reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter F. Reserves › Section 2551.253. Amounts Added to Reserve for Calendar Years After 1997; Reductions

Sec. 2551.253.  AMOUNTS ADDED TO RESERVE FOR CALENDAR YEARS AFTER 1997;  REDUCTIONS.  (a)  Out of total charges for title insurance policies written or assumed on or after January 1, 1998, and before January 1, 2005, a domestic title insurer shall add to and set aside in the statutory premium reserve an amount equal to the total of the following, as described in the insurer's annual statement:
(1)  25 cents per $1,000 of net retained liability if the insurer had $250 million or more in direct written premiums written for the most recent calendar year; or
(2)  30 cents per $1,000 of net retained liability if the insurer had less than $250 million in direct written premiums written for the most recent calendar year.
(b)  Out of total charges for title insurance policies written or assumed on or after January 1, 2005, a domestic title insurer shall add to and set aside in the statutory premium reserve an amount equal to the total of 18.5 cents per $1,000 of net retained liability for the most recent calendar year, as described in the insurer's annual statement.
(c)  A domestic title insurer shall reduce additions to the statutory premium reserve set aside for title insurance policies written or assumed after the year 1997 over a 20-year period beginning in the year after the year in which the policies are written or assumed in the manner and under the same percentages applied under Sections 2551.252(c) and (d).
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 56 (H.B. 885), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter F. Reserves › Section 2551.254. Transitional Release; Transitional Charge

Sec. 2551.254.  TRANSITIONAL RELEASE;  TRANSITIONAL CHARGE.  (a)  In addition to the requirements described by Sections 2551.252 and 2551.253, each domestic title insurer shall compute a total statutory premium reserve balance for all policy years combined as of December 31, 1996.
(b)  A domestic title insurer shall compute the balance under Subsection (a) as if Section 2551.252 were in effect during the 20-year period ending December 31, 1996.  That balance, less the total actual statutory premium reserve balance carried by the insurer on December 31, 1996, is the insurer's transitional charge if the resulting amount is more than zero or is the insurer's transitional release if the resulting amount is zero or less.
(c)  If a domestic title insurer has a transitional charge under Subsection (b), in addition to any changes to the statutory premium reserve otherwise required by this subchapter, the insurer shall add to its statutory premium reserve, on December 31 of each year for 10 consecutive years beginning on December 31, 1997, an amount equal to one-tenth of the transitional charge.
(d)  If a domestic title insurer has a transitional release under Subsection (b), in addition to any changes to the statutory premium reserve otherwise required by this subchapter, the insurer shall reduce its statutory premium reserve, on December 31 of each year for 10 consecutive years beginning on December 31, 1997, by an amount equal to one-tenth of the transitional release.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter F. Reserves › Section 2551.255. Runoff Balance

Sec. 2551.255.  RUNOFF BALANCE.  (a)  At the end of each calendar year beginning in 1997, each domestic title insurer shall compute a total statutory premium reserve balance for all policy years before January 1, 1997, combined.  The balance shall be computed as of the year-end evaluation date and as if Section 2551.252 were in effect during the 20-year period ending December 31, 1996.  The balance computed under this subsection is the runoff balance.
(b)  A domestic title insurer shall reduce its statutory premium reserve by an amount equal to the difference between:
(1)  the runoff balance computed under Subsection (a);  and
(2)  the runoff balance computed for the preceding calendar year.
(c)  The reduction of the statutory premium reserve under Subsection (b) is in addition to any other changes to the statutory premium reserve required by this subchapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter F. Reserves › Section 2551.256. Actuarial Certification

Sec. 2551.256.  ACTUARIAL CERTIFICATION.  (a)  Each domestic or foreign title insurer shall file annually with the insurer's annual statement required under Section 2551.152 an actuarial certification made by a member in good standing of the American Academy of Actuaries.
(b)  An actuarial certification must:
(1)  conform to the annual statement instructions for a title insurer adopted by the National Association of Insurance Commissioners;  and
(2)  include the actuary's professional opinion of the insurer's reserves as of the date of the annual statement.
(c)  The reserves analyzed under this section must include reserves for known claims, including adverse development on known claims, and reserves for incurred but not reported claims.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter F. Reserves › Section 2551.257. Supplemental Reserve

