2023 Texas Statutes › Insurance Code › Title 4 - Regulation of Solvency › Subtitle C - Delinquent Insurers › Chapter 443 - Insurer Receivership Act › Subchapter D. Liquidation › Section 443.155. Notice to Creditors and Others

Sec. 443.155.  NOTICE TO CREDITORS AND OTHERS.  (a)  Unless the receivership court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible:
(1)  by first class mail or electronic communication as permitted by the receivership court to:
(A)  any guaranty association that is or may become obligated as a result of the liquidation and any national association of guaranty associations;
(B)  all the insurer's agents, brokers, or producers of record with current appointments or current licenses to represent the insurer and all other agents, brokers, or producers as the liquidator deems appropriate at their last known address; and
(C)  all persons or entities known or reasonably expected to have claims against the insurer, at their last known address as indicated by the records of the insurer, and all state and federal agencies with an interest in the proceeding; and
(2)  by publication in a newspaper of general circulation in the county in which the insurer has its principal place of business and in any other locations as the liquidator deems appropriate.
(b)  The notice of the entry of an order of liquidation must contain or provide directions for obtaining the following information:
(1)  a statement that the insurer has been placed in liquidation;
(2)  a statement that certain acts are stayed under Section 443.008 and describe any additional injunctive relief ordered by the receivership court;
(3)  a statement whether, and to what extent, the insurer's policies continue in effect;
(4)  to the extent applicable, a statement that coverage by state guaranty associations may be available for all or part of policy benefits in accordance with applicable state guaranty laws;
(5)  a statement of the deadline for filing claims, if established, and the requirements for filing a proof of claim pursuant to Section 443.251 on or before that date;
(6)  a statement of the date, time, and location of any initial status hearing scheduled at the time the notice is sent;
(7)  a description of the process for obtaining notice of matters before the receivership court; and
(8)  any other information the liquidator or the receivership court deems appropriate.
(c)  If notice is given in accordance with this section, the distribution of property of the insurer under this chapter is conclusive with respect to all claimants, whether or not they received notice.
(d)  Notwithstanding the other provisions of this section, the liquidator has no duty to locate any persons or entities if no address is found in the records of the insurer or if mailings are returned to the liquidator because of inability to deliver at the address shown in the insurer's books and records.  In these circumstances the notice by publication as required by this chapter or actual notice received is sufficient notice.  Written certification by the liquidator or other knowledgeable person acting for the liquidator that the notices were deposited in the United States mail, postage prepaid, or that the notices have been electronically transmitted is prima facie evidence of mailing and receipt.  All claimants shall keep the liquidator informed of any changes of address.
(e)  Notwithstanding Subsection (a)(1)(C), upon application of the liquidator, the receivership court may:
(1)  find that notice by publication as required in this section is sufficient notice to those persons holding an occurrence policy that expired more than four years prior to the entry of the order of liquidation and under which there are no pending claims; or
(2)  order other notice to persons described by Subdivision (1) as it deems appropriate.
(f)  The liquidator shall notify the Texas Workers' Compensation Commission upon the entry of the liquidation order if the insurer has issued workers' compensation coverage in effect in this state.  Upon request of the liquidator, the Texas Workers' Compensation Commission shall submit a list of active cases pending before the commission that relate to workers' compensation coverage issued 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.155 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(s), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.155 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(s), eff. September 1, 2007.