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Texas Insurance Code - Not Codified - Section 21A.015. Approval And Payment Of Expenses

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.015. Approval And Payment Of Expenses

Sec. 21A.015. APPROVAL AND PAYMENT OF EXPENSES.  (a) The
receiver may pay any expenses under contracts, leases, employment
agreements, or other arrangements entered into by the insurer prior
to receivership, as the receiver deems necessary for the purposes
of this chapter.  The receiver is not required to pay any expenses
that the receiver determines are not necessary, and may reject any
contract pursuant to Section 21A.013.
	(b)  Receivership expenses other than those described in
Subsection (a) must be paid in accordance with Subsections (c)-(f).
	(c)  The receiver shall submit to the receivership court an
application pursuant to Section 21A.007 to approve:
	(1)  the terms of compensation of each special deputy or
contractor with respect to which the total amount of the
compensation is reasonably expected by the receiver for the
duration of the delinquency proceeding to exceed $250,000, or
another amount established by the receivership court;  and
	(2)  any other anticipated expense in excess of $25,000, or
another amount established by the receivership court.
	(d)  The receiver may, as the receiver deems appropriate,
submit an application to approve any compensation, anticipated
expenses, or incurred expenses not described by Subsection (c)(1).
	(e)  The receiver may pay any expenses not requiring
receivership court approval and any expenses approved by the
rehabilitation or liquidation order as the expenses are incurred.
	(f)  The approval of expenses by the receivership court does
not prejudice the right of the receiver to seek any recovery,
recoupment, disgorgement, or reimbursement of fees based on
contract or causes of action recognized in law or in equity.
	(g)  On a quarterly basis, or as otherwise provided by the
receivership court, the receiver shall submit to the receivership
court a report summarizing the expenses incurred during the period.
	(h)  Receivership court approval may not be required to pay
expenses incurred by the receiver in connection with the appeal of
an order of the receivership court.
	(i)  All expenses of receivership shall be paid from the
assets of the insurer, except as provided by this subsection.  In
the event that the property of the insurer does not contain
sufficient cash or liquid assets to defray the expenses incurred,
the commissioner may advance funds from the account established
under Section 21A.304(c).  Any amounts advanced shall be repaid to
the account out of the first available money of the insurer.

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

Last modified: August 11, 2007