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Home > Title 28 > Part 1 > Chapter 13 >Subchapter D > Rule 13.306
TITLE 28 - INSURANCE
PART 1 - TEXAS DEPARTMENT OF INSURANCE
CHAPTER 13 - MISCELLANEOUS INSURERS AND OTHER REGULATED ENTITIES
SUBCHAPTER D - RISK RETENTION GROUPS AND PURCHASING GROUPS
SECTION/RULE §13.306 - Operation by Members Only
Chapter Review Date 06/08/2021

(a) Every group doing business in Texas as a risk retention group shall be operated only by its members collectively.(b) In this section, a group is operated only by its members collectively if the members collectively retain the power to direct the affairs of the group and to enter at arm's length into transactions with suppliers of goods and services.(c) Any group or organization that fails to conform to this section shall not have the status of a risk retention group under the Insurance Code, Article 21.54.

Source Note: The provisions of this §13.306 adopted to be effective March 8, 1991, 16 TexReg 1290.

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