Texas Insurance Code - Not Codified - Article 21.28-C. Property And Casualty Insurance Guaranty Act
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Art. 21.28-C. PROPERTY AND CASUALTY INSURANCE GUARANTY
ACT.
Article repealed effective April 1, 2007
Short title
Sec. 1. This article shall be known as the Texas Property and
Casualty Insurance Guaranty Act.
Purpose
Sec. 2. The purpose of this Act is to:
(1) provide a mechanism for the payment of covered claims
under certain insurance policies to avoid excessive delay in
payment;
(2) avoid financial loss to claimants or policyholders
because of the impairment of an insurer;
(3) assist in the detection and prevention of insurer
insolvencies; and
(4) provide an association to assess the cost of that
protection among insurers.
Scope
Sec. 3. (a) This Act applies to all kinds of direct insurance,
and except as provided in Section 12 of this Act, is not applicable
to the following:
(1) life, annuity, health, or disability insurance;
(2) mortgage guaranty, financial guaranty, or other forms
of insurance offering protection against investment risks;
(3) fidelity or surety bonds, or any other bonding
obligations;
(4) credit insurance, vendors' single-interest insurance,
collateral protection insurance, or any similar insurance
protecting the interests of a creditor arising out of a
creditor-debtor transaction;
(5) insurance of warranties or service contracts;
(6) title insurance;
(7) ocean marine insurance;
(8) any transaction or combination of transactions between
a person, including an affiliate of such a person, and an insurer,
including an affiliate of such an insurer, that involves the
transfer of investment or credit risk unaccompanied by the transfer
of insurance risk, including transactions, except for workers'
compensation insurance, involving captive insurers, policies in
which deductible or self-insured retention is substantially equal
in amount to the limit of the liability under the policy, and
transactions in which the insured retains a substantial portion of
the risk; or
(9) any insurance provided by or guaranteed by government.
(b) This Act applies to insurance written through the Texas
Mutual Insurance Company only as provided by this subsection. The
application of this article to the Texas Mutual Insurance Company
is on a prospective basis on and after January 1, 2000. That
company is only liable for assessments for a claim with a date of
injury that occurs on or after January 1, 2000. The association,
with respect to an insolvency of the company, is only liable for a
claim with a date of injury that occurs on or after January 1, 2000.
Construction
Sec. 4. This Act shall be liberally construed to effect the
purposes under Section 2 of this Act, which will constitute an aid
and guide to interpretation.
Definitions
Sec. 5. In this Act:
(1) "Account" means any one of the three accounts created
under Section 6 of this Act.
(2) "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 next preceding the date the insurer becomes an impaired
insurer.
(3) "Association" means the Texas Property and Casualty
Insurance Guaranty Association.
(4) "Board" means the board of directors of the association.
(5) "Claimant" means any insured making a first-party claim
or any person instituting a liability claim. A person who is an
affiliate of the impaired insurer may not be a claimant.
(6) "Commissioner" means the commissioner of insurance.
(7) "Control" means the possession, direct or indirect, of
the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting
securities, by contract other than a commercial contract for goods
or nonmanagement services, or otherwise, unless the power is the
result of an official position with or corporate office held by the
person. Control is presumed to exist if any 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
any other person. This presumption may be rebutted by a showing
that control does not exist in fact.
(8) "Covered claim" means an unpaid claim of an insured or
third-party liability claimant that arises out of and is within the
coverage and not in excess of the applicable limits of an insurance
policy to which this Act applies, issued or assumed (whereby an
assumption certificate is issued to the insured) by an insurer
licensed to do business in this state, if that insurer becomes an
impaired insurer and the third-party claimant or liability claimant
or insured is a resident of this state at the time of the insured
event, or the claim is a first-party claim for damage to property
that is permanently located in this state. A corporation or other
entity that is not an individual is considered to be a resident of
the state in which the entity's principal place of business is
located. "Covered claim" shall also include unearned premiums, but
in no event shall a covered claim for unearned premiums exceed
$25,000. Individual covered claims (including any and all
derivative claims by more than one person which arise from the same
occurrence, which shall be considered collectively as a single
claim under this Act) shall be limited to $300,000, except that the
association shall pay the full amount of any covered claim arising
out of a workers' compensation claim made under a workers'
compensation policy. "Covered claim" shall not include any amount
sought as a return of premium under a retrospective rating plan or
any amount that is directly or indirectly due any reinsurer,
insurer, self-insurer, insurance pool, or underwriting
association, as subrogation recoveries, reinsurance recoveries,
contribution, indemnification, or otherwise, and the insured of an
impaired insurer is not liable, and the reinsurer, insurer,
self-insurer, insurance pool, or underwriting association is not
entitled to sue or continue a suit against that insured, for any
subrogation recovery, reinsurance recovery, contribution,
indemnity, or any other claim asserted directly or indirectly by a
reinsurer, insurer, insurance pool, or underwriting association to
the extent of the applicable liability limits of the policy written
and issued to the insured by the insolvent insurer. "Covered claim"
shall not include supplementary payment obligations, including
adjustment fees and expenses, attorney's fees and expenses, court
costs, interest and penalties, and interest and bond premiums
incurred prior to the determination that an insurer is an impaired
insurer under this Act. "Covered claim" shall not include any
prejudgment or postjudgment interest that accrues subsequent to the
determination that an insurer is an impaired insurer under this
Act. "Covered claim" shall not include any claim for recovery of
punitive, exemplary, extracontractual, or bad-faith damages,
whether sought as a recovery against the insured, insurer, guaranty
association, receiver, special deputy receiver, or commissioner,
awarded in a court judgment against an insured or insurer.
Notwithstanding any other provision of this Act, the association's
liability for shareholder derivative actions or other claims for
economic loss incurred by a claimant in the claimant's capacity as a
shareholder under an insurance policy placed in force on or after
January 1, 1992, is limited to $300,000 for each policy, inclusive
of defense costs, regardless of the number of claimants under each
policy. "Covered claim" shall not include, and the association
shall not have any liability to an insured or third-party liability
claimant, for its failure to settle a liability claim within the
limits of a covered claim under this Act. With respect to a covered
claim for unearned premiums, both persons who were residents of
this state at the time the policy was issued and persons who are
residents of this state at the time the company is found to be an
impaired insurer shall be considered to have covered claims under
this Act. If the impaired insurer has insufficient assets to pay
the expenses of administering the receivership or conservatorship
estate, that portion of the expenses of administration incurred in
the processing and payment of claims against the estate shall also
be a covered claim under this Act.
(9) "Impaired insurer" means:
(A) a member insurer that is placed in temporary or
permanent receivership or liquidation under an order of a court of
competent jurisdiction, including the courts of any other state,
based on a finding of insolvency and that has been designated an
impaired insurer by the commissioner; or
(B) a member insurer placed in conservatorship after it has
been determined by the commissioner to be insolvent and that has
been designated an impaired insurer by the commissioner.
