reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter E. Asset Recovery › Section 443.202. Recovery From Affiliates

Sec. 443.202.  RECOVERY FROM AFFILIATES.  (a)  The receiver has a right to recover from any affiliate of the insurer any property of the insurer transferred to or for the benefit of the affiliate, or the property's value, if the transfer was made within the two years preceding the initial petition for receivership.
(b)  A transfer is not recoverable under Subsection (a) if the affiliate shows that, when the transfer was made:
(1)  the insurer was solvent;
(2)  the transfer was lawful; and
(3)  neither the insurer nor the affiliate knew or reasonably should have known that the transfer, under then-applicable statutory accounting standards, would:
(A)  place the insurer:
(i)  in violation of applicable capital or surplus requirements;
(ii)  below the applicable minimum risk-based capital level; or
(iii)  in violation of writing ratios under Article 1.32 or analogous requirements under Section 843.406; or
(B)  cause the insurer's filed financial statements not to present fairly the capital and surplus of the insurer.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.202 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.202 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter E. Asset Recovery › Section 443.203. Unauthorized Post-Petition Transfers

Sec. 443.203.  UNAUTHORIZED POST-PETITION TRANSFERS.  (a)  Except as provided by this section, the receiver may avoid any transfer of an interest of the insurer in property or any obligation incurred by the insurer that:
(1)  was made or occurred after the petition for receivership was filed; and
(2)  is not authorized by the receiver and approved by the receivership court or otherwise authorized in accordance with this chapter.
(b)  Except to the extent that a transfer or obligation avoidable under Subsection (a) is otherwise voidable under this chapter, a transferee or obligee of a transfer or obligation avoided under Subsection (a) that takes for value and in good faith, at the option of the receivership court, has a lien or may retain any interest transferred or enforce any obligation incurred, as applicable, to the extent that the transferee or obligee gave value to the insurer in exchange for the transfer or obligation.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.203 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.203 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter E. Asset Recovery › Section 443.205. Fraudulent Transfers and Obligations

Sec. 443.205.  FRAUDULENT TRANSFERS AND OBLIGATIONS.  (a)  The receiver may avoid any transfer of an interest of the insurer in property, any reinsurance transaction, or any obligation incurred by an insurer that was made or incurred on or within two years before the date of the initial filing of a petition commencing delinquency proceedings under this chapter, if the insurer voluntarily or involuntarily:
(1)  made the transfer or incurred the obligation with actual intent to hinder, delay, or defraud any person to which it was or became indebted on or after the date that the transfer was made or the obligation was incurred; or
(2)  received less than a reasonably equivalent value in exchange for the transfer or obligation.
(b)  Except to the extent that a transfer or obligation voidable under this section is voidable under other provisions of this chapter, a transferee or obligee that takes for value and in good faith a voidable transfer or obligation has a lien on or may retain any interest transferred or may enforce any obligation incurred, as the case may be, to the extent that the transferee or obligee gave value to the insurer in exchange for the transfer or obligation.
(c)  For purposes of this section, a transfer is made when the transfer is so perfected that a subsequent bona fide purchaser from the insurer cannot acquire an interest in the property transferred that is superior to the interest in the property of the transferee, but if the transfer is not so perfected before the commencement of the delinquency proceeding, the transfer is deemed to have been made immediately before the date of the initial filing of the petition commencing delinquency proceedings.
(d)  For purposes of this section, "value" means property or satisfaction or securing of a present or antecedent debt of the insurer.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.205 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.205 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter E. Asset Recovery › Section 443.206. Receiver as Lien Creditor

Sec. 443.206.  RECEIVER AS LIEN CREDITOR.  (a)  The receiver may avoid any transfer of or lien upon the property of, or obligation incurred by, an insurer that the insurer or a policyholder, creditor, member, or stockholder of the insurer may have avoided without regard to any knowledge of the receiver, the commissioner, the insurer, or any policyholder, creditor, member, or stockholder of the insurer regardless of whether such a policyholder, creditor, member, or stockholder exists.
(b)  The receiver is deemed a creditor without knowledge for purposes of pursuing claims under the Uniform Fraudulent Transfer Act, the Uniform Fraudulent Conveyance Act, or similar provisions of state or federal law.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.206 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.206 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter E. Asset Recovery › Section 443.207. Liability of Transferee

