reglab/housing_qa huggingface dataset:
TX Ins Code § 2602.254 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter F. Covered Claims|Section 2602.254. Certain Conservator and Receiver Expenses Covered

Sec. 2602.254.  CERTAIN CONSERVATOR AND RECEIVER EXPENSES COVERED.  Reasonable and necessary administrative expenses incurred by a conservator appointed by the commissioner or a receiver appointed by a court for an unauthorized insurer operating in this state are covered claims if the commissioner has notified the association or the association has otherwise become aware that:(1)  the unauthorized insurer has insufficient liquid assets to pay those expenses; and(2)  insufficient money is available from:(A)  abandoned money under Section 443.304; and(B)  department appropriations for use in paying those expenses.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2I.007, eff. April 1, 2009.|
TX Ins Code § 2602.255 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter F. Covered Claims|Section 2602.255. Claims Not Covered

Sec. 2602.255.  CLAIMS NOT COVERED.  The following are not covered claims:(1)  an amount due a reinsurer, title insurance company, insurance pool, or underwriting association as a subrogation recovery or otherwise;(2)  a supplementary payment obligation incurred before a determination is made under this chapter that a title insurance company or agent is impaired, including:(A)  adjustment fees or expenses;(B)  attorney's fees or expenses;(C)  court costs;(D)  interest;(E)  enhanced damages, sought as a recovery against the insured, the impaired title insurance company or agent, or the association, that arise under Chapter 541 of this code or Subchapter E, Chapter 17, Business & Commerce Code, or a similar law of another state; and(F)  bond premiums;(3)  a shortage of trust funds or in an escrow account resulting from the insolvency of a financial institution;(4)  exemplary, extracontractual, or bad faith damages awarded against an insured or title insurance company by a court judgment;(5)  a claim under Section 2602.252 by a claimant who has a lien against the real property that was the subject of the transaction from which the claim arises, unless the lien is held to be invalid as a matter of law;(6)  a claim under Section 2602.251, 2602.252, or 2602.253 by a claimant who caused or substantially contributed to the claimant's loss by the claimant's action or omission, as determined by the association or the association's agent; and(7)  a claim filed with the association after the claim filing deadline for an impaired title insurance company or agent.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 24, eff. September 1, 2019.|
TX Ins Code § 2602.256 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter F. Covered Claims|Section 2602.256. Amount of Covered Claim; Limit

Sec. 2602.256.  AMOUNT OF COVERED CLAIM; LIMIT.  (a)  A covered claim under Section 2602.251 or 2602.253 may not exceed the lesser of $500,000 for each claimant or $500,000 for each policy.(b)  A covered claim under Section 2602.252 may not exceed the lesser of $500,000 for each claimant or the amount of money actually received by the impaired title insurance company or agent as trust funds or an escrow account for each claimant in a transaction from which the claim arises, except that the cumulative amount of covered claims arising from a single transaction may not exceed $500,000.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 25, eff. September 1, 2019.|
TX Ins Code § 2602.257 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter F. Covered Claims|Section 2602.257. Exhaustion of Other Rights Required

Sec. 2602.257.  EXHAUSTION OF OTHER RIGHTS REQUIRED.  (a)  A person having a covered claim that is also a claim against a title insurance company under law or under an insurance policy other than a policy of an impaired title insurance company must exhaust the person's rights under law or the policy before asserting the covered claim under this chapter.(b)  The amount payable on the covered claim is reduced by the amount of any recovery under law or the policy.(c)  Notwithstanding any other provision, to avoid undue hardship to a claimant the association may authorize payment of a covered claim against an impaired agent without regard to the liability of any title insurance company or coverage under any insurance policy, subject to the approval of the receivership court or commissioner, as applicable.  On payment, the association is in all respects subrogated to the rights and claims of the claimant.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.258 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter F. Covered Claims|Section 2602.258. Certain Money Authorized for Use in Paying Covered Claim; Limit