(10) "Member insurer" means any insurer who:
(A) writes any kind of insurance to which this Act applies
under Section 3 of this Act, including the exchange of reciprocal or
inter-insurance contracts; and
(B) is licensed to transact insurance in this state,
including any stock, mutual, Lloyds insurer, reciprocal or
inter-insurance exchange, or county mutual insurance company.
(11) "Net direct written premiums", when assessing other
than the workers' compensation line of business, means direct
premiums written in this state on insurance policies to which this
Act applies, less return premiums on those policies and dividends
paid or credited to policyholders on that direct business. The term
does not include premiums on contracts between insurers or
reinsurers. When assessing the workers' compensation line of
business, the term "net direct written premiums" includes the
modified annual premium prior to the application of any deductible
premium credit, less return premiums on those policies and
dividends paid or credited to policyholders on that direct
business. The term does not include premiums on contracts between
insurers or reinsurers.
(12) "Person" means any individual, corporation,
partnership, association, or voluntary organization.
Association
Sec. 6. The Texas Property and Casualty Insurance Guaranty
Association is a nonprofit, unincorporated legal entity composed of
all member insurers, who must be members of the association as a
condition of their authority to transact insurance in this state.
The association shall perform its functions under a plan of
operation approved under Section 9 of this Act and shall exercise
its powers through the board of directors. For purposes of
administration and assessment, the association is divided into the
workers' compensation insurance account, the automobile insurance
account, and the account for all other lines of insurance to which
this Act applies.
Board of directors
Sec. 7. (a) The board of directors of the association is
composed of nine persons who serve terms as established in the plan
of operation. Five members shall be selected by member insurers,
subject to the approval of the commissioner. To be eligible to
serve as an insurance industry board member, a person must be a
full-time employee of a member insurer. The remaining members
shall be representatives of the general public appointed by the
commissioner. Vacancies on the board shall be filled for the
remaining period of the term by a majority vote of the remaining
board members, subject to the approval of the commissioner.
(b) In approving selections to the board, the commissioner
shall consider whether all member insurers are fairly represented.
(c) Members of the board of directors may be reimbursed from
the assets of the association for expenses incurred by them as
members of the board of directors.
(d) A public representative may not be:
(1) an officer, director, or employee of an insurance
company, insurance agency, agent, broker, solicitor, adjuster, or
any other business entity regulated by the Texas Department of
Insurance;
(2) a person required to register with the Texas Ethics
Commission under Chapter 305, Government Code, in connection with
the person's representation of clients in the field of insurance;
or
(3) related to a person described by Subdivision (1) or (2)
of this subsection within the second degree of affinity or
consanguinity.
(e) Each member of the board of directors shall file a
financial statement with the secretary of state in accordance with
Sections 3 and 4, Chapter 421, Acts of the 63rd Legislature, Regular
Session, 1973 (Article 6252-9b, Vernon's Texas Civil Statutes).
(f) A director of the association or any member company or
other entity represented by the director may not receive any money
or valuable thing directly, indirectly, or through any substantial
interest in any other corporation, firm, or business unit for
negotiating, procuring, participating, recommending, or aiding in
a transaction, reinsurance agreement, merger, purchase, sale, or
exchange of assets, policies of insurance, or property made by the
association or the supervisor, conservator, or receiver on behalf
of an impaired insurer. The director, company, or entity may not be
pecuniarily or contractually interested, as principal,
co-principal, agent, or beneficiary, directly, indirectly, or
through any substantial interest in any other corporation, firm, or
business unit, in the transaction, reinsurance agreement, merger,
purchase, sale, or exchange.
Powers and duties of association
Sec. 8. (a) The association shall pay covered claims that
exist before the designation of impairment or that arise within 30
days after the date of the designation of impairment, before the
policy expiration date if the policy expiration date is within 30
days after the date of the designation of impairment, or before the
insured replaces the policy or causes its cancellation if the
insured does so within 30 days after the date of the designation.
The obligation is satisfied by paying to the claimant the full
amount of a covered claim for benefits. The association's
liability is limited to the payment of covered claims. The
association has no liability for any other claim or damages,
including claims for recovery of attorney's fees, prejudgment or
postjudgment interest, or penalties, extracontractual damages,
multiple damages, or exemplary damages, or any other amount sought
by or on behalf of any insured or claimant or any other provider of
goods or services retained by any insured or claimant in connection
with the assertion or prosecution of any claims, without regard to
whether the claims are covered, against the insured or an impaired
insurer, the impaired insurer, the guaranty association, the
receiver, the special deputy receiver, the commissioner, or the
liquidator. This subsection does not exclude the payment of
workers' compensation benefits or other liabilities or penalties
authorized by Title 5, Labor Code, arising from the association's
processing and payment of workers' compensation benefits after the
designation of impairment.
(b) The association shall undertake to discharge the policy
obligations of the impaired insurer, including the duty to defend
insureds under a liability policy, to the extent that the policy
obligations are covered claims under this Act. In performing its
statutory obligations, the association may also enforce any duty
imposed on the insured party or beneficiary under the terms of any
policy of insurance within the scope of this Act. In performing its
statutory obligations under this Act, the association shall not be
considered to be in the business of insurance, shall not be
considered to have assumed or succeeded to any liabilities of the
impaired insurer, and shall not be considered to otherwise stand in
the shoes of the impaired insurer for any purpose, including the
issue of whether the association is amenable to the personal
jurisdiction of the courts of any other state.
(c) The association shall assess insurers amounts necessary
to pay the obligations of the association under Subsection (a) of
this section after an insolvency, the expenses of handling covered
claims subsequent to an insolvency, and other expenses authorized
by this Act. The assessments of each member insurer shall be in the
proportion that the net direct written premiums of the member
insurer for the calendar year preceding the assessment bears to the
net direct written premiums of all member insurers for the calendar
year preceding the assessment. Each member insurer shall be
notified of the assessment not later than the 30th day before the
date on which the assessment is due. A member insurer may not be
assessed in any year an amount greater than two percent of that
member insurer's net direct written premiums for the calendar year
preceding the assessment. If the maximum assessment, with the
other assets of the association, does not provide in any one year an
amount sufficient to make all necessary payments, the funds
available shall be prorated, and the unpaid portion shall be paid as
soon thereafter as funds become available. The association shall
pay claims in any order it considers reasonable, including the
payment of claims as they are received from the claimants or in
groups or categories of claims. The association may defer, in whole
or in part, the assessment of any member insurer if the assessment
would cause the member insurer's financial statement to reflect
amounts of capital or surplus less than the minimum amounts
required for a certificate of authority by any jurisdiction in
which the member insurer is authorized to transact insurance;
provided, however, that during the period of deferment, dividends
may not be paid to shareholders or policyholders. Deferred
assessments shall be paid when the payment will not reduce capital
or surplus below required minimums. The payments shall be refunded
to those companies receiving larger assessments by virtue of the
deferment, or at the election of such a company, credited against
future assessments.
