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Texas Insurance Code - Not Codified - Section 21A.001. Construction And Purpose

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.001. Construction And Purpose

Sec. 21A.001. CONSTRUCTION AND PURPOSE.  (a) This chapter
may be cited as the Insurer Receivership Act.
	(b)  This chapter may not be interpreted to limit the powers
granted the commissioner under other provisions of law.
	(c)  This chapter shall be liberally construed to support the
purpose stated in Subsection (e).
	(d)  All powers and authority of a receiver under this
chapter are cumulative and are in addition to all powers and
authority that are available to a receiver under law other than this
chapter.
	(e)  The purpose of this chapter is to protect the interests
of insureds, claimants, creditors, and the public generally,
through:
	(1)  early detection of any potentially hazardous condition
in an insurer and prompt application of appropriate corrective
measures;
	(2)  improved methods for conserving and rehabilitating
insurers;
	(3)  enhanced efficiency and economy of liquidation, through
clarification of the law, to minimize legal uncertainty and
litigation;
	(4)  apportionment of any unavoidable loss in accordance
with the statutory priorities set out in this chapter;
	(5)  lessening the problems of interstate receivership by:
	(A)  facilitating cooperation between states in delinquency
proceedings;  and
	(B)  extending the scope of personal jurisdiction over
debtors of the insurer located outside this state;
	(6)  regulation of the business of insurance by the impact of
the law relating to delinquency procedures and related substantive
rules;  and
	(7)  providing for a comprehensive scheme for the
receivership of insurers and those subject to this chapter as part
of the regulation of the business of insurance in this state because
proceedings in cases of insurer insolvency and delinquency are
deemed an integral aspect of the business of insurance and are of
vital public interest and concern.

Added by Acts 2005, 79th Leg., ch. 995, Sec. 1, eff. Sept. 1, 2005.

Last modified: August 11, 2007