Sec. 443.207.  LIABILITY OF TRANSFEREE.  (a)  Except as otherwise provided in this section, to the extent that the receiver obtains an order under Section 443.201 or avoids a transfer under Section 443.202, 443.203, 443.204, 443.205, or 443.206, the receiver may recover the property transferred, or the value of the property, from:
(1)  the initial transferee of the transfer or the entity for whose benefit the transfer was made; or
(2)  any immediate or mediate transferee of the initial transferee.
(b)  The receiver may not recover under Subsection (a)(2) from:
(1)  a transferee that takes for value, including satisfaction or securing of a present or antecedent debt, in good faith, and without knowledge of the voidability of the transfer avoided; or
(2)  any immediate or mediate good faith transferee of the transferee.
(c)  Any transfer avoided in accordance with this chapter is preserved for the benefit of the receivership estate, but only with respect to property of the insurer.
(d)  In addition to the remedies specifically provided under Sections 443.201-443.206 and Subsection (a), if the receiver is successful in establishing a claim to the property or any part of the property, the receiver is entitled to recover judgment for:
(1)  rental for the use of the tangible property from the later of the entry of the receivership order or the date of the transfer;
(2)  in the case of funds or intangible property, the greater of:
(A)  the actual interest or income earned by the property; or
(B)  interest at the statutory rate for judgments from the later of the date of the entry of the receivership order or the date of the transfer; and
(3)  except as to recoveries from guaranty associations, all costs, including investigative costs and other expenses necessary to the recovery of the property or funds, and reasonable attorney's fees.
(e)  In any action under this section, the receivership court may allow the receiver to seek recovery of the property involved or the property's value.
(f)  In any action under Sections 443.201-443.206, the receiver has the burden of proving the avoidability of a transfer, and the person against whom recovery or avoidance is sought has the burden of proving the nature and extent of any affirmative defense.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.207 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(u), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.207 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(u), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter E. Asset Recovery › Section 443.208. Claims of Holders of Void or Voidable Rights

Sec. 443.208.  CLAIMS OF HOLDERS OF VOID OR VOIDABLE RIGHTS.  (a)  A claim of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance voidable under this chapter may not be allowed unless the creditor surrenders the preference, lien, conveyance, transfer, assignment, or encumbrance.  If the avoidance is effected by a proceeding in which a final judgment has been entered, the claim may not be allowed unless the money is paid or the property is delivered to the receiver not later than the 30th day after the date of the entering of the final judgment, except that the receivership court may allow further time if there is an appeal or other continuation of the proceeding.
(b)  A claim allowable under Subsection (a) by reason of the avoidance, whether voluntary or involuntary, or a preference, lien, conveyance, transfer, assignment, or encumbrance, may be filed as an excused late filing under Section 443.251(b) if filed not later than the 30th day after the date of the avoidance, or within the further time allowed by the receivership court under Subsection (a).
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.208 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(v), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.208 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(v), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter E. Asset Recovery › Section 443.209. Setoffs

