and assisted living facilities is collected and administered by the association as provided by this section, Section 2203.304, and the plan of operation.
(b)  The policyholder's stabilization reserve fund shall be:
(1)  credited with:
(A)  all policyholder's stabilization reserve fund charges collected under Section 2203.304; and
(B)  the net earnings on liability insurance policies issued to nursing homes and assisted living facilities;
(2)  charged with any deficit sustained by nursing homes and assisted living facilities from the association's operation during the previous year;
(3)  treated as a liability of the association along with, and in the same manner as, premium and loss reserves; and
(4)  valued annually by the board of directors as of the close of the preceding year.
(c)  The policyholder's stabilization reserve fund under this section, and any earnings of the fund, are state funds and shall be held by the comptroller outside the state treasury on behalf of, and with legal title in, the department.  No part of the fund or the earnings of the fund may inure to the benefit of an association member, a policyholder, or another individual.  The fund assets may be used in accordance with the association's plan of operation only to implement this chapter and for the purposes of the association, including to make payment to satisfy, wholly or partly, the liability of the association regarding a claim made on a policy written by the association.
(d)  Notwithstanding Sections 11, 12, and 13, Article 21.49-3, the policyholder's stabilization reserve fund under this section may be terminated only by law.
(e)  Notwithstanding Section 11, Article 21.49-3, on termination of the policyholder's stabilization reserve fund under this section, all assets of the fund shall be transferred to the general revenue fund to be appropriated for purposes related to ensuring the provision of the kinds of liability insurance coverage that the association may provide under this chapter to nursing homes and assisted living facilities.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.