Sec. 2602.258.  CERTAIN MONEY AUTHORIZED FOR USE IN PAYING COVERED CLAIM;  LIMIT.  (a)  Money from assessments or guaranty fees is liable only for the difference between the amount of covered claims and the amount of assets marshalled by a receiver or conservator for payment to holders of covered claims.(b)  In an ancillary receivership in this state, money from assessments is liable only for the difference between the amount of covered claims and the amount of assets marshalled by receivers in other states for payment of covered claims in this state.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.259 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter F. Covered Claims|Section 2602.259. Stay of Proceedings; Certain Decisions Not Binding

Sec. 2602.259.  STAY OF PROCEEDINGS;  CERTAIN DECISIONS NOT BINDING.  (a)  To permit the receiver or association to properly defend a pending cause of action, a proceeding in which an impaired title insurance company is a party or is obligated to defend a party in a court in this state, other than a proceeding directly related to the receivership or instituted by the receiver, is stayed for:(1)  a six-month period beginning on the later of the date of the designation of impairment or the date an ancillary proceeding is brought in this state;  and(2)  any subsequent period as determined by the court.(b)  If a covered claim arises from a judgment, order, verdict, finding, or other decision based on the default of an impaired title insurance company or its failure to defend an insured, the association on its own behalf or on behalf of the insured may apply to the court or administrator that made the decision to have the decision set aside and may defend the claim on its merits.(c)  In a proceeding considering a covered claim, a judgment against an insured taken after the date the delinquency proceeding or supervision begins or a conservator is appointed is not evidence of liability or of the amount of damages, and a default or consent judgment against an insured or the impaired title insurance company or a settlement, release, or judgment entered into by the insured or the impaired title insurance company does not bind the association and is not evidence of liability or of the amount of damages in connection with a claim brought against the association or another party under this chapter.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 26, eff. September 1, 2019.|
TX Ins Code § 2602.260 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter F. Covered Claims|Section 2602.260. Admissibility of Payment

Sec. 2602.260.  ADMISSIBILITY OF PAYMENT.  In a lawsuit brought by a conservator, supervisor, or receiver of an impaired title insurance company or agent to recover assets of the company or agent, the fact that a claim against the company or agent has been or will be paid under this chapter is not admissible and may not be placed before a jury by evidence, argument, or reference.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 27, eff. September 1, 2019.|
TX Ins Code § 2602.261 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter F. Covered Claims|Section 2602.261. Appeal of Claim Determination

Sec. 2602.261.  APPEAL OF CLAIM DETERMINATION.  A claimant's right of appeal with respect to a claim determination by the association is governed by the association's plan of operation.  A claimant must bring an action, including an action for declaratory relief, challenging denial of a claim not later than one year after the date the claim was denied.|Added by Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 28, eff. September 1, 2019.|
TX Ins Code § 2602.301 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter G. Association Powers and Duties Relating to Covered Claims|Section 2602.301. General Powers and Duties of Association in Connection With Payment of Covered Claims

Sec. 2602.301.  GENERAL POWERS AND DUTIES OF ASSOCIATION IN CONNECTION WITH PAYMENT OF COVERED CLAIMS.  (a)  The association shall:(1)  investigate a claim brought against the association, the commissioner, or a special deputy receiver appointed under Chapter 443 if the claim involves or may involve the association's rights and obligations under this chapter; and(2)  adjust, compromise, settle, and pay a covered claim to the extent of the association's obligation, and deny all other claims.(b)  The association may review a settlement, release, or judgment to which an impaired title insurance company or agent or its insured was a party to determine the extent to which the settlement, release, or judgment is contested.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2I.008, eff. April 1, 2009.|
TX Ins Code § 2602.302 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter G. Association Powers and Duties Relating to Covered Claims|Section 2602.302. Payment of Covered Claims