Sec. 443.209.  SETOFFS.  (a)  All mutual debts or mutual credits, whether arising out of one or more contracts between the insurer and another person in connection with any action or proceeding under this chapter, must be set off and only the balance shall be allowed or paid, except as provided by Subsection (b).
(b)  A setoff may not be allowed in favor of any person if:
(1)  the obligation of the insurer to the person:
(A)  would not, at the date of the commencement of the delinquency proceeding, entitle the person to share as a claimant in the assets of the insurer; or
(B)  was purchased by or transferred to the person:
(i)  after the commencement of the delinquency proceeding; or
(ii)  for the purpose of increasing setoff rights;
(2)  the obligation of the insurer is owed to an affiliate of the person, or any other entity or association other than the person;
(3)  the obligation of the person:
(A)  is as a trustee or fiduciary; or
(B)  is to pay:
(i)  an assessment levied against the members of a mutual insurer, reciprocal or interinsurance exchange, or Lloyd's plan; or
(ii)  a balance upon a subscription to the capital stock of a capital stock insurance company; or
(4)  the obligations between the person and the insurer arise from reinsurance transactions in which either the person or the insurer has assumed risks and obligations from the other party and then has ceded back to that party substantially the same risks and obligations.
(c)  The receiver shall provide an interested person with accounting statements identifying all debts that are due and payable.  If a person owes the insurer amounts that are due and payable against which the person asserts a setoff of mutual credits that, in the future, may become due and payable from the insurer, the person shall promptly pay the amounts due and payable to the receiver.  Notwithstanding any other provision of this chapter, the receiver shall promptly and fully refund, to the extent of a person's prior payments under this section, any mutual credits that become due and payable to the person by the insurer.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.209 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.209 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter F. Claims › Section 443.252. Proof of Claim

Sec. 443.252.  PROOF OF CLAIM.  (a)  Proof of claim consists of a statement signed by the claimant or on behalf of the claimant that includes all of the following, as applicable:
(1)  the particulars of the claim, including the consideration given for it;
(2)  the identity and amount of the security on the claim;
(3)  the payments, if any, made on the debt;
(4)  that the sum claimed is justly owing and that there is no setoff, counterclaim, or defense to the claim;
(5)  any right of priority of payment or other specific right asserted by the claimant;
(6)  the name and address of the claimant and the attorney, if any, who represents the claimant; and
(7)  the claimant's social security or federal employer identification number.
(b)  The liquidator may require that:
(1)  a prescribed form be used; and
(2)  other information and documents be included.
(c)  At any time the liquidator may:
(1)  require the claimant to present information or evidence supplementary to that required under Subsection (a); and
(2)  take testimony under oath, require production of affidavits or depositions, or otherwise obtain additional information or evidence.
(d)  Any guaranty association must be permitted to file a single omnibus proof of claim for all claims of the association in connection with payment of claims of the insurer.  The omnibus proof of claim may be periodically updated by the association, and the association may be required to submit a reasonable amount of documentation in support of the claim.  A guaranty association's claim under this subsection may include amounts for anticipated payments after the closing of the receivership including incurred but not reported claims.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.252 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.252 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter F. Claims › Section 443.254. Claims Under Occurrence Policies, Surety Bonds, and Surety Undertakings

Sec. 443.254.  CLAIMS UNDER OCCURRENCE POLICIES, SURETY BONDS, AND SURETY UNDERTAKINGS.  (a)  Subject to the provisions of Section 443.253, any insured has the right to file a claim for the protection afforded under the insured's policy, regardless of whether a claim is known at the time of filing, if the policy is an occurrence policy.
(b)  Subject to the provisions of Section 443.253, an obligee under a surety bond or surety undertaking has the right to file a claim for the protection afforded under the surety bond or surety undertaking issued by the insurer under which the obligee is the beneficiary, regardless of whether a claim is known at the time of filing.
(c)  After a claim is filed under Subsection (a) or (b), at the time that a specific claim is made by or against the insured or by the obligee, the insured or the obligee shall supplement the claim, and the receiver shall treat the claim as a contingent or unliquidated claim under Section 443.255.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(cc), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.254 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(cc), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter F. Claims › Section 443.255. Allowance of Contingent and Unliquidated Claims