Sec. 2551.257.  SUPPLEMENTAL RESERVE.  Each domestic or foreign title insurer shall establish a supplemental reserve in an amount equal to the amount by which the actuarially certified reserves exceed the total of the known claim reserve and statutory premium reserve as set forth in the insurer's annual statement required under Section 2551.152.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter F. Reserves › Section 2551.258. Reevaluation of Certain Reserve Requirements

Sec. 2551.258.  REEVALUATION OF CERTAIN RESERVE REQUIREMENTS.  (a)  The commissioner may:
(1)  reevaluate the adequacy of the statutory premium reserves required under Section 2551.253; and
(2)  based on an actuarial review, change by order the amount of the statutory premium reserve required of any domestic title insurer or all domestic title insurers.
(b)  Any change in the amount of a statutory premium reserve under Subsection (a)(2) is considered a statutory premium reserve and is not considered a supplemental reserve.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 56 (H.B. 885), Sec. 2, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter F. Reserves › Section 2551.259. Statutory Premium Reserve and Supplemental Reserve Fund

Sec. 2551.259.  STATUTORY PREMIUM RESERVE AND SUPPLEMENTAL RESERVE FUND.  The statutory premium reserve and supplemental reserve fund shall be:
(1)  held in cash;  or
(2)  invested in first mortgage notes or other securities admissible for investment by title insurers under Section 2551.151.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter F. Reserves › Section 2551.260. Effect of Insolvency or Dissolution

Sec. 2551.260.  EFFECT OF INSOLVENCY OR DISSOLUTION.  On the insolvency or dissolution of a title insurer, the statutory premium reserve and supplemental reserve fund shall be used to protect title insurance policyholders, even if no accrued title insurance claims exist and other unpaid obligations do exist.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter F. Reserves › Section 2551.261. Reserve for Unpaid Losses and Loss Expenses

Sec. 2551.261.  RESERVE FOR UNPAID LOSSES AND LOSS EXPENSES.  (a)  A title insurance company shall establish and maintain, in addition to any other reserves, a reserve against:
(1)  unpaid losses;  and
(2)  loss expense for costs of defense of an insured and other costs expected to be paid to other parties in the defense, settlement, or processing of a claim under the terms of a title insurance policy.
(b)  A title insurance company shall compute the amount of the reserve required by this section by carefully estimating any loss and loss expense likely to be incurred on a proper disposition of each claim presented, under notice from or on behalf of the insured, of a title defect in or lien or adverse claim against a title insured by the company.
(c)  The total expenses of the title insurance company are equal to the estimate under Subsection (b) for payment of loss and costs of defense of the insured and other costs expected to be paid to other parties in the defense, settlement, or processing of the claim under the terms of the title insurance policy.  The title insurance company shall revise the estimate at least annually and may additionally revise the estimate as circumstances warrant.
(d)  The amounts set aside in the reserve in any year shall be deducted in determining the net profits for that year of any title insurance company.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter G. Liability and Reinsurance › Section 2551.301. Maximum Policy Liability

Sec. 2551.301.  MAXIMUM POLICY LIABILITY.  (a)  Except as provided by Subsection (b), a title insurance company may issue a title insurance policy on any real property located in this state involving a potential policy liability of not more than 50 percent of the sum of the company's surplus as regards policyholders and the company's statutory premium reserves as stated in the most recent annual statement of the company.
(b)  A title insurance company may exceed the limit described by Subsection (a) if the excess liability is reinsured in due course in accordance with Section 2551.302, 2551.305, or 2551.3055.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 38 (S.B. 572), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter G. Liability and Reinsurance › Section 2551.302. Requirements for Reinsuring Policies

Sec. 2551.302.  REQUIREMENTS FOR REINSURING POLICIES.  A title insurance company may reinsure any of its policies and contracts issued on real property located in this state or on policies and contracts issued in this state under Chapter 2751, if:
(1)  the reinsuring title insurance company is authorized to engage in business in this state under this title; or
(2)  the title insurance company acquires reinsurance in accordance with Section 2551.305 or 2551.3055.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 6, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 1059 (S.B. 322), Sec. 2, eff. September 1, 2011.
Acts 2015, 84th Leg., R.S., Ch. 38 (S.B. 572), Sec. 2, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter G. Liability and Reinsurance › Section 2551.304. Acceptance of Reinsurance

Sec. 2551.304.  ACCEPTANCE OF REINSURANCE.  A title insurance company may accept a reinsurance risk on real property located in this state or on interests described by Section 2751.002(2) only from an authorized title insurance company.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153), Sec. 7, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter G. Liability and Reinsurance › Section 2551.305. Reinsurance From Non-Admitted Title Insurer

