{"data":{"id":"us-tx/tex.-insurance-code-2210.056","jurisdiction":"us-tx","citation":"Tex. Insurance Code § 2210.056","heading":"USE OF ASSOCIATION ASSETS.","body":"(a) The association's net earnings may not inure, in whole or in part, to the benefit of a private shareholder or individual.\nText of subsection effective until September 01, 2027\n(b) The association's assets may not be used for or diverted to any purpose other than to:\n(1) satisfy, in whole or in part, the liability of the association on claims made on policies written by the association;\n(2) make investments authorized under applicable law;\n(3) pay reasonable and necessary administrative expenses incurred in connection with the operation of the association and the processing of claims against the association;\n(4) satisfy, in whole or in part, the obligations of the association incurred in connection with Subchapters B-1, B-2, J, M, M-1, and M-2, including reinsurance, financing arrangements, public securities, and financial instruments; or\n(5) make remittance under the laws of this state to be used by this state to:\n(A) pay claims made on policies written by the association;\n(B) purchase reinsurance covering losses under those policies; or\n(C) prepare for or mitigate the effects of catastrophic natural events.\nText of subsection effective on September 01, 2027\n(b) The association's assets may not be used for or diverted to any purpose other than to:\n(1) satisfy, in whole or in part, the liability of the association on claims made on policies written by the association;\n(2) make investments authorized under applicable law;\n(3) pay reasonable and necessary administrative expenses incurred in connection with the operation of the association and the processing of claims against the association;\n(4) satisfy, in whole or in part, the obligations of the association incurred in connection with Subchapters B-2, J, M-1, and M-2, including reinsurance, financing arrangements, and financial instruments; or\n(5) make remittance under the laws of this state to be used by this state to:\n(A) pay claims made on policies written by the association;\n(B) purchase reinsurance covering losses under those policies; or\n(C) prepare for or mitigate the effects of catastrophic natural events.\nText of subsection effective until September 01, 2027\n(c) On dissolution of the association, all assets of the association, other than assets pledged for the repayment of public securities issued under this chapter, revert to this state.\nText of subsection effective on September 01, 2027\n(c) On dissolution of the association, all assets of the association, other than assets pledged for the repayment of financial arrangements entered into under this chapter, revert to this state.\nAdded by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.\nAmended by:\nActs 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 14, eff. June 19, 2009.\nActs 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 8, eff. September 28, 2011.\nActs 2025, 89th Leg., R.S., Ch. 895 (H.B. 3689), Sec. 2.02(a), eff. September 1, 2025.\nActs 2025, 89th Leg., R.S., Ch. 895 (H.B. 3689), Sec. 2.02(b), eff. September 1, 2027.","path":["INSURANCE CODE","TITLE 10. PROPERTY AND CASUALTY INSURANCE","SUBTITLE G. POOLS, GROUPS, PLANS, AND SELF-INSURANCE","CHAPTER 2210. TEXAS WINDSTORM INSURANCE ASSOCIATION","SUBCHAPTER B. ADMINISTRATION OF ASSOCIATION"],"source_url":"https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2210.htm#2210.056","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:21Z","sha256":"430c995c07b50121d6a6b791230dc699a0813939f3b223d5ef0ae11588d1b81d","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-insurance-code-2210.055","next":"us-tx/tex.-insurance-code-2210.057"},"notice":"GroundRules: Original legal text. Not legal advice."}