Sec. 2602.302.  PAYMENT OF COVERED CLAIMS.  (a)  The association shall pay covered claims:(1)  existing before the determination of impairment; or(2)  arising on or before:(A)  the date of cancellation of the impaired title insurance company's policies or the claim deadline for claims against the impaired title insurance company, as applicable; or(B)  the claim deadline for covered claims against an impaired agent, which is the first anniversary of the date of determination of impairment.(b)  A court in this state in which receivership proceedings of an impaired title insurance company are pending shall set, as applicable:(1)  the date of cancellation of the policies, which may not be later than the fifth anniversary of the date of determination of impairment; or(2)  the claim deadline, which may not be later than the first anniversary of the date of determination of impairment.(b-1)  If an impaired title insurance company is in receivership proceedings outside of this state, the claim deadline is the first anniversary of the date of determination of impairment.(c)  Subject to the approval of the commissioner, the association shall establish:(1)  procedures for filing claims with the association;  and(2)  acceptable forms of proof of covered claims.(d)  The association shall pay claims in the order the association considers reasonable, including payment as claims are received from the claimants or in groups or categories of claims.(e)  The association may not pay a claimant an amount exceeding the amount of the claimant's covered claim.(f)  On payment of the last timely filed covered claim, the association is discharged from the association's obligations under this chapter.  This subsection does not discharge the association of obligations related to pending litigation.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.Amended by: Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 29, eff. September 1, 2019.|
TX Ins Code § 2602.303 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter G. Association Powers and Duties Relating to Covered Claims|Section 2602.303. Servicing Facility

Sec. 2602.303.  SERVICING FACILITY.  (a)  The association may handle claims through its employees or through one or more title insurance companies or other persons designated, subject to the approval of the commissioner, as a servicing facility.(b)  A title insurance company may decline designation as a servicing facility.(c)  The association shall reimburse a servicing facility for:(1)  obligations of the association paid by the facility;  and(2)  expenses incurred by the facility in handling claims for the association.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.304 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter G. Association Powers and Duties Relating to Covered Claims|Section 2602.304. Advance as Loan

Sec. 2602.304.  ADVANCE AS LOAN.  Money advanced by the association under this chapter is considered a special fund loan to the impaired title insurance company or agent for payment of covered claims and does not become an asset of the title insurance company or agent.  The loan is repayable to the extent money from the title insurance company or agent is available.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.305 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter G. Association Powers and Duties Relating to Covered Claims|Section 2602.305. Association in Place of Impaired Title Insurance Company or Agent

Sec. 2602.305.  ASSOCIATION IN PLACE OF IMPAIRED TITLE INSURANCE COMPANY OR AGENT.  (a)  To the extent of the association's obligation on a covered claim, the association stands in the place of the impaired title insurance company or agent and has all the rights, duties, and obligations of the company or agent as if the company or agent were not impaired.(b)  In performing its obligations under this chapter, the association is not considered:(1)  to be engaged in the business of insurance;(2)  to have assumed or succeeded to a liability of the impaired title insurance company or agent;  or(3)  to otherwise stand in the place of the impaired title insurance company or agent, including as to whether the association is subject to personal jurisdiction of the courts of another state.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.306 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter G. Association Powers and Duties Relating to Covered Claims|Section 2602.306. Assignment of Claimant's Rights

Sec. 2602.306.  ASSIGNMENT OF CLAIMANT'S RIGHTS.  (a)  Any cause of action or other right of the holder of a covered claim arising from the occurrence on which the claim is based is assigned to the association on the holder's acceptance of:(1)  the association's payment of the claim;  or(2)  a benefit of a contract by the association providing for reinsurance or assumption of liabilities or for substitution.(b)  Rights are assigned to the association under Subsection (a) to the extent of the amount accepted or the value of the benefit provided.(c)  The association may assign the rights acquired under this section to the title insurance company executing the reinsurance, assumption, or substitution agreement.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.307 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter G. Association Powers and Duties Relating to Covered Claims|Section 2602.307. Settlement by Association Binding; Priority of Claim and Expenses