Sec. 2551.305.  REINSURANCE FROM NON-ADMITTED TITLE INSURER.  Notwithstanding any other provision of this subchapter, a title insurance company may acquire reinsurance on an individual policy or facultative basis from a title insurance company not authorized to engage in the business of title insurance in this state if the title insurance company from which the reinsurance is acquired:
(1)  has a combined capital and surplus of at least $20 million as stated in the company's most recent annual statement preceding the acceptance of reinsurance; and
(2)  is domiciled in another state and is authorized to engage in the business of title insurance in one or more states.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1059 (S.B. 322), Sec. 3, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1056 (H.B. 3106), Sec. 2, eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 38 (S.B. 572), Sec. 3, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter G. Liability and Reinsurance › Section 2551.3055. Reinsurance From Insurer Other Than Title Insurer

Sec. 2551.3055.  REINSURANCE FROM INSURER OTHER THAN TITLE INSURER.  Notwithstanding any other provision of this subchapter, a title insurance company may obtain reinsurance by a reinsurance treaty or other reinsurance agreement from an assuming insurer with a financial strength rating of B+ or better from the A. M. Best Company, which reinsurance meets the requirements of Subchapter C, Chapter 493, if the title insurance company has provided the department with notice that:
(1)  contains representations that the title insurance company was unable after diligent effort to procure sufficient reinsurance from another title insurance company; and
(2)  summarizes the terms of the reinsurance treaty or other reinsurance agreement that the title insurance company will obtain.
Added by Acts 2015, 84th Leg., R.S., Ch. 38 (S.B. 572), Sec. 3, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter H. Enforcement and Intervention › Section 2551.351. Forfeiture of Right to Engage in Business

Sec. 2551.351.  FORFEITURE OF RIGHT TO ENGAGE IN BUSINESS.  (a)  A foreign or domestic corporation forfeits any right to engage in business in this state if the corporation:
(1)  issues any form of title insurance policy, or any other adopted or approved form, on real property in this state other than a form prescribed by the department;
(2)  charges any premium rate on an owner, mortgagee, or other title insurance policy, or on any other adopted or approved form, on real property in this state other than a premium rate prescribed by the commissioner;  or
(3)  otherwise engages in the business of title insurance in relation to real property in this state on a form or for a premium rate not prescribed by the department or commissioner.
(b)  This section does not apply to a premium rate charged in connection with a reinsurance transaction between two or more title insurance companies, provided that the reinsurance contract complies with Subchapter G.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter H. Enforcement and Intervention › Section 2551.352. Revocation of Permit and Forfeiture of Charter

Sec. 2551.352.  REVOCATION OF PERMIT AND FORFEITURE OF CHARTER.  (a)  A domestic corporation engaged in the business of title insurance that violates this title is subject to:
(1)  revocation by the commissioner of the corporation's permit;  and
(2)  forfeiture of the corporation's charter.
(b)  A foreign corporation engaged in the business of title insurance that violates this title is subject to revocation by the commissioner of the corporation's permit.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter H. Enforcement and Intervention › Section 2551.353. Procedure for Revocation of Certificate

Sec. 2551.353.  PROCEDURE FOR REVOCATION OF CERTIFICATE.  (a)  If the commissioner determines that a domestic or foreign corporation that holds a certificate of authority to engage in business in this state has violated this title, the commissioner shall notify the company that the commissioner intends to revoke the company's certificate of authority on the expiration of the 30-day period following the date actual notice is delivered or mailed under this section.
(b)  Notice under this section must:
(1)  be in writing;  and
(2)  be delivered to an executive officer of the company by personal service or by registered mail.
(c)  If a company receiving notice under this section does not fully comply before the expiration of the period described by Subsection (a), the commissioner shall revoke the company's certificate of authority.
(d)  A company whose certificate of authority is revoked under this section is ineligible for another certificate of authority until the later of:
(1)  the date on which the company fully and in good faith complies;  or
(2)  the first anniversary of the date of the revocation.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2551 - Title Insurers › Subchapter H. Enforcement and Intervention › Section 2551.354. Appeal of Commissioner Action