Sec. 443.255.  ALLOWANCE OF CONTINGENT AND UNLIQUIDATED CLAIMS.  (a)  A claim of an insured or third party may be allowed under Section 443.253, regardless of the fact that the claim was contingent or unliquidated, if any contingency is removed in accordance with Subsection (b) and the value of the claim is determined.  For purposes of this section, a claim is contingent if:
(1)  the accident, casualty, disaster, loss, event, or occurrence insured, reinsured, or bonded or reinsured against occurred on or before the date fixed under Section 443.151; and
(2)  the act or event triggering the insurer's obligation to pay has not occurred as of the date fixed under Section 443.151.
(b)  Unless the receivership court directs otherwise, a contingent claim may be allowed if the claimant has presented proof reasonably satisfactory to the liquidator of the insurer's obligation to pay or the claim was based on a cause of action against an insured of the insurer and:
(1)  it may be reasonably inferred from proof presented upon the claim that the claimant would be able to obtain a judgment; and
(2)  the person has furnished suitable proof, unless the receivership court for good cause shown otherwise directs, that no further valid claims can be made against the insurer arising out of the cause of action other than those already presented.
(c)  The liquidator may petition the receivership court to set a date before which all claims under this section are final.  In addition to the notice requirements of Section 443.007, the liquidator shall give notice of the filing of the petition to all claimants with claims that remain contingent or unliquidated under this section.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.255 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(dd), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.255 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(dd), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter F. Claims › Section 443.257. Disputed Claims

Sec. 443.257.  DISPUTED CLAIMS.  (a)  When objections to the liquidator's proposed treatment of a claim are filed and the liquidator does not alter the determination of the claim as a result of the objections, the liquidator shall ask the receivership court for a hearing pursuant to Section 443.007.
(b)  The provisions of this section are not applicable to disputes with respect to coverage determinations by a guaranty association as part of the association's statutory obligations.
(c)  The final disposition by the receivership court of a disputed claim is deemed a final judgment for purposes of appeal.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.257 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(ff), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.257 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(ff), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter F. Claims › Section 443.258. Liquidator's Recommendations to Receivership Court

Sec. 443.258.  LIQUIDATOR'S RECOMMENDATIONS TO RECEIVERSHIP COURT.  The liquidator shall present to the receivership court, for approval, reports of claims settled or determined by the liquidator under Section 443.253.  The reports must be presented from time to time as determined by the liquidator and must include information identifying the claim and the amount and priority class of the claim.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(gg), eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(gg), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter F. Claims › Section 443.259. Claims of Codebtors

Sec. 443.259.  CLAIMS OF CODEBTORS.  If a creditor does not timely file a proof of the creditor's claim, an entity that is liable to the creditor together with the insurer, or that has secured the creditor, may file a proof of the claim.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.259 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.259 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter G. Distributions › Section 443.302. Partial and Final Distributions of Assets

Sec. 443.302.  PARTIAL AND FINAL DISTRIBUTIONS OF ASSETS.  (a)  With the approval of the receivership court, the liquidator may declare and pay one or more distributions to claimants whose claims have been allowed.  Distributions paid under this subsection must be paid at substantially the same percentage of the amount of the claim.
(b)  In determining the percentage of distributions to be paid on these claims, the liquidator may consider the estimated value of the insurer's property, including estimated reinsurance recoverables in connection with the insurer's estimated liabilities for unpaid losses and loss expenses and for incurred but not reported losses and loss expenses, and the estimated value of the insurer's liabilities, including estimated liabilities for unpaid losses and loss expenses and for incurred but not reported losses and loss expenses.
(c)  Distribution of property in kind may be made at valuations set by agreement between the liquidator and the creditor and approved by the receivership court.
(d)  Notwithstanding the provisions of Subsection (a) and Subchapter D, the liquidator is authorized to pay benefits under a workers' compensation policy after the entry of the liquidation order if:
(1)  the insurer has accepted liability and no bona fide dispute exists;
(2)  payments under the policy commenced before the entry of the liquidation order; and
(3)  future or past indemnity or medical payments are due under the policy.
(e)  Claim payments made under Subsection (d) may continue until the date that a guaranty association assumes responsibility for claim payments under the policy.
(f)  Any claim payments made under Subsection (d) and any related expenses must be treated as early access payments under Section 443.303 to the guaranty association responsible for the claims.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.302 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(kk), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.302 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(kk), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter H. Discharge › Section 443.351. Condition on Release From Delinquency Proceedings