(d) The association shall investigate and adjust,
compromise, settle, and pay covered claims to the extent of the
association's obligation and deny all other claims. The
association may review settlements, releases, and judgments to
which the impaired insurer or its insureds were parties to
determine the extent to which those settlements, releases, and
judgments may be properly contested. Any judgment taken before the
designation of impairment in which an insured under a liability
policy or the insurer failed to exhaust all appeals, any judgment
taken by default or consent against an insured or the impaired
insurer, and any settlement, release, or judgment entered into by
the insured or the impaired insurer, is not binding on the
association, and may not be considered as evidence of liability or
of damages in connection with any claim brought against the
association or any other party under this Act. Notwithstanding any
other provision of this Act or any other law to the contrary, a
covered claim shall not include any claim filed with the guaranty
association on a date that is later than eighteen months after the
date of the order of liquidation and also shall not include claims
that are unknown and unreported as of the date, provided, however,
that a claim for workers' compensation benefits is governed by
Title 5, Labor Code, and the applicable rules of the commissioner of
workers' compensation.
(e) The association shall give notice as the commissioner
directs under Section 10(c) of this Act.
(f) The association shall handle claims through its
employees or through one or more insurers or other persons
designated as servicing facilities. Designation of a servicing
facility is subject to the approval of the commissioner, but such a
designation may be declined by a member insurer.
(g) The association shall reimburse each servicing facility
for obligations of the association paid by the facility and for
expenses incurred by the facility while handling claims on behalf
of the association and shall pay the other expenses of the
association authorized by this Act.
(h) The association may:
(1) employ or retain persons as necessary to handle claims
and perform other duties of the association;
(2) borrow funds necessary to implement this Act in
accordance with the plan of operation;
(3) sue or be sued;
(4) negotiate and become a party to contracts as necessary
to implement this Act, including lump-sum or structured compromise
and settlement agreements with claimants who have claims for
medical or indemnity benefits for a period of three years or more
other than a settlement or lump-sum payment in violation of the
Texas Workers' Compensation Act (Article 8308-1.01 et seq.,
Vernon's Texas Civil Statutes);
(5) perform other acts as necessary or proper to implement
this Act; or
(6) refund to the member insurers in proportion to the
contribution of each member insurer to the association that amount
by which the assets of the association exceed the liabilities, if at
the end of any calendar year the board of directors finds that the
assets of the association exceed the liabilities of the association
as estimated by the board of directors for the coming year.
(i) The association may bring an action against any
third-party administrator, agent, attorney, or other
representative of an insurer for which a receiver has been
appointed to obtain custody and control of all information,
including files, records, and electronic data, related to the
insurer that is appropriate or necessary for the association, or a
similar association in other states, to carry out its duties under
this Act or a similar law of another state. The association has the
absolute right to obtain information under this subsection through
emergency equitable relief, regardless of where the information is
physically located. In bringing an action under this subsection,
the association is not subject to any defense, possessory lien or
other type of lien, or other legal or equitable ground for refusal
to surrender the information that may be asserted against the
receiver of the insurer. The association is entitled to an award of
reasonable attorney's fees and costs incurred by the association in
any action to obtain information under this subsection. The rights
granted to the association under this subsection do not affect the
receiver's title to information, and information obtained under
this subsection remains the property of the receiver while in the
custody of the association.
(j) The board of directors may deposit all money collected
by the association into the Texas Treasury Safekeeping Trust
Company in accordance with procedures established by the
comptroller. The funds deposited shall be accounted for separately
from all other funds by the comptroller to the association.
(k)(1) Notwithstanding Chapter 271, Acts of the 60th
Legislature, Regular Session, 1967 (Article 6252-17, Vernon's
Texas Civil Statutes), the board may hold an open meeting by
telephone conference call if immediate action is required and the
convening at one location of a quorum of the board is not reasonable
or practical.
(2) The meeting is subject to the notice requirements
applicable to other meetings.
(3) The notice of the meeting must specify as the location
of the meeting the location where meetings of the board are usually
held.
(4) Each part of the meeting that is required to be open to
the public shall be audible to the public at the location specified
in the notice of the meeting as the location of the meeting and
shall be tape recorded. The tape recording shall be made available
to the public.
Plan of operation
Sec. 9. (a) The association shall submit to the commissioner
a plan of operation and any amendments necessary or suitable to
ensure the fair, reasonable, and equitable administration of the
association. The plan of operation and any amendments take effect
on approval in writing by the commissioner.
(b) If the association fails to submit suitable amendments
to the plan, the commissioner, after notice and hearing, shall
adopt reasonable rules as necessary or advisable to implement this
Act. Those rules shall continue in force until modified by the
commissioner or superseded by a plan submitted by the association
and approved by the commissioner.
(c) All member insurers shall comply with the plan of
operation.
(d) The plan of operation must:
(1) establish the procedures under which the powers and
duties of the association are performed;
(2) establish procedures for handling assets of the
association;
(3) establish the amount and method of reimbursing members
of the board of directors;
(4) provide for the establishment of a claims filing
procedure that includes, but is not limited to, notice by the
association to claimants, procedures for filing claims seeking
recovery from the association, and a procedure for appealing the
denial of claims by the association; and
(5) establish acceptable forms of proof of covered claims.
(e) A list of claims shall be submitted periodically to the
association or similar organization in another state by the
receiver.
(f) The plan of operation must:
(1) establish regular places and times for meetings of the
board of directors;
(2) establish procedures for records to be kept of all
financial transactions of the association, its agents, and the
board of directors;
(3) provide that any member insurer aggrieved by any final
action or decision of the association may appeal to the
commissioner not later than the 30th day after the date of the
action or decision;
(4) establish the procedures under which selections for the
board of directors are submitted to the commissioner; and
(5) contain additional provisions as necessary or proper
for the execution of the powers and duties of the association.
(g) The plan of operation may provide that any or all powers
and duties of the association, except those under Section 8(c) and
8(h)(2) of this Act, are delegated by contract to a corporation,
association, or other organization that performs or will perform
functions similar to those of the association or its equivalent in
two or more states. The corporation, association, or organization
shall be reimbursed as a servicing facility would be reimbursed and
shall be paid for the performance of any other functions of the
association. A delegation under this subsection takes effect only
with the approval of both the board of directors and the
commissioner and may be made only to a corporation, association, or
organization that extends protection not substantially less
favorable and effective than that provided by this Act. A contract
entered into under this subsection is subject to the performance
standards imposed under Section 2(a), Article 21.28, of this code.
Duties and powers of commissioner
Sec. 10. (a) The commissioner shall notify the association of
the existence of an impaired insurer not later than three days after
the commissioner gives notice of the designation of impairment.
The association is entitled to a copy of any complaint seeking an
order of receivership with a finding of insolvency against a member
company at the same time that the complaint is filed with a court of
competent jurisdiction.