Sec. 2551.354.  APPEAL OF COMMISSIONER ACTION.  (a)  A company qualified or seeking to qualify under this title and aggrieved by an action of the commissioner, including any action against the company, may file an appeal of the commissioner's action in a district court in Travis County.
(b)  The appeal must be filed not later than the 30th day after the date the commissioner issues the order or ruling, except that if the order or ruling is directed against the company, whether or not directed against any other party, the company has 30 days after the date of receipt of official notice of the commissioner's action to review the action.
(c)  An appeal under this section is subject to the same standard of review as an appeal under this code in accordance with Section 36.203.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2553 - Foreign or Alien Corporations › Section 2553.001. Authority to Engage in Business of Title Insurance

Sec. 2553.001.  AUTHORITY TO ENGAGE IN BUSINESS OF TITLE INSURANCE.  (a)  A corporation organized under the laws of another state may engage in the business of title insurance in this state on exactly the same basis and is subject to the same rules, prices, and supervision as provided for a corporation that is organized under the laws of this state and engaged in the business of title insurance under this title.
(b)  To engage in the business of title insurance in this state, a foreign corporation must file with the department:
(1)  an application for a permit or certificate of authority;  and
(2)  a financial statement demonstrating the condition of the corporation.
(c)  The department shall prescribe the form of the application and financial statement.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2553 - Foreign or Alien Corporations › Section 2553.002. Capital and Surplus Requirements

Sec. 2553.002.  CAPITAL AND SURPLUS REQUIREMENTS.  (a)  A foreign corporation may not engage in the business of title insurance in this state unless the corporation has unimpaired capital in an amount of at least $1 million and a surplus in an amount of at least $1 million.
(b)  The foreign corporation must demonstrate the required capital and surplus from its financial statement and any other examination the department may want to conduct.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle B - Organization of Title Insurance Companies › Chapter 2553 - Foreign or Alien Corporations › Section 2553.003. Taxes and Fees

Sec. 2553.003.  TAXES AND FEES.  (a)  A corporation organized and incorporated under the laws of another state, territory, or country for the purpose of engaging in the business of title insurance shall pay the same filing fees and occupation tax as a foreign casualty company is required to pay to obtain a permit to engage in the business of insurance in this state.
(b)  A foreign title insurance company described by Subsection (a) is not required to pay a franchise tax.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2601 - Supervision, Liquidation, Rehabilitation, Reorganization, or Conservation of Title Insurance Companies and Agents › Section 2601.001. Supervision, Liquidation, Rehabilitation, Reorganization, or Conservation of Title Insurance Companies and Agents

Sec. 2601.001.  SUPERVISION, LIQUIDATION, REHABILITATION, REORGANIZATION, OR CONSERVATION OF TITLE INSURANCE COMPANIES AND AGENTS.  Each title insurance agent and title insurance company is subject to Chapters 441 and 443.
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.003, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.001. Short Title

Sec. 2602.001.  SHORT TITLE.  This chapter may be cited as the Texas Title Insurance Guaranty Act.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.002. Purposes and Findings

Sec. 2602.002.  PURPOSES AND FINDINGS.  (a)  This chapter is for:
(1)  the purposes and findings stated in Sections 441.001, 441.003, 441.005, and 441.006;
(2)  the protection of holders of covered claims; and
(3)  the protection of consumers served by impaired agents.
(b)  This chapter and the powers granted and functions authorized by this chapter shall be exercised to accomplish the purposes of this chapter.
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.004, eff. April 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 2, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.004. Description of Control

Sec. 2602.004.  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 or 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 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.005. Applicability; Conflict With Other Laws

Sec. 2602.005.  APPLICABILITY;  CONFLICT WITH OTHER LAWS.  (a)  This chapter applies to:
(1)  a title insurance company engaging in business under this title;
(2)  all title insurance, direct or reinsurance, written by a title insurance company engaging in business under this title;  and
(3)  trust funds or escrow accounts of:
(A)  title insurance companies engaging in business under this title;  or
(B)  agents authorized to engage in business in this state and engaging in business under and governed by this title.
(b)  If this chapter conflicts with another law relating to the subject matter of this chapter or its application, other than Chapter 441 or 443, this chapter controls.  If this chapter conflicts with Chapter 441 or 443, that chapter controls.
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.005, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.006. Construction

