Texas Insurance Code

§ 887.056 — RECOVERY ON BOND

IN § 887.056Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 887. PROVISIONS APPLICABLE TO CERTAIN MUTUAL ASSESSMENT COMPANIES · Art. B. GENERAL POWERS AND DUTIES; OFFICERS AND DIRECTORS

Statute text

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(a)On receipt of information that an officer of an association has violated the terms of a bond under Section 887. 054 or 887.055, the department shall demand from the officer a written explanation of the charge.

(b)If after an explanation under Subsection (a) the department is not satisfied regarding the existing facts in controversy, the department shall:

(1)notify the officer to appear in Travis County, not earlier than the 11th day or later than the 16th day after service of notice, with any records and other information the department considers proper; and

(2)conduct an examination into the charge against the officer.

(c)If after an examination under Subsection (b) the department is satisfied that the officer violated the terms of the bond, the department shall:

(1)immediately notify the company executing the bond;

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Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.