Texas Business Organizations Code - Section 152.804. Insurance Or Financial Responsibility
Legal Research Home >
Texas Laws > Business Organizations Code > Texas Business Organizations Code - Section 152.804. Insurance Or Financial Responsibility
§ 152.804. INSURANCE OR FINANCIAL RESPONSIBILITY. (a) A
limited liability partnership must:
(1) carry at least $100,000 of liability insurance of
a kind that is designed to cover the kind of error, omission,
negligence, incompetence, or malfeasance for which liability is
limited by Section 152.801(b); or
(2) provide $100,000 specifically designated and
segregated for the satisfaction of judgments against the
partnership for the kind of error, omission, negligence,
incompetence, or malfeasance for which liability is limited by
Section 152.801(b) by:
(A) deposit of cash, bank certificates of
deposit, or United States Treasury obligations in trust or bank
escrow;
(B) a bank letter of credit; or
(C) insurance company bond.
(b) If the limited liability partnership is in compliance
with Subsection (a), the requirements of this section may not be
admissible or be made known to the jury in determining an issue of
liability for or extent of:
(1) the debt or obligation in question; or
(2) damages in question.
(c) If compliance with Subsection (a) is disputed:
(1) compliance must be determined separately from the
trial or proceeding to determine:
(A) the partnership debt or obligation in
question;
(B) the amount of the debt or obligation; or
(C) partner liability for the debt or obligation;
and
(2) the burden of proof of compliance is on the person
claiming limitation of liability under Section 152.801(b).
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 152.707 152.708 152.709 152.710 152.801 152.802 152.803 152.804 152.805 152.901 152.902 152.903 152.904 152.905 152.906
Last modified: August 11, 2007
|