Sec. 2602.006.  CONSTRUCTION.  (a)  This chapter shall be liberally construed to implement the purposes of this chapter described by Section 2602.002, which shall be used to aid and guide interpretation of this chapter.
(b)  This chapter does not:
(1)  expand or diminish a right or obligation between or among policyholders, title insurance companies, or agents;  or
(2)  require a person to assign, waive, or relinquish a claim, right, or cause of action arising under Chapter 541 of this code or Subchapter E, Chapter 17, Business & Commerce Code.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.007. Prohibited Use of Protection Provided by Chapter

Sec. 2602.007.  PROHIBITED USE OF PROTECTION PROVIDED BY CHAPTER.  (a)  A title insurance company or agent may not advertise or refer to this chapter as an inducement to the purchase of title insurance.
(b)  The use by a person of the protection provided by this chapter in the sale of insurance is unfair competition and an unfair practice under Chapter 541.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.008. Immunity

Sec. 2602.008.  IMMUNITY.  (a)  Liability does not exist and a cause of action does not arise against any of the following persons for a good faith action or omission of the person in exercising the person's powers and performing the person's duties under this chapter:
(1)  the commissioner or the commissioner's representative;
(2)  the association or the association's agent, representative, or employee;
(3)  a title insurance company or the company's agent or employee;
(4)  a board member; and
(5)  a special deputy receiver or the special deputy receiver's agent or employee.
(b)  The attorney general shall defend any action to which Subsection (a) applies that is brought against a person listed in that subsection, including an action instituted after the defendant's service with the association, commissioner, or department has terminated.  This subsection does not require the attorney general to defend a person or entity with respect to an issue other than the applicability or effect of the immunity created by Subsection (a).  The attorney general is not required to defend a person listed in Subsection (a)(2), (3), (4), or (5) against an action regarding the disposition of a claim filed with the association under this chapter or any issue other than the applicability or effect of the immunity created by Subsection (a).  The association may contract with the attorney general under Chapter 771, Government Code, for legal services not covered by this subsection.
(c)  A title insurance company that reinsures or assumes the policies of an impaired title insurance company is not liable, and a cause of action does not arise against that company:
(1)  for an action or omission by the impaired title insurance company or an officer, director, employee, attorney, or agent of the impaired title insurance company;
(2)  by subrogation;  or
(3)  under any type of indemnity agreement.
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. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.009. Association and Title Insurance Companies as Interested Parties

Sec. 2602.009.  ASSOCIATION AND TITLE INSURANCE COMPANIES AS INTERESTED PARTIES.  The association and each title insurance company assessed under this chapter are interested parties under Sections 3(h) and 12(b), Article 21.28.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.010. Rules

Sec. 2602.010.  RULES.  The commissioner shall adopt reasonable rules as necessary to implement and supplement this chapter and its purposes.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.011. Information Provided by and to Commissioner

Sec. 2602.011.  INFORMATION PROVIDED BY AND TO COMMISSIONER.  (a)  The commissioner shall notify the association of the existence of an impaired title insurance company or impaired agent not later than the third day after the date on which the commissioner gives notice of the designation of impairment to the impaired agent or impaired title insurance company.  The association is entitled to a copy of any complaint seeking an order of receivership with a finding of insolvency against a title insurance company at the time the complaint is filed with a court.
(b)  The commissioner shall notify the board when the commissioner receives a report from the commissioner of insurance or other analogous officer of another state that indicates that a title insurance company has been designated impaired in another state.  The report to the board must contain all significant details of the action taken or the report received.
(c)  The commissioner shall report to the board when the commissioner has reasonable cause to believe from a completed or continuing examination of any title insurance company that the company may be an impaired title insurance company.  The board may use this information in performing its duties under this chapter.  The board shall keep the report and the information contained in the report confidential until it is made public by the commissioner or other lawful authority.
(d)  On the board's request, the commissioner shall provide the association with a statement of the net direct written premiums of each title insurance company.
(e)  The commissioner may require that the association notify the insureds of the impaired title insurance company and any other interested party of the designation of impairment and of the person's rights under this chapter.  Notification by publication in a newspaper of general circulation is sufficient notice under this section.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 4, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.012. Appeals

Sec. 2602.012.  APPEALS.  (a)  A title insurance company may appeal to the commissioner an action or ruling of the association relating to an assessment.
(b)  An action or ruling of the commissioner under this chapter may be appealed as provided by Subchapter D, Chapter 36.
(c)  A title insurance company appealing an assessment shall pay the assessment.  The association may use the money to meet its obligations while the appeal is pending.  If the appeal on the assessment is upheld, the association shall return to the company the amount paid in error or excess.
(d)  Venue in a suit relating to an action or ruling under this chapter is in Travis County.  Each party to the action may appeal, and the appeal is at once returnable to the appellate court and has precedence over all cases of a different character pending before the court.  The commissioner or association is not required to give an appeal bond in an appeal of a cause of action arising under this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter A. General Provisions › Section 2602.013. Venue