(b) On request of the board of directors, the commissioner
shall provide the association with a statement of the net direct
written premiums of each member insurer.
(c) The commissioner may require that the association
notify the insureds of the impaired insurer and any other
interested parties of the designation of impairment and of their
rights under this Act. The notification shall be by mail at the
last known address, if available, but if sufficient information for
notification by mail is not available, notice by publication in a
newspaper of general circulation is sufficient.
(d) The commissioner shall suspend or revoke, after notice
and hearing, the certificate of authority to transact insurance in
this state of any member insurer that fails to pay an assessment
when due or otherwise fails to comply with the plan of operation.
As an alternative, the commissioner may assess a fine on any member
insurer that fails to pay an assessment when due. The fine may not
exceed the lesser of five percent of the unpaid assessment per month
or $100 per month.
(e) The commissioner may revoke the designation of any
servicing facility if the commissioner finds that claims are being
handled unsatisfactorily.
(f) Any final action or order of the commissioner under this
Act is subject to judicial review by a court of competent
jurisdiction.
(g) Venue in a suit by or against the association or
commissioner relating to any action or ruling of the association or
commissioner made under this Act is in Travis County. The
association or commissioner is not required to give an appeal bond
in an appeal of a cause of action arising under this Act.
Effect of paid claims
Sec. 11. (a) A person recovering under this Act is considered
to have assigned to the association the person's right under the
policy, and the person's rights to recover for the occurrence made
the basis of the claim under this Act under any policy of insurance
issued by an unimpaired insurer to the extent of the person's
recovery from the association. The association may pursue any such
claims to which it is subrogated under this provision in its own
name or in the name of the person recovering under this Act. Each
insured or claimant seeking the protection of this Act shall
cooperate with the association to the same extent as that person
would have been required to cooperate with the impaired insurer.
The association does not have a cause of action against the insured
of the impaired insurer for any sums it has paid out except those
causes of action the impaired insurer would have had if the sums had
been paid by the impaired insurer and except as provided in
Subsection (b) of this section. In the case of an impaired insurer
operating on a plan with assessment liability, payments of claims
of the association do not reduce the liability of the insureds to
the receiver or statutory successor for unpaid assessments.
(b) The association is entitled to recover:
(1) the amount of any covered claim for workers'
compensation insurance benefits and the costs of administration and
defense of those claims paid under this Act from any insured
employer, other than an insured who is exempt from federal income
tax under Section 501(a) of the Internal Revenue Code of 1986 (26
U.S.C. Section 501(a)) by being described by Section 501(c)(3) of
that code, whose net worth on December 31 of the year next preceding
the date the insurer becomes an impaired insurer exceeds $50
million, provided that an insured's net worth on that date shall be
deemed to include the aggregate net worth of the insured and all of
the insured's parent, subsidiary, and affiliated companies as
computed on a consolidated basis; and
(2) the amount of any covered claim and the costs of defense
paid on behalf of any person who is an affiliate of the impaired
insurer and whose liability obligations to other persons are
satisfied in whole or in part by payments made under this Act.
(c) The receiver or statutory successor of an impaired
insurer is bound by settlements of covered claims by the
association or a similar organization in another state. The court
having jurisdiction shall grant those claims priority equal to that
which the claimant would have been entitled to in the absence of
this Act against the assets of the impaired insurer. The expenses
of the association or similar organization in handling claims shall
be accorded the same priority as the receiver's expenses.
(d) The association shall file periodically with the
receiver of the impaired insurer statements of the covered claims
paid by the association and estimates of anticipated claims on the
association that shall preserve the rights of the association
against the assets of the impaired insurer.
Net Worth Exclusion
Sec. 11A. (a) Except for a workers' compensation claim
governed by Title 5, Labor Code, a covered claim does not include
and the association is not liable for any claim arising from a
policy of insurance of any insured whose net worth on December 31 of
the year next preceding the date the insurer becomes an impaired
insurer exceeds $50 million.
(b) The net worth of an insured for purposes of this section
includes the aggregate net worth of the insured and all of the
insured's parent, subsidiary, and affiliated companies computed on
a consolidated basis.
(c) This section does not apply:
(1) to third-party claims against an insured that has:
(A) applied for or consented to the appointment of a
receiver, trustee, or liquidator for all or a substantial part of
the insurer's assets;
(B) filed a voluntary petition in bankruptcy; or
(C) filed a petition or an answer seeking a reorganization
or arrangement with creditors or to take advantage of any
insolvency law; or
(2) if an order, judgment, or decree is entered by a court of
competent jurisdiction, on the application of a creditor,
adjudicating the insured bankrupt or insolvent or approving a
petition seeking reorganization of the insured or of all or a
substantial part of its assets.
(d) In an instance described by Subsection (c) of this
section, the association is entitled to assert a claim in the
bankruptcy or receivership proceeding to recover the amount of any
covered claim and costs of defense paid on behalf of the insured.
(e) The association may establish procedures for requesting
financial information from an insured or claimant on a confidential
basis for the purpose of applying sections concerning the net worth
of first-party and third-party claimants, subject to any
information requested under this subsection being shared with any
other association similar to the association and with the
liquidator for the impaired insurer on the same confidential basis.
If the insured or claimant refuses to provide the requested
financial information, the association requests an auditor's
certification of that information, and the auditor's certification
is available but not provided, the association may deem the net
worth of the insured or claimant to be in excess of $50 million at
the relevant time.
(f) In any lawsuit contesting the applicability of Section
11(b) of this article or this section when the insured or claimant
has declined to provide financial information under the procedure
provided in the plan of operation pursuant to Section 9 of this
article, the insured or claimant bears the burden of proof
concerning its net worth at the relevant time. If the insured or
claimant fails to prove that its net worth at the relevant time was
less than the applicable amount, the court shall award the
association its full costs, expenses, and reasonable attorney's
fees in contesting the claim.
Nonduplication of Recovery
Sec. 12. (a) Any person who has a claim under an insurance
policy, without regard to whether the policy is issued by a member
insurer, other than a policy of an impaired insurer, that arises
from the same facts, injury, or loss that gave rise to a claim
against an impaired insurer or its insured, is required to first
exhaust the person's rights under the policy, including any claim
for indemnity or medical benefits under any workers' compensation,
health, disability, uninsured motorist, personal injury
protection, medical payment, liability, or other policy, and the
right to defense under the policy. An amount payable as a covered
claim under this Act is reduced by the full applicable limits of the
other insurance policy and the association shall receive a full
credit in the amount of the full applicable limits, except that a
covered claim for workers' compensation benefits is subject only to
reduction by a third-party liability recovery under Section
417.002, Labor Code. Subject to the provisions of Subsection (a-1)
below, the association's credit or setoff under this section shall
be deducted from damages incurred by the claimant, and the
remaining sum shall be the maximum amount payable by the
association, except that the association's liability shall not
exceed $300,000 or the limits of the policy under which the claim is
made, whichever is less. To the extent that the association's
obligation is reduced by the application of this subsection, the
liability of the person insured by the impaired insurer's policy
for the claim is reduced in the same amount.
