(a) Each group shall contribute an amount, based on the total amount of income benefit payments made in this state for the preceding reported calendar year, to create, over a period of 10 years beginning January 1, 2006, a trust fund of at least $1 million for:
(1) the emergency payment of the compensation liabilities of an insolvent group; and
(2) the administrative expenses of the guaranty fund.
(b) The board may adopt provisions in the plan of operation that provide for the indexing of the amount of the trust fund to a risk analysis.
(c) At least annually, the board shall adopt a year-by-year schedule of assessments to meet the funding goal of the trust fund.
(d) The board may:
(1) defer assessments if the fund equals or exceeds $2 million; and
(2) allow the trust fund to accrete based on its investment earnings.
(e) The contribution required for the first year after a group is issued a certificate of approval under this chapter shall be based on the group’s estimated income benefit payments for the group’s first year of operation.
(f) Each group certified under this chapter shall make contributions under this section to the trust fund, and the board shall provide a mechanism in the plan of operation to ensure that all groups contribute equitably to the trust fund.
(g) The board shall administer the trust fund in accordance with the plan of operation adopted by the board and approved by the commissioner.
Added by Acts 2005, 79th Leg., Ch. 1055 (H.B. 1353), § 1, eff. September 1, 2005.