Sec. 2602.013.  VENUE.  An action against the association or an action against the association's board member, agent, representative, or employee that arises from the exercise of the person's powers or performance of the person's duties under this chapter must be brought in a district court in Travis County.
Added by Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter B. Governance of Texas Title Insurance Guaranty Association › Section 2602.051. Association as Legal Entity; Supervision; Membership

Sec. 2602.051.  ASSOCIATION AS LEGAL ENTITY;  SUPERVISION;  MEMBERSHIP.  (a)  The Texas Title Insurance Guaranty Association is a nonprofit legal entity.
(b)  The association is subject to the applicable insurance laws of this state and the immediate supervision of the commissioner.
(c)  A title insurance company may not engage in the business of title insurance in this state unless the company is a member of the association.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter B. Governance of Texas Title Insurance Guaranty Association › Section 2602.052. Board of Directors

Sec. 2602.052.  BOARD OF DIRECTORS.  (a)  The association's powers are exercised through a board of directors consisting of nine individuals appointed by the commissioner.
(b)  Three board members must be officers or employees of title insurance companies.  Two board members must be officers or employees of agents.  Four board members must be public representatives.
(c)  Board members other than public representatives shall be chosen to give fair representation to all title insurance companies and agents, considering the following categories:
(1)  premium income;
(2)  geographical location;  and
(3)  segments of the industry represented in this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter B. Governance of Texas Title Insurance Guaranty Association › Section 2602.053. Eligibility to Serve as Public Representative

Sec. 2602.053.  ELIGIBILITY TO SERVE AS PUBLIC REPRESENTATIVE.  (a)  In this section, "immediate family" includes parents, a spouse, children, brothers, and sisters residing in the same household.
(b)  To be eligible to serve as a public representative on the board, an individual must have resided in this state during the five years preceding appointment and may not be:
(1)  licensed by or subject to the regulation of the department;
(2)  financially involved in an organization subject to the regulation of the department other than by ownership of an insurance policy or contract;
(3)  a member of the immediate family of an individual who is financially involved in an organization subject to the regulation of the department;
(4)  engaged in or employed by an entity having a contract with an organization subject to the regulation of the department;
(5)  employed by, on the board of directors of, or a holder of an elective office by or under the authority of a unit of federal, state, or local government or an organization that receives a significant part of its funding from a unit of federal, state, or local government;
(6)  employed by or associated with an organization formed to represent license holders of the department or organizations or individuals subject to the regulation of the department;  or
(7)  required to register as a lobbyist under Chapter 305, Government Code, because of activities on behalf of an organization representing the regulated industry.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter B. Governance of Texas Title Insurance Guaranty Association › Section 2602.054. Term; Vacancy

Sec. 2602.054.  TERM;  VACANCY.  (a)  Board members serve staggered six-year terms, with the terms of three members expiring each odd-numbered year.  A member may serve more than one term.
(b)  A member shall serve until a successor is appointed.
(c)  If a member other than a public representative ceases to be an officer or employee of a title insurance company or agent, the member's office becomes vacant.
(d)  The commissioner shall appoint an individual to fill a vacancy on the board for the unexpired term.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter B. Governance of Texas Title Insurance Guaranty Association › Section 2602.055. Compensation of Board Members

Sec. 2602.055.  COMPENSATION OF BOARD MEMBERS.  A board member may not receive compensation for the member's services but is entitled to reimbursement for actual expenses incurred in performing the member's duties.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter B. Governance of Texas Title Insurance Guaranty Association › Section 2602.057. Rights of Title Insurance Company With Representative on Board

Sec. 2602.057.  RIGHTS OF TITLE INSURANCE COMPANY WITH REPRESENTATIVE ON BOARD.  (a)  A title insurance company is not prohibited, because the company has an officer, director, or employee serving as a board member, from negotiating for or entering into a contract of reinsurance or assumption of liability or a contract of substitution to provide for liabilities for covered claims with the association, the commissioner, or the receiver or conservator of an impaired title insurance company or agent.
(b)  A conflict of interest does not arise from entering into a contract described by this section.
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. 3, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 2602.101. General Powers and Duties