(a-1) Notwithstanding Subsection (a) of this section, if a
claimant is seeking recovery of policy benefits that, but for the
insolvency of the impaired insurer, would be subject to lien or
subrogation by a workers' compensation insurer, health insurer or
any other insurer, whether impaired or not, then the association's
credit or offset shall be deducted from the damages incurred by the
claimant or the limits of the policy under which the claim is made,
whichever is less. In no event shall a claimant's recovery under
this Act result in a total recovery to the claimant that is greater
than that which would have resulted but for the insolvency of the
impaired insurer. Subject to Section 5(8) of this Act and Title 5,
Labor Code, a claim for workers' compensation benefits under this
Act may not result in a recovery to the claimant that is less than
that which would have resulted but for the insolvency of the
impaired insurer.
(b) A person who has a claim that may be recovered under more
than one insurance guaranty association or its equivalent shall
seek recovery first from the association of the place of residence
of the insured, except that if it is a first-party claim for damage
to property with a permanent location, the person shall seek
recovery first from the association of the location of the
property, and if it is a workers' compensation claim the person
shall seek recovery first from the association of the residence of
the claimant. The association shall have a credit or setoff against
any amount of benefits under this Act, in the amount of the
claimant's recovery from the guaranty association or equivalent.
Subject to the provisions of Subsection (b-1) below, the
association's credit or setoff under this Section shall be deducted
from the damages incurred by the claimant, and the remaining sum
shall be the maximum amount payable by the association, except that
the association's liability shall not exceed $300,000.
(b-1) Notwithstanding Subsection (b) of this section, if a
claimant is seeking recovery of policy benefits that, but for the
insolvency of the impaired insurer, would be subject to lien or
subrogation by a workers' compensation insurer, health insurer or
any other insurer, whether impaired or not, then the association's
credit or offset shall be deducted from the damages incurred by the
claimant or the limits of the policy under which the claim is made,
whichever is less. In no event shall a claimant's recovery under
this Act result in a total recovery to the claimant that is greater
than that which would have resulted but for the insolvency of the
impaired insurer. Subject to Section 5(8) of this Act and Title 5,
Labor Code, a claim for workers' compensation benefits under this
Act shall not result in a recovery to the claimant that is less than
that which would have resulted but for the insolvency of the
impaired insurer.
Financial condition of member insurers; prevention of insolvencies
Sec. 13. (a) The association shall have access to the books
and records of a member insurer in receivership, in order to make a
determination of the extent of the impact on the association in the
event such member becomes impaired. The association shall have the
authority to perform or cause to be performed an actuarial and
operational analysis of the member insurer and prepare a report on
matters relating to the impact or potential impact on the
association in the event of impairment. Such reports shall not be
public documents.
(b) At the conclusion of any domestic insurer insolvency in
which the association was obligated to pay covered claims, the
board of directors may prepare a report on the history and causes of
the insolvency, based on the information available to the
association, and may submit the report to the commissioner.
(c) There shall be no liability on the part of, and no cause
of action of any nature shall arise against the association or its
agents or employees, the board of directors, member insurers, or
the commissioner or the commissioner's authorized representative
for any statement made in good faith by them in any report or
recommendation made under this section.
Examination of the association
Sec. 14. Not later than April 30 of each year, the association
shall submit an audited financial statement to the state auditor
for the preceding calendar year in a form approved by the state
auditor's office.
Tax exemption
Sec. 15. The association is exempt from payment of all fees
and all taxes levied by this state or any of its subdivisions except
taxes levied on real or personal property.
Immunity; attorney general representation
Sec. 16. (a) There is no liability on the part of, and no
cause of action of any nature arises against, any member insurer,
the association or its agents or employees, the board of directors,
receiver, special deputy receiver or its agents or employees, or
the commissioner or the commissioner's representatives for any good
faith action or failure to act in the performance of powers and
duties under this Act.
(b) The attorney general shall defend any action to which
Subsection (a) applies that is brought against a member insurer or
its agents or employees, the association or its agents or
employees, members of the association's board of directors, a
special deputy receiver to its agents or employees, or the
commissioner or the commissioner's representatives. This
subsection continues to apply to an action instituted after the
defendant's service with the guaranty association, commissioner,
or department has terminated. This subsection does not require the
attorney general to defend any 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 any member insurer of the association or its agents or
employees, the association or its agents or employees, members of
the association's board of directors, a special deputy receiver or
its agents or employees with respect to any actions filed regarding
the disposition of a claim filed with the guaranty association
under this Act or to an issue other than the applicability or effect
of the immunity created by Subsection (a). The association may
contract with the attorney general under the Interagency
Cooperation Act (Article 4413(32), Vernon's Texas Civil Statutes)
to provide legal services not covered under this subsection.
Stay of Proceedings
Sec. 17. (a) All proceedings in which an impaired insurer is a
party or is obligated to defend a party in any court in this state,
except proceedings directly related to the receivership or
instituted by the receiver, shall be stayed as to all parties and
for all purposes for six months and any additional time thereafter
as may be determined by the court from the date of the designation
of impairment or an ancillary proceeding is instituted in the
state, whichever is later, to permit proper defense by the
association of all pending causes of action. A deadline imposed
under the Texas Rules of Civil Procedure or the Texas Rules of
Appellate Procedure is tolled during the stay. Statutes of
limitation or repose are not tolled during the stay, and any action
filed during the stay is stayed upon the filing of the action. The
court in which the delinquency proceeding is pending has exclusive
jurisdiction regarding the application, enforcement, and extension
of the stay and may issue injunctions or other similar orders to
enforce the stay. If the impaired insurer is not domiciled in this
state, the commissioner may bring an ancillary conservation
proceeding under Section 21A.401 of this code, for the purpose of
determining the application, enforcement, and extension of the
stay.
(b) As to any covered claims arising from a judgment under
any decision, verdict, or finding based on the default of the
impaired insurer or its failure to defend an insured, the
association either on its own behalf or on behalf of the insured
shall be entitled, upon application, to have the judgment, order,
decision, verdict, or finding set aside by the same court or
administrator that made the judgment, order, decision, verdict, or
finding and shall be permitted to defend the claim on the merits.
The receiver or statutory successor of an impaired insurer covered
by this Act shall permit access by the board or its authorized
representative to records of the impaired insurer as are necessary
for the board in carrying out its functions under this Act with
regard to covered claims. In addition, the receiver or statutory
successor shall provide the board or its representative with copies
of the records on request of the board and at the expense of the
board.
Assessments
Sec. 18. (a) If the commissioner determines that an insurer
has become an impaired insurer, the association shall promptly
estimate the amount of additional funds, by lines of business,
needed to supplement the assets of the impaired insurer immediately
available to pay covered claims. The board shall make additional
funds available as the actual need arises for each impaired
insurer.
