Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 5 - PROPERTY AND CASUALTY INSURANCE › Subchapter T - FAIR PLAN › Division 1 - PLAN OF OPERATION › Section 5.9920 - Immunity from Liability and Indemnification

Current through Reg. 49, No. 28; July 12, 2024
(a) There is no liability on the part of, and
					 no cause of action against insurers, the inspector, the Association, the
					 Governing Committee, their agents or employees, the Association's
					 administrator, the Commissioner or the Commissioner's authorized
					 representatives, with respect to any inspections required to be undertaken by
					 this subchapter; for any acts or omissions in connection with any required
					 inspections; or for any statements made in any report or communication
					 concerning the insurability of the property, in any findings required by the
					 provisions of this subchapters or at any hearings conducted in connection with
					 any required inspections.
(b) All
					 liabilities under the policy to the policyholder, insureds and claimants are
					 those of the Association. A servicing entity contracted by the Association or
					 the Association's administrator to service the policy, even if a licensed
					 insurer, has no liability under the policy to the policyholder, insureds or
					 claimants. The Association's administrator has no liability under the policy to
					 the policyholder, insureds or claimants.
(c) Each member of any Association committee,
					 each Association officer, employee, member insurer, and member of the Governing
					 Committee shall be indemnified by the Association against liability incurred in
					 connection with the affairs of the Association. The Association shall indemnify
					 each former, present, and future insurer, committee member, officer, and
					 employee of the Association against, and each such insurer, committee member,
					 officer, and employee shall be entitled without further act on his/her part of
					 indemnity from the Association for, all costs and expenses (including the
					 amount of judgments and the amount of reasonable settlements made with a view
					 to the curtailment of costs of litigation, other than amounts paid to the
					 Association itself) reasonably incurred by him/her in connection with or
					 arising out of any action, suit, or proceeding in which he/she may be involved
					 by reason of his/her being or having been an insurer, committee member,
					 officer, or employee of the Association or of any other Association or company
					 which he/she serves as a director, member, officer, or employee at the request
					 of the Association, whether or not he/she continues to be such director,
					 member, officer, or employee at the time of incurring such costs or
					 expenses.
(d) However, such
					 indemnity shall not include any costs or expenses incurred by any such insurer,
					 committee member, officer, or employee in respect of matters as to which he/she
					 shall be finally adjudged in any such action, suit, or proceeding to be liable
					 for willful misconduct in the performance of his/her duty as such insurer,
					 committee member, officer, or employee, or in respect of any matter in which
					 any settlement is effected in any amount in excess of the amount of expenses
					 which might reasonably have been incurred by such insurer, committee member,
					 officer, or employee had such litigation been conducted to a final conclusion;
					 provided, further, that in no event shall anything herein contained be so
					 construed as to protect, or to authorize the Association to indemnify such
					 insurer, committee member, officer, or employee against any liability to the
					 Association or to its members to which he/she would otherwise be subject by
					 reason of his/her willful misfeasance or malfeasance, bad faith, dishonesty,
					 gross negligence, or reckless disregard of the duties or responsibilities
					 involved in the conduct of his/her office or employment as such insurer,
					 committee member, officer, or employee. The foregoing right of indemnification
					 shall inure to the benefit of the heirs, executors, or administrators of each
					 such insurer, committee member, officer, or employee and shall be in addition
					 to all other rights to which such insurer, committee member, officer, or
					 employee may be entitled as a matter of law.