Sec. 443.351.  CONDITION ON RELEASE FROM DELINQUENCY PROCEEDINGS.  Until all payments of or on account of the insurer's contractual obligations by all guaranty associations, along with all expenses of the obligations and interest on all the payments and expenses, are repaid to the guaranty associations, unless otherwise provided in a plan approved by the guaranty association, an insurer that is subject to any formal delinquency proceedings may not:
(1)  solicit or accept new business or request or accept the restoration of any suspended or revoked license or certificate of authority;
(2)  be returned to the control of its shareholders or private management; or
(3)  have any of its assets returned to the control of its shareholders or private management.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.351 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.351 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter H. Discharge › Section 443.352. Termination of Liquidation Proceedings

Sec. 443.352.  TERMINATION OF LIQUIDATION PROCEEDINGS.  When all property justifying the expense of collection and distribution has been collected and distributed under this chapter, the liquidator shall apply to the receivership court for an order discharging the liquidator and terminating the proceeding.  The receivership court may grant the application and make any other orders, including orders to transfer any remaining funds that are uneconomic to distribute, or pursuant to Section 443.302(c), assign any assets that remain unliquidated, including claims and causes of action, as may be deemed appropriate.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(nn), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.352 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(nn), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter H. Discharge › Section 443.353. Reopening Receivership

Sec. 443.353.  REOPENING RECEIVERSHIP.  After the liquidation proceeding has been terminated and the liquidator discharged, the commissioner or other interested party may at any time petition the court to reopen the delinquency proceeding for good cause, including the discovery of additional property.  If the court is satisfied that there is justification for reopening, it shall so order.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.353 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.353 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter H. Discharge › Section 443.354. Disposition of Records During and After Termination of Receivership

Sec. 443.354.  DISPOSITION OF RECORDS DURING AND AFTER TERMINATION OF RECEIVERSHIP.  (a)  When it appears to the receiver that the records of the insurer in receivership are no longer useful, the receiver may recommend to the receivership court and the receivership court shall direct what records should be destroyed.
(b)  If the receiver determines that any records should be maintained after the closing of the delinquency proceeding, the receiver may reserve property from the receivership estate for the maintenance of the records, and any amounts so retained are administrative expenses of the estate under Section 443.301(a).  Any records retained pursuant to this subsection must be transferred to the custody of the commissioner, and the commissioner may retain or dispose of the records as appropriate, at the commissioner's discretion.  Any records of a delinquent insurer that are transferred to the commissioner may not be considered records of the department for any purposes, and Chapter 552, Government Code, does not apply to those records.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.354 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(oo), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.354 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(oo), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter H. Discharge › Section 443.355. External Audit of the Receiver's Books

Sec. 443.355.  EXTERNAL AUDIT OF THE RECEIVER'S BOOKS.  (a)  The receivership court may, as it deems desirable, order audits to be made of the books of the receiver relating to any receivership established under this chapter.  A report of each audit shall be filed with the commissioner and with the receivership court.
(b)  The books, records, and other documents of the receivership must be made available to the auditor at any time without notice.
(c)  The expense of each audit shall be considered a cost of administration of the receivership.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.355 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.355 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter I. Interstate Relations › Section 443.401. Ancillary Conservation of Foreign Insurers