Sec. 2602.101.  GENERAL POWERS AND DUTIES.  (a)  In addition to the other powers and duties provided by this chapter, the association may:
(1)  borrow money as necessary to implement this chapter according to the plan of operation;
(2)  lend money to the receiver, supervisor, or conservator of an impaired title insurance company or its agent;
(3)  sue and be sued, including taking any legal action necessary or proper to recover an unpaid assessment;
(4)  enter into contracts as necessary or proper to implement this chapter;
(5)  ensure payment of the policy obligations of an impaired title insurance company;
(6)  negotiate and contract with a rehabilitator, conservator, supervisor, receiver, ancillary receiver, or other third party to exercise the powers and perform the duties of the association;
(7)  guarantee, assume, or reinsure, or cause to be guaranteed, assumed, or reinsured, a policy or contract of an impaired title insurance company;
(8)  take legal action necessary to avoid the payment of improper claims or to settle claims or potential claims against an impaired title insurance company or agent, or the association;
(9)  assume control of and consolidate the escrow accounts transferred to the association by an impaired agent that has been placed in receivership, supervision, or conservatorship, and:
(A)  pay covered claims from the consolidated escrow accounts to facilitate processing and payment of claims;
(B)  maintain a separate accounting for each transferred escrow account; and
(C)  return money not used to pay a covered claim to the owner of the money in accordance with the contract governing the escrow of the money; and
(10)  perform any other acts as necessary or proper to implement this chapter.
(b)  The association has standing to appear before a court in this state with jurisdiction over an impaired title insurance company or agent concerning which the association is or may become obligated 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. 4, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 2602.102. Plan of Operation

Sec. 2602.102.  PLAN OF OPERATION.  (a)  The association shall perform its functions under a plan of operation.  The plan of operation must contain provisions necessary or proper for the execution of the association's powers and duties.  The plan of operation must, in addition to the other requirements of this chapter:
(1)  establish:
(A)  procedures for handling the assets of the association;
(B)  the amount and method of reimbursing board members;
(C)  regular places and times for board meetings;
(D)  procedures for maintaining records of all financial transactions of the association, its agents, and the board; and
(E)  procedures for determining the amount of guaranty fees, for collecting those fees, and for assessments;
(2)  provide for the establishment of a claims filing procedure that includes:
(A)  notice by the association to claimants;
(B)  procedures for filing claims seeking recovery from the association; and
(C)  a procedure for appealing the denial of claims by the association; and
(3)  contain additional provisions necessary or proper for the execution of the association's powers and duties.
(b)  The association shall submit to the commissioner any amendment to the plan of operation necessary or suitable to ensure the fair, reasonable, and equitable administration of the association.  The amendment takes effect on the commissioner's written approval or the 90th day after the date the amendment is submitted unless disapproved by the commissioner.
(c)  If the association does not submit a suitable amendment to the plan of operation, the commissioner after notice and hearing may adopt reasonable rules as necessary or advisable to implement this chapter.  A rule continues in effect until modified by the commissioner or superseded by an amendment submitted by the association and approved by the commissioner.
(d)  Each title insurance company shall comply with the plan of operation.
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. 5, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 11 - Title Insurance › Subtitle C - Financial Solvency › Chapter 2602 - Texas Title Insurance Guaranty Association › Subchapter C. General Powers and Duties of Association › Section 2602.103. Employees and Experts

Sec. 2602.103.  EMPLOYEES AND EXPERTS.  (a)  The association may employ or retain persons to perform the functions necessary or proper under this chapter, including persons necessary to handle the association's financial transactions.
(b)  On the commissioner's approval, the association shall reimburse the department out of the guaranty fee account for the cost, including reasonable and necessary expenses, to employ or retain one or more persons to:
(1)  audit and review agent escrow and trust accounts, financial condition, and compliance with applicable statutes and rules;
(2)  report to the commissioner on the accounts, condition, and compliance; or
(3)  supervise a person employed or retained to perform audit and review under Subdivision (1).
(c)  A person employed or retained under Subsection (b) acts solely under the direction of and as assigned by the commissioner but shall report the person's activity and expenses to the association on the request of the association.
(d)  Repealed by Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 31, eff. September 1, 2019.
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. 6, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 775 (H.B. 1614), Sec. 31, eff. September 1, 2019.