INSURANCE CODE - NOT CODIFIED
CHAPTER 25. JOB PROTECTION INSURANCE
Art. 25.01. Definitions
In this chapter:
(1) "Job protection insurance" means the business of providing
indemnity to conductors, engineers, motormen, brakemen, switchmen,
firemen, dispatchers, clerks, operators, trackmen, signalmen, and
maintenance of way personnel of steam and electric railways and to
bus drivers and truck drivers employed by common carriers for loss
of position arising from discharge or suspension, which indemnity
is payable in installments that do not exceed the average monthly
wage of the insured; but shall not apply to job benefit funds
administered by and through labor unions for their members only.
(2) "Board" means the State Board of Insurance.
(3) "Carrier" has the meaning provided by Article 1.14 of this code.
(4) "Insured" means one whose indemnification against income loss
is provided by virtue of his membership in a company or association
that offers a job protection insurance plan.
(5) "Person" means an individual, corporation, association, or any
other legal entity.
Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug.
29, 1983.
Art. 25.02. Authorized Coverages; Limitations
(a) The kinds of insurance to by written by domestic and foreign
insurance carriers operating under this chapter are as follows:
(1) to provide indemnity to conductors, engineers, motormen,
brakemen, switchmen, firemen, dispatchers, clerks, operators,
trackmen, signalmen, and maintenance of way personnel of steam and
electric railways and to bus drivers and truck drivers employed by
common carriers for loss of position arising from discharge or
suspension, which indemnity is payable in installments that do not
exceed the average monthly wage of the insured; and
(2) to insure such persons against bodily injury or death by
accident or against disability on account of sickness or accident,
to grant specific hospital benefits and medical, surgical, and
sick-care benefits to persons and their families, and to provide
reimbursement of funeral expenses in an amount not to exceed $200 to
any person in conjunction with this coverage.
(b) Any coverage that is not authorized by Subdivisions (1) and (2)
of Section (a) of this article is specifically prohibited.
(c) On or after the effective date of this chapter, an insurance
carrier may not write the coverages specified in Subdivisions (1)
and (2) of Section (a) of this article except by complying with this
chapter.
Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug.
29, 1983.
Art. 25.03. Capital and Surplus
Domestic and foreign insurance carriers operating under this
chapter shall maintain the minimum capital and surplus required by
Article 2.02 of this code.
Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug.
29, 1983.
Art. 25.04. Certificate of Authority
(a) An insurance carrier may not be granted a certificate of
authority to operate under this chapter unless:
(1) it or a predecessor carrier was writing the insurance coverages
authorized by Subdivisions (1) and (2) of Section (a), Article
25.02, of this chapter on or before January 1, 1920, in at least one
state; and
(2) it has policyholders in this state on the effective date of this
chapter and provides proof of that fact to the board.
(b) If a domestic or foreign carrier has complied with the
requirements of this chapter and all other requirements imposed on
the company by law; has paid any deposit imposed by law; and the
operational history of the company when reviewed in conjunction
with its loss experience, the kinds and nature of risks insured, the
financial condition of the company and its ownership, its proposed
method of operation, its affiliations, its investments, any
contracts leading to contingent liability or agreements in respect
to guaranty and surety, other than insurance, and the ratio of total
annual premium and net investment income to commission expenses,
general insurance expenses, policy benefits paid and required
policy reserve increases, indicates a condition such that the
expanded operation of the company in this state or its operations
outside this state will not create a condition that might be
hazardous to its policyholders, creditors, or the general public,
the commissioner shall file in the office the documents delivered
to him and shall issue to the company a certificate of authority to
transact the kind or kinds of business in this state specified in
the certificate. The certificate shall continue in full force and
effect on the condition that the company continue to comply with the
laws of this state.
(c) Domestic and foreign insurance carriers not meeting the
requirements of this article must comply with the requirements of
Chapters 2 and 8 of this code in order for those carriers to be
permitted to write the insurance coverages authorized by Article
25.02 of this code.
Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug.
29, 1983.
Art. 25.05. Other Laws to Govern
Chapter 2, including Article 2.20, Chapter 8, and Article 4.10 of
this code, and all other provisions of the Insurance Code, if not in
conflict with this chapter, shall apply to and govern any insurance
carrier operating under this chapter. In addition, Article 21.49-8
of this code applies to each insurance carrier operating under this
chapter.
Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug.
29, 1983. Amended by Acts 1995, 74th Leg., ch. 614, Sec. 17, eff.
Sept. 1, 1995.
Art. 25.06. Agents' Licenses
Subchapter A, Chapter 21, of this code applies to the licensing and
regulation of an agent authorized to solicit job protection
insurance for an insurance carrier under this chapter.
Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug.
29, 1983. Amended by Acts 2001, 77th Leg., ch. 703, Sec. 7.13, eff.
Sept. 1, 2001.
Art. 25.07. Retaliatory Provisions; Applicability and Exceptions
Article 21.46 of this code, with the exception of the minimum
capital and surplus requirements specified in that article, applies
to any carrier operating under this chapter.
Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug.
29, 1983.
Art. 25.08. Guaranty Fund; Exception
Coverages provided under this chapter are not subject to the
guaranty funds provided in this code unless specifically indicated
in the laws governing those funds.
Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug.
29, 1983.
Art. 25.09. Prohibited Acts
A person may not engage in any of the following acts:
(1) providing any of the coverages indicated in Article 25.02 of
this code without initially having obtained a certificate of
authority to provide those coverages from the board; or
(2) soliciting insurance for a carrier authorized to provide
insurance coverage under this chapter without initially having
obtained an insurance agent's license.
Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug.
29, 1983.
Art. 25.10. Penalties
(a) The board may refuse to issue or renew a certificate of
authority or a license, or may suspend or revoke a certificate of
authority or a license if, after notice and hearing, the board finds
that the applicant or licensee has violated this chapter or any
other provision of this code.
(b) A person commits an offense if the person knowingly or
intentionally violates Article 25.09 of this chapter.
(c) An offense under Section (b) of this article is a Class B
misdemeanor. Venue for the offense is in Travis County.
Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug.
29, 1983.