Sec. 443.401.  ANCILLARY CONSERVATION OF FOREIGN INSURERS.  (a)  The commissioner may initiate an action against a foreign insurer pursuant to Section 443.051 on any of the grounds stated in that section or on the basis that:
(1)  any of the foreign insurer's property has been sequestered, garnished, or seized by official action in its domiciliary state or in any other state;
(2)  the foreign insurer's certificate of authority to do business in this state has been revoked or was never issued and there are residents of this state with unpaid claims or in-force policies; or
(3)  initiation of the action is necessary to enforce a stay under Section 462.309, 463.404, or 2602.259.
(b)  If a domiciliary receiver has been appointed, the commissioner may initiate an action against a foreign insurer under Subsection (a)(1) or (a)(2) only with the consent of the domiciliary receiver.
(c)  An order entered pursuant to this section must appoint the commissioner as conservator.  The conservator's title to assets must be limited to the insurer's property and records located in this state.
(d)  Notwithstanding Section 443.201(c), the conservator shall hold and conserve the assets located in this state until the commissioner in the insurer's domiciliary state is appointed its receiver or until an order terminating conservation is entered under Subsection (g).  Once a domiciliary receiver is appointed, the conservator shall turn over to the domiciliary receiver all property subject to an order under this section.
(e)  The conservator may liquidate property of the insurer as necessary to cover the costs incurred in the initiation or administration of a proceeding under this section.
(f)  The court in which an action under this section is pending may issue a finding of insolvency or an ancillary liquidation order.  The court may enter an ancillary liquidation order only for the limited purposes of:
(1)  liquidating assets in this state to pay costs under Subsection (e); or
(2)  activating relevant laws applicable to guaranty associations to pay valid claims that are not being paid by the insurer.
(g)  The conservator may at any time petition the receivership court for an order terminating an order entered under this section.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.401 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(pp), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.401 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(pp), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 444 - Agency Contracts With Certain Insurers › Section 444.001. Required Contract Provision

Sec. 444.001.  REQUIRED CONTRACT PROVISION.  An agency contract entered into on or after August 27, 1973, by an insurer writing fire and casualty insurance in this state must contain, or shall be construed to contain, the following provision:
Notwithstanding any other provision of this contract, the obligation of the agent to remit written premiums to the insurer shall be changed on the commencement of a delinquency proceeding as defined by Chapter 443, Insurance Code, as amended.  After the commencement of the delinquency proceeding, the obligation of the agent to remit premiums is limited to premiums earned before the cancellation date of insurance policies stated in the order of a court of competent jurisdiction under Chapter 443, Insurance Code, canceling the policies.  The agent does not owe and may not be required to remit to the insurer or to the receiver any premiums that are unearned as of the cancellation date stated in the order.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(rr), eff. September 1, 2007.
Redesignated from Insurance Code, Section 442.801 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(2), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(rr), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 444 - Agency Contracts With Certain Insurers › Section 444.002. Disposition of Premiums

Sec. 444.002.  DISPOSITION OF PREMIUMS.  (a)  On or after the cancellation date of insurance policies as stated in the court's order canceling the policies, the agent shall promptly account to the receiver for:
(1)  all unearned premiums to be returned to the insured or the replacement coverage to be obtained for the insured; and
(2)  the earned premiums to be paid to the receiver.
(b)  The agent shall:
(1)  promptly return to an insured who paid the premiums any unearned premiums in the possession of the agent on the cancellation date of the policy; or
(2)  with the approval of the insured, use the unearned premiums to purchase new coverage for the insured with a different insurer.
(c)  The agent shall promptly remit to the receiver any earned premiums in the possession of the agent.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Redesignated from Insurance Code, Section 442.802 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(2), eff. September 1, 2007.
Redesignated from Insurance Code, Section 442.802 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(2), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 444 - Agency Contracts With Certain Insurers › Section 444.003. Effect of Chapter on Action by Receiver Against Agent

Sec. 444.003.  EFFECT OF CHAPTER ON ACTION BY RECEIVER AGAINST AGENT.  This chapter does not prejudice a cause of action by the receiver against an agent to recover:
(1)  unearned premiums that were not returned to policyholders; or
(2)  earned premiums that were not promptly remitted to the receiver.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(ss), eff. September 1, 2007.
Redesignated from Insurance Code, Section 442.803 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(2), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(ss), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 444 - Agency Contracts With Certain Insurers › Section 444.004. Agent Not Receiver's Agent

Sec. 444.004.  AGENT NOT RECEIVER'S AGENT.  This chapter does not render the agent an agent of the receiver for earned or unearned premiums.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(tt), eff. September 1, 2007.
Redesignated from Insurance Code, Section 442.804 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(2), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(tt), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 461 - General Provisions › Section 461.001. Applicability of Chapter