(b) If the board of directors determines that additional
funds are needed in any of the three accounts, it shall make
assessments as necessary to produce the necessary funds. The
association, in determining the proportionate amount to be paid by
individual insurers under an assessment, shall take into
consideration the lines of business written by the impaired insurer
and shall assess individual insurers in proportion to the ratio
that the total net direct written premium collected in this state by
the insurer for those lines of business bears to the total net
direct written premium collected by all insurers, other than
impaired insurers, in this state for those lines of business. The
association shall determine the total net direct written premium of
an individual insurer and for all insurers in the state from the
insurers' annual statements for the year preceding assessment.
Except as otherwise provided by this subsection, assessments under
this subsection during a calendar year may be made up to, but not in
excess of, two percent of each insurer's net direct written premium
for the preceding calendar year in the lines of business for which
the assessments are being made. In the event of a natural disaster
or other catastrophic event, the association may apply to the
governor, in the manner prescribed by the plan of operation, for
authority to assess each member insurer that writes insurance
coverage, other than motor vehicle coverage or workers'
compensation coverage, an additional amount not to exceed two
percent of the insurer's net direct written premiums for the
preceding calendar year. If the maximum assessment in any calendar
year does not provide an amount sufficient for payment of covered
claims of impaired insurers, assessments may be made in the next and
successive calendar years.
(c) It shall be the duty of each insurer to pay the amount of
an assessment under Subsection (b) of this section to the
association not later than the 30th day after the association gives
notice of the assessment.
(d) Assessments may be collected on behalf of the
association by the commissioner through suits brought for that
purpose. Venue for those suits is in Travis County. Either party
to the action may appeal to the appellate court having jurisdiction
over the cause, the appeal shall be at once returnable to the
appellate court having jurisdiction over the cause, and the action
so appealed shall have precedence in the appellate court over all
causes of a different character pending before the court. The
commissioner is not required to give an appeal bond in any cause
arising under this subsection.
(e) An insurer designated as an impaired insurer by the
commissioner is exempt from assessment from and after the date of
the designation and until the commissioner determines that the
insurer is no longer an impaired insurer.
(f) Funds advanced by the association under this Act shall
not become assets of the impaired insurer but are considered a
special fund loaned to the impaired insurer for payment of covered
claims. That loan is repayable to the extent available from the
funds of the insurer.
(g) Income from the investment of any of the funds of the
association may be transferred to the administrative account
authorized under this Act. The funds in the account may be used by
the association for the purpose of meeting administrative costs and
other general expenses of the association. On notification by the
association of the amount of any additional funds needed for the
administrative account, the association shall assess member
insurers to obtain the needed funds in the manner set out in this
section. The commissioner shall consider the net direct written
premium collected in this state for all lines of business covered by
this Act. An assessment for administrative expenses incurred by a
supervisor or conservator appointed by the commissioner or a
receiver appointed by a court of competent jurisdiction for a
nonmember of the association or unauthorized insurer operating in
this state may not exceed $1,000,000 each calendar year.
(h) Expired.
Purpose of assessment
Sec. 19. (a) The amounts provided under assessments made
under this Act are in addition to the marshaling of assets by the
receiver under Article 21.28 of this code for the purpose of making
payments on behalf of an impaired insurer.
(b) This section does not require the receiver to exhaust
the assets of the impaired insurer before an assessment is made or
before funds derived from an assessment may be used to pay covered
claims.
Accounting for and repayment of assessments
Sec. 20. (a) On receipt from an insurer of payment of an
assessment or partial assessment required by the association under
Section 18(b) of this Act, the association shall provide the
insurer with a participation receipt, which shall create a
liability against the account for the line or lines of business for
which the assessment was made.
(b) The account from which an advance is made to an impaired
insurer for the payment of covered claims shall be regarded as a
general creditor of the impaired insurer for the amount of funds so
advanced; provided, however, that with reference to the remaining
balance of any advances not expended in payment of covered claims,
the claim of the account has preference over other general
creditors. The association of any impaired insurer shall adopt
accounting procedures reflecting the expenditure and use of all
funds and shall make a final report of the expenditure and use of
the funds to the commissioner, which final report shall set forth
the remaining balance, if any, from the moneys advanced. The
association shall also make any interim reports concerning such
accounting as may be required by the commissioner or requested by
the conservator. On completion of the final report, the
association shall, as soon thereafter as is practicable, refund by
line of business the remaining balance of those advances to the
accounts maintained by the association.
(c) If the association at any time determines that there
exist moneys in the account for any line of business in excess of
those reasonably necessary for efficient future operation under the
terms of this Act, it shall cause those excess moneys to be returned
pro rata to the holders of any participation receipts on which there
is a balance outstanding after deducting any credits taken against
premium taxes as authorized in Section 21 of this Act, which
receipts were issued for an assessment on the same line of business
as that for which the excess moneys are found to exist. If after
such a distribution the association finds that an excess amount
still exists in the fund, or if there are no such participation
receipts on which there is an outstanding balance, it shall cause
the excess amount to be deposited with the comptroller to the credit
of the general revenue fund.
Recognition of assessments in premium tax offset; assignment of
credit
Sec. 21. (a) One hundred percent of any assessment paid by an
insurer under this Act shall be allowed to that insurer as a credit
against its premium tax under Article 4.10 of this code. The tax
credit referred to in this section shall be allowed at a rate of 10
percent per year for 10 successive years following the date of
assessment and, at the option of the insurer, may be taken over an
additional number of years. The balance of any tax credit not
claimed in a particular year may be reflected in the books and
records of the insurer as an admitted asset of the insurer for all
purposes, including exhibition in annual statements under Article
6.12 of this code.
(b) Available credit against premium tax allowed under
Subsection (a) of this section may be transferred or assigned among
or between insurers if:
(1) a merger, acquisition, or total assumption of
reinsurance among or between the insurers occurs; or
(2) the commissioner by order approves the transfer or
assignment.
Release from receivership
Sec. 22. An impaired insurer placed in receivership for which
advances have been made under this Act may not be authorized, on
release from receivership, to issue new or renewal insurance
policies until the impaired insurer has repaid in full to the
association the funds advanced by it. However, the commissioner
may, on application of the association and after hearing, permit
the issuance of new policies in accordance with a plan of operations
by the released insurer for repayment of advances. The
commissioner, in approving the plan, may place restrictions on the
issuance of new or renewal policies as the commissioner considers
necessary to the implementation of the plan.
Rules and regulations
Sec. 23. The State Board of Insurance is authorized and
directed to issue such reasonable rules and regulations as may be
necessary to carry out the various purposes and provisions of this
article, and in augmentation thereof.
Sec. 24. Blank.
Controlling law
Sec. 25. (a) Except as provided in Subsection (b) of this
section, if a conflict exists between this Act and any other
statutory provision relating to the association, this Act shall
control.
