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Form Instructions 8949 Texas Collin: What You Should Know

A Certificate of Surplus (Form WTP-8) issued by the Texas Department of Insurance is evidence of unforeseeable loss to the Association for damage or loss to the property by the Association. An insurance policy must be in effect in every casualty area (a state, county, city, school district, city government district, ward or special district). An Insurance Agreement is signed between the Association and Insurance Agent and is recorded as an Affidavit of Insurance by the Insurance agent. An Insurance Administration Agreement is signed by the Insurance Agent and Insurance Agent's Employer. It is recorded as an Affidavit of Insurance by the Insurance agent's Employer. An Insurance Policy is not required if the Insurance Agreement, Insurance Administration or Insurance Agreement with Employer and Insurance Agent is for an auto policy that is considered a “common” policy, for insurance coverage on personal property, or for insurance in the case of injuries to or accidents involving a vehicle that is owned or controlled by the Association. If the association holds its meetings in a hotel or motel, it is a common policy of the Association that the cost of renting the room is paid by the Association. The cost of renting the room to the nonmember is not paid by the Association and must be paid by the nonmember after becoming a member. However, the association must provide the nonmember with a sign saying it will not be liable upon the nonmember for the costs of the room in the event of any loss. If the members are expected to cover more than the maximum number of days covered by a policy of life insurance, the members are required to carry a minimum amount in excess of what the life insurance coverage amount would otherwise permit them to carry. The members are, however, expected to pay any excess premiums. The cost of the liability coverage must equal or exceed the cost of liability coverage for all other members. But the cost of liability coverage for the nonmembers is not included in determining the liability limits. The policy of liability is in force for the life of the policy, and insurance is provided for every liability claim. Liability coverage must include all the insurance provided for and must include insurance for damages to the property of the member which are a result of any claim arising out of the member's participation in an Association Activity. If insurance for these damages is not carried by the Member, the liability policy has no liability provisions whatsoever.

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