Sec. 461.001.  APPLICABILITY OF CHAPTER.  (a)  Except as provided by Subsection (b), this chapter applies to an insurance policy, contract, certificate, evidence of coverage, or application delivered or issued for delivery in this state that is not covered by an insurance guaranty fund or other solvency protection arrangement authorized by this code.
(b)  This chapter does not apply to:
(1)  a fidelity, surety, or guaranty bond; or
(2)  marine insurance as defined by Section 1807.001.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 461 - General Provisions › Section 461.002. Disclosure of Guaranty Fund Nonparticipation

Sec. 461.002.  DISCLOSURE OF GUARANTY FUND NONPARTICIPATION.  (a)  Each insurance policy, contract, certificate, evidence of coverage, or application subject to this chapter must include a statement that, if the insurer is unable to fulfill the insurer's contractual obligation under the policy, contract, certificate, or evidence of coverage, the insurer is not covered by an insurance guaranty fund or other solvency protection arrangement.
(b)  The statement must be in 10-point type and affixed to the first page of the insurance policy, contract, certificate, evidence of coverage, or application.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 461 - General Provisions › Section 461.003. Form of Statement; Prohibition

Sec. 461.003.  FORM OF STATEMENT; PROHIBITION.  (a)  The commissioner by rule shall promulgate the statement that an insurer must use to comply with this chapter.
(b)  An insurer may not include in an insurance policy, contract, certificate, evidence of coverage, or application a statement that does not conform to the appropriate statement prescribed by the commissioner.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.001. Short Title

Sec. 462.001.  SHORT TITLE.  This chapter may be cited as the Texas Property and Casualty Insurance Guaranty Act.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.002. Purposes

Sec. 462.002.  PURPOSES.  The purposes of this chapter are to:
(1)  provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment;
(2)  avoid financial loss to claimants or policyholders because of an insurer's impairment;
(3)  assist in the detection and prevention of insurer insolvencies; and
(4)  provide an association to assess the cost of that protection among insurers.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.003. Construction

Sec. 462.003.  CONSTRUCTION.  This chapter shall be liberally construed to implement the purposes of this chapter described by Section 462.002, which shall be used to aid and guide interpretation of this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.004. General Definitions

Sec. 462.004.  GENERAL DEFINITIONS.  In this chapter:
(1)  "Affiliate" means a person who, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with an impaired insurer on December 31 of the year preceding the date the insurer becomes an impaired insurer.
(2)  "Association" means the Texas Property and Casualty Insurance Guaranty Association.
(3)  "Board" means the board of directors of the association.
(4)  "Claimant" means an insured making a first-party claim or a person instituting a liability claim.
(5)  "Impaired insurer" means a member insurer that is subject to a final, nonappealable order of liquidation that includes a finding of insolvency issued by a court of competent jurisdiction in this state or in the insurer's state of domicile.
(6)  "Member insurer" means an insurer, including a stock insurance company, a mutual insurance company, a Lloyd's plan, a reciprocal or interinsurance exchange, and a county mutual insurance company, that:
(A)  writes any kind of insurance to which this chapter applies under Sections 462.007 and 462.008, including reciprocal or interinsurance exchange contracts; and
(B)  holds a certificate of authority to engage in the business of insurance in this state.
(7)  "Person" means an individual, corporation, partnership, association, or voluntary organization.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 343 (S.B. 1063), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle D - Guaranty Associations › Chapter 462 - Texas Property and Casualty Insurance Guaranty Association › Subchapter A. General Provisions › Section 462.005. Description of Control

Sec. 462.005.  DESCRIPTION OF CONTROL.  (a)  For purposes of this chapter, control is the power to direct, or cause the direction of, the management and policies of a person, other than power that results from an official position with the person or a corporate office held by the person.  The power may be possessed  directly or indirectly by any means, including through the ownership of voting securities or by contract, other than a commercial contract for goods or nonmanagement services.
(b)  A person is presumed to control another person if the person directly or indirectly owns, controls, holds with the power to vote, or holds proxies representing 10 percent or more of the voting securities of the other person.  This presumption may be rebutted by a showing that the person does not in fact control the other person.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.