Section 5.9913 - Authority of Agents and Commissions(a) Upon request, an agent may assist any property owners' association or owner of residential property in the completion and submission of an application for insurance on forms prescribed by FAIR Plan.(b) Agents may not hold themselves out as agents of FAIR Plan.(c) A commission must be paid on the basis of a commission schedule set by the Governing Committee and approved by the commissioner. The commission must be based on paid gross written premiums and subject to adjustment based on policy changes and cancellations. The agent must remit the gross premium collected on a FAIR Plan policy to FAIR Plan, and FAIR Plan will pay the commission.(d) FAIR Plan must establish minimum requirements and performance standards for agents who submit applications to FAIR Plan or renew business in FAIR Plan. These requirements and standards must be designed to ensure the efficient transmission of applications, forms, notices, and money from the agent to FAIR Plan and vice versa; and ensure the efficient operation of FAIR Plan, and the efficient and convenient servicing of applicants and policyholders. FAIR Plan may require that agents demonstrate and certify compliance with these requirements and standards. FAIR Plan has the power to bar an agent from submitting new applications to or renewing business in FAIR Plan if the agent refuses to demonstrate and certify compliance with these requirements and standards or the agent violates any of these requirements or standards. Such minimum requirements and performance standards are binding upon any agent as a condition of the agent's request for an inspection, submission of an application, receipt of commissions from FAIR Plan, or other act in connection with FAIR Plan. FAIR Plan may contract with agents who meet FAIR Plan's standards and may limit applications to FAIR Plan to those agents. FAIR Plan is not required to appoint agents.(e) FAIR Plan may limit communications with agents to website communications only.(f) An applicant may apply to FAIR Plan only through an agent.28 Tex. Admin. Code § 5.9913
The provisions of this §5.9913 adopted to be effective May 28, 2003, 28 TexReg 4153; Amended by Texas Register, Volume 49, Number 41, October 11, 2024, TexReg 8387, eff. 10/15/2024