(b) This section does not apply to a conflict between this
Act and:
(1) Subtitle A, Title 5, Labor Code, except that this Act
controls with respect to subrogation rights of an insurance carrier
under Chapter 417, Labor Code, against an insured of an impaired
insurer or the association;
(2) Subchapter D, Chapter 5, of this code; or
(3) Article 5.76-2, 5.76-3, 5.76-4, or 5.76-5 of this code.
Coverage for Workers' Compensation Insurance Policies Issued by
Texas Workers' Compensation Insurance Facility
Sec. 26. (a) Notwithstanding any other provision of this
article, this article applies to each policy of insurance issued
under Article 5.76 of this code or Article 5.76-2 of this code, as
that article existed before its repeal.
(b) Notwithstanding any other provision of this article,
after the conversion of the Texas workers' compensation insurance
facility to a stock insurance company, that converted facility
shall be considered an impaired insurer for purposes of this
article if any of the actions described by Section 5(9)(A) or (B) of
this article occur to the converted facility.
(c) A claim under such an insurance policy is a covered
claim for purposes of this article if the claim satisfies the
definition under Section 5(8) of this article, whether or not the
converted facility:
(1) issued or assumed the policy; or
(2) was licensed to do business in this state at the time:
(A) the policy was written; or
(B) the converted facility became an impaired insurer.
(d) If a conflict exists between this section and any other
statute relating to the Texas workers' compensation insurance
facility or the Texas Property and Casualty Insurance Guaranty
Association, this section controls.
Immunity
Sec. 27. There is no liability on the part of, and a cause of
action does not arise against, any member insurer of the
association, the association, an agent or employee of the
association, a member of the board of directors of the association,
or the commissioner or the commissioner's representative for any
act or omission in the performance of any activity related to the
negotiations relating to the privatization of the Texas workers'
compensation insurance facility. This section applies to each
activity undertaken by such a person or entity, regardless of the
date of the act or omission.
Added by Acts 1971, 62nd Leg., p. 1362, ch. 360, Sec. 1, eff. May 25,
1971. Amended by Acts 1975, 64th Leg., p. 56, ch. 32, Sec. 3, eff.
April 3, 1975; Acts 1975, 64th Leg., p. 1094, ch. 414, Sec. 1, eff.
Sept. 1, 1975; Acts 1977, 65th Leg., p. 1950, ch. 775, Sec. 1, eff.
Aug. 29, 1977; Acts 1977, 65th Leg., p. 2110, ch. 845, Sec. 1 to 12,
eff. Aug. 29, 1977; Acts 1979, 66th Leg., p. 1057, ch. 487, Sec. 1,
eff. Aug. 27, 1979; Acts 1981, 67th Leg., p. 2641, ch. 707, Sec.
4(30), eff. Aug. 31, 1981; Sec. 3 amended by Acts 1983, 68th Leg.,
p. 282, ch. 56, Sec. 1, eff. May 3, 1983; Acts 1985, 69th Leg., ch.
904, Sec. 1, eff. June 15, 1985; Sec. 5(2) amended by Acts 1985,
69th Leg., ch. 904, Sec. 2, eff. June 15, 1985; Sec. 14C amended by
Acts 1985, 69th Leg., ch. 904, Sec. 5, eff. June 15, 1985; Sec. 3
amended by Acts 1987, 70th Leg., ch. 1073, Sec. 35, eff. Sept. 1,
1987; Sec. 5(2), (7) amended by Acts 1987, 70th Leg., ch. 1073,
Sec. 36, eff. Sept. 1, 1987; Sec. 5(11), (12) added by Acts 1987,
70th Leg., ch. 1073, Sec. 28, eff. Sept. 1, 1987; Sec. 7 amended by
Acts 1987, 70th Leg., ch. 1073, Sec. 29, eff. Sept. 1, 1987; Sec.
14, subsec. E amended by Acts 1987, 70th Leg., ch. 1073, Sec. 30,
37, eff. Sept. 1, 1987; Sec. 20 amended by Acts 1987, 70th Leg., ch.
1073, Sec. 37, eff. Sept. 1, 1987; Sec. 3 amended by Acts 1989, 71st
Leg., ch. 273, Sec. 7, eff. Aug. 28, 1989; Sec. 5(2) amended by Acts
1989, 71st Leg., ch. 1082, Sec. 6.13, eff. Sept. 1, 1989; Sec.
5(3), (12) amended by Acts 1989, 71st Leg., ch. 273, Sec. 8, eff.
Aug. 28, 1989; Secs. 6, 7 amended by Acts 1989, 71st Leg., ch. 1082,
Sec. 6.14, eff. Sept. 1, 1989; Sec. 7A added by Acts 1989, 71st
Leg., ch. 1082, Sec. 6.23, eff. Sept. 1, 1989; Sec. 7B added by Acts
1989, 71st Leg., ch. 1082, Sec. 6.15, eff. Sept. 1, 1989; Sec. 8
amended by Acts 1989, 71st Leg., ch. 1082, Sec. 6.16, eff. Sept. 1,
1989; Secs. 12, 16 amended by Acts 1989, 71st Leg., ch. 1082, Sec.
6.14, eff. Sept. 1, 1989; Secs. 7, 7A, 9, 11 amended by Acts 1991,
72nd Leg., ch. 242, Sec. 11.05, eff. Sept. 1, 1991; Sec. 14(B)(1)
amended by Acts 1991, 72nd Leg., ch. 242, Sec. 9.09, eff. Sept. 1,
1991; Sec. 14(B)(3) added by Acts 1991, 72nd Leg., ch. 242, Sec.
11.25, Sept. 1, 1991; Sec. 15 amended by Acts 1991, 72nd Leg., ch.
242, Sec. 11.05, eff. Sept. 1, 1991. Amended by Acts 1991, 72nd
Leg., 2nd C.S., ch. 12, Sec. 1.20, eff. Jan. 1, 1992; Sec. 3 amended
by Acts 1993, 73rd Leg., ch. 685, Sec. 9.01, eff. Sept. 1, 1993;
Sec. 5(8) amended by Acts 1993, 73rd Leg., ch. 685, Sec. 9.02, eff.
Sept. 1, 1993; Sec. 5(9) amended by Acts 1993, 73rd Leg., ch. 685,
Sec. 9.03, eff. Sept. 1, 1993; Sec. 5(11) amended by Acts 1993,
73rd Leg., ch. 685, Sec. 9.04, eff. Sept. 1, 1993; Sec. 7(d)
amended by Acts 1993, 73rd Leg., ch. 685, Sec. 9.05, eff. Sept. 1,
1993; Sec. 7(f) added by Acts 1993, 73rd Leg., ch. 685, Sec. 9.06,
eff. Sept. 1, 1993; Sec. 8(b) amended by Acts 1993, 73rd Leg., ch.
