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Texas Laws | Insurance Code
INSURANCE CODE
TITLE 4. REGULATION OF SOLVENCY

Amended by: (7489)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(ss), eff. September 1, 2007. (7490)

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. (7491)

Amended by: (7492)

Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(ss), eff. September 1, 2007. (7493)

Sec. 444.004. AGENT NOT RECEIVER'S AGENT. (7494)(Text)

This chapter does not render the agent an agent of the receiver for earned or unearned premiums. (7495)

Amended by: (7496)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(tt), eff. September 1, 2007. (7497)

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. (7498)

Amended by: (7499)

Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(tt), eff. September 1, 2007. (7500)

SUBTITLE D. GUARANTY ASSOCIATIONS (7501)(Text)

CHAPTER 461. GENERAL PROVISIONS (7502)(Text)

Sec. 461.001. APPLICABILITY OF CHAPTER. (7503)(Text)

(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. (7504)

(b) This chapter does not apply to: (7505)

(1) a fidelity, surety, or guaranty bond; or (7506)

(2) marine insurance as defined by Section 1807.001. (7507)

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007. (7508)

Sec. 461.002. DISCLOSURE OF GUARANTY FUND NONPARTICIPATION. (7509)(Text)

(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. (7510)

(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. (7511)

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007. (7512)

Sec. 461.003. FORM OF STATEMENT; PROHIBITION. (7513)(Text)

(a) The commissioner by rule shall promulgate the statement that an insurer must use to comply with this chapter. (7514)

(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. (7515)

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007. (7516)

CHAPTER 462. TEXAS PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION (7517)(Text)

Sec. 462.001. SHORT TITLE. (7518)(Text)

This chapter may be cited as the Texas Property and Casualty Insurance Guaranty Act. (7519)

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007. (7520)

Sec. 462.002. PURPOSES. (7521)(Text)

The purposes of this chapter are to: (7522)

(1) provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment; (7523)

(2) avoid financial loss to claimants or policyholders because of an insurer's impairment; (7524)

(3) assist in the detection and prevention of insurer insolvencies; and (7525)

(4) provide an association to assess the cost of that protection among insurers. (7526)

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007. (7527)

Sec. 462.003. CONSTRUCTION. (7528)(Text)

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. (7529)

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007. (7530)

Sec. 462.004. GENERAL DEFINITIONS. (7531)(Text)

In this chapter: (7532)

(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. (7533)

(2) "Association" means the Texas Property and Casualty Insurance Guaranty Association. (7534)

(3) "Board" means the board of directors of the association. (7535)

(4) "Claimant" means an insured making a first-party claim or a person instituting a liability claim. (7536)

(5) "Impaired insurer" means a member insurer that is: (7537)

(A) placed in: (7538)

(i) temporary or permanent receivership or liquidation under a court order, including a court order of another state, based on a finding of insolvency; or (7539)

(ii) conservatorship after the commissioner determines that the insurer is insolvent; and (7540)

(B) designated by the commissioner as an impaired insurer. (7541)

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