Sec. 2602.307.  SETTLEMENT BY ASSOCIATION BINDING;  PRIORITY OF CLAIM AND EXPENSES.  (a)  The settlement of a covered claim by the association binds the receiver or statutory successor of an impaired title insurance company.(b)  The court shall give the covered claim the same priority against assets of the impaired title insurance company that the claim would have had in the absence of this chapter.(c)  The association's expenses in handling claims have the same priority as the receiver's expenses.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.308 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter G. Association Powers and Duties Relating to Covered Claims|Section 2602.308. Report to Receiver

Sec. 2602.308.  REPORT TO RECEIVER.  The association shall periodically file with the receiver of an impaired title insurance company a statement of covered claims paid by the association and an estimate of claims anticipated against the association.  The statement preserves the rights of the association against the assets of the company.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.351 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter H. Conservator or Receiver Powers and Duties Relating to Covered Claims|Section 2602.351. Determination of Conservator Concerning Reinsurance, Assumption, or Substitution

Sec. 2602.351.  DETERMINATION OF CONSERVATOR CONCERNING REINSURANCE, ASSUMPTION, OR SUBSTITUTION.  A conservator appointed to handle the affairs of an impaired title insurance company or agent shall determine whether covered claims should or can be provided for in whole or in part by reinsurance, assumption, or substitution.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.352 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter H. Conservator or Receiver Powers and Duties Relating to Covered Claims|Section 2602.352. Notice of Determination Concerning Actual Payment

Sec. 2602.352.  NOTICE OF DETERMINATION CONCERNING ACTUAL PAYMENT.  (a)  On determination by the conservator that covered claims should be actually paid, the conservator shall give notice of the determination to holders of covered claims.(b)  The conservator shall mail the notice to each holder of a covered claim at the most recent address shown in the impaired title insurance company's or agent's records, except that if those records do not show the claimant's address the conservator may give notice by publication in a newspaper of general circulation.(c)  The notice must state a date, not earlier than the 91st day after the date of the mailing or publication of the notice, before which the claimant must file a claim with the conservator.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.353 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter H. Conservator or Receiver Powers and Duties Relating to Covered Claims|Section 2602.353. Filing of Covered Claim

Sec. 2602.353.  FILING OF COVERED CLAIM.  The conservator may require in whole or in part that claimants file:(1)  sworn claim forms;  and(2)  additional information or evidence reasonably necessary for the conservator to determine the legality of or amount due under a covered claim.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.354 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter H. Conservator or Receiver Powers and Duties Relating to Covered Claims|Section 2602.354. Claim by Person With Cause of Action Against Insured

Sec. 2602.354.  CLAIM BY PERSON WITH CAUSE OF ACTION AGAINST INSURED.  (a)  On determination by the conservator that covered claims should be actually paid or on order of the court to the receiver to give notice for the filing of claims, a person having a cause of action that constitutes a covered claim against an insured of the impaired title insurance company under a title insurance policy issued or assumed by the company may file the claim with the receiver or conservator, regardless of whether the claim is unliquidated or undetermined.(b)  A claim under this section may be approved as a covered claim if:(1)  it may be reasonably inferred from the proof presented that the claimant would be able to obtain a judgment on the cause of action against the insured;(2)  the claimant provides suitable proof that no valid claim exists against the impaired title insurance company arising from the cause of action other than claims already made;  and(3)  the total liability of the impaired title insurance company to all claimants under the same title insurance policy does not exceed the amount of the company's total liability if the company were not in liquidation, rehabilitation, or conservation.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|
TX Ins Code § 2602.355 (2021)
2021 Texas Statutes|Insurance Code|Title 11 - Title Insurance|Subtitle C - Financial Solvency|Chapter 2602 - Texas Title Insurance Guaranty Association|Subchapter H. Conservator or Receiver Powers and Duties Relating to Covered Claims|Section 2602.355. Report to Association

Sec. 2602.355.  REPORT TO ASSOCIATION.  (a)  A receiver of an impaired title insurance company or agent shall periodically submit a list of claims to the association or a similar organization in another state.(b)  Notice of a claim to the receiver is considered notice to the association.|Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.|