685, Sec. 9.07, eff. Sept. 1, 1993; Sec. 8(d) amended by Acts 1993,
73rd Leg., ch. 685, Sec. 9.08, eff. Sept. 1, 1993; Sec. 8(h)
amended by Acts 1993, 73rd Leg., ch. 685, Sec. 9.09, eff. Sept. 1,
1993; Sec. 8(i) repealed by Acts 1993, 73rd Leg., ch. 685, Sec.
9.10, eff. Sept. 1, 1993; Sec. 8(k) added by Acts 1993, 73rd Leg.,
ch. 685, Sec. 9.11, eff. Sept. 1, 1993; Sec. 9(d) amended by Acts
1993, 73rd Leg., ch. 685, Sec. 9.12, eff. Sept. 1, 1993; Sec. 9(e)
amended by Acts 1993, 73rd Leg., ch. 685, Sec. 9.13, eff. Sept. 1,
1993; Sec. 11(a) amended by Acts 1993, 73rd Leg., ch. 685, Sec.
9.14, eff. Sept. 1, 1993; Sec. 12(a) amended and Sec. 12 (a-1)
added by Acts 1993, 73rd Leg., ch. 685, Sec. 9.15, eff. Sept. 1,
1993; Sec. 12(b) amended and Sec. 12(b-1) added by Acts 1993, 73rd
Leg., ch. 685, Sec. 9.16, eff. Sept. 1, 1993; Sec. 13 amended by
Acts 1993, 73rd Leg., ch. 685, Sec. 9.17, eff. Sept. 1, 1993; Sec.
14 amended by Acts 1993, 73rd Leg., ch. 685, Sec. 9.18, eff. Sept.
1, 1993; Sec. 16(a) amended by Acts 1993, 73rd Leg., ch. 685, Sec.
9.19, eff. Sept. 1, 1993; Sec. 17 amended by Acts 1993, 73rd Leg.,
ch. 685, Sec. 9.20, eff. Sept. 1, 1993; Sec. 18(h) added by Acts
1993, 73rd Leg., ch. 685, Sec. 9.21, eff. Sept. 1, 1993; Sec. 25
added by Acts 1993, 73rd Leg., ch. 685, Sec. 9.22, eff. Sept. 1,
1993; Sec. 5(8) amended by Acts 1995, 74th Leg., ch. 1055, Sec. 4,
eff. June 17, 1995; Sec. 7(a) amended by Acts 1995, 74th Leg., ch.
1055, Sec. 5, eff. June 17, 1995; Sec. 8(b) amended by Acts 1995,
74th Leg., ch. 1055, Sec. 6, eff. June 17, 1995; Sec. 11(b) amended
by Acts 1995, 74th Leg., ch. 275, Sec. 1, eff. June 5, 1995; Sec.
12(a) amended by Acts 1995, 74th Leg., ch. 1055, Sec. 7, eff. June
17, 1995; Sec. 14 amended by Acts 1995, 74th Leg., ch. 1055, Sec. 8,
eff. June 17, 1995; Sec. 17 amended by Acts 1995, 74th Leg., ch.
1055, Sec. 9, eff. June 17, 1995; Sec. 18(b), (c) and (h) amended by
Acts 1995, 74th Leg., ch. 1055, Sec. 10, eff. June 17, 1995; Sec.
5(8) amended by Acts 1997, 75th Leg., ch. 1412, Sec. 1, eff. Sept.
1, 1997; Sec. 8(j) amended by Acts 1997, 75th Leg., ch. 1423, Sec.
11.52, eff. Sept. 1, 1997; Sec. 20(c) amended by Acts 1997, 75th
Leg., ch. 1423, Sec. 11.53, eff. Sept. 1, 1997; Sec. 21 amended by
Acts 1997, 75th Leg., ch. 764, Sec. 1, eff. Sept. 1, 1997; Secs. 26,
27 added by Acts 1997, 75th Leg., ch. 594, Sec. 1.13, eff. June 9,
1997; Sec. 3 amended by Acts 1999, 76th Leg., ch. 1126, Sec. 5, eff.
Aug. 30, 1999; Sec. 5(10) amended by Acts 1999, 76th Leg., ch.
1126, Sec. 6, eff. Aug. 30, 1999; Sec. 3(b) amended by Acts 2001,
77th Leg., ch. 1195, Sec. 2.07, eff. Sept. 1, 2001; Sec. 5(8)
amended by Acts 2003, 78th Leg., ch. 1218, Sec. 1, eff. June 20,
2003; Sec. 5(9) amended by Acts 2003, 78th Leg., ch. 1218, Sec. 1,
eff. June 20, 2003; Sec. 8(a) amended by Acts 2003, 78th Leg., ch.
1218, Sec. 2, eff. June 20, 2003; Sec. 8(d) amended by Acts 2003,
78th Leg., ch. 1218, Sec. 2, eff. June 20, 2003; Sec. 11(b) amended
by Acts 2003, 78th Leg., ch. 1218, Sec. 3, eff. June 20, 2003; Sec.
11A added by Acts 2003, 78th Leg., ch. 1218, Sec. 4, eff. June 20,
2003; Sec. 12 amended by Acts 2003, 78th Leg., ch. 1218, Sec. 5,
eff. June 20, 2003; Sec. 17 amended by Acts 2003, 78th Leg., ch.
1218, Sec. 6, eff. June 20, 2003; Sec. 25(b) amended by Acts 2003,
78th Leg., ch. 1218, Sec. 7, eff. June 20, 2003; Sec. 3(a) amended
by Acts 2005, 79th Leg., ch. 995, Sec. 2, eff. Sept. 1, 2005; Sec.
5(8) amended by Acts 2005, 79th Leg., ch. 995, Sec. 3, eff. Sept. 1,
2005; Sec. 8(d) amended by Acts 2005, 79th Leg., ch. 265, Sec.
6.070, eff. Sept. 1, 2005; Sec. 8(d) amended by Acts 2005, 79th
Leg., ch. 995, Sec. 4, eff. Sept. 1, 2005; Sec. 8(i) added by Acts
2005, 79th Leg., ch. 995, Sec. 4, eff. Sept. 1, 2005; Sec. 10(g)
amended by Acts 2005, 79th Leg., ch. 995, Sec. 5, eff. Sept. 1,
2005; Sec. 11(b) amended by Acts 2005, 79th Leg., ch. 995, Sec. 6,
eff. Sept. 1, 2005; Sec. 11A amended by Acts 2005, 79th Leg., ch.
995, Sec. 7, eff. Sept. 1, 2005; Sec. 17(a) amended by Acts 2005,
79th Leg., ch. 995, Sec. 8, eff. Sept. 1, 2005.
Article: 7.02 7.19-1 7.20 7.20-1 21.11-2 21.20-2 21.28-A 21.28-C 21.28-D 21.28-E 21.31 21.32 21.32A 21.39 21.39-A
Last modified: August 10, 2007
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