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Texas Insurance Code - Not Codified - Section 21A.052. Commencement Of Formal Delinquency Proceeding

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.052. Commencement Of Formal Delinquency Proceeding

Sec. 21A.052. COMMENCEMENT OF FORMAL DELINQUENCY
PROCEEDING.  (a) Any formal delinquency proceeding against a
person shall be commenced by filing a petition in the name of the
commissioner or department.
	(b)  The petition must state the grounds upon which the
proceeding is based and the relief requested and may include a
prayer for restraining orders and injunctive relief as described in
Section 21A.008.  On the filing of the petition or order, a copy
shall be forwarded by first class mail or electronic communication
as permitted by the receivership court to the insurance regulatory
officials and guaranty associations in states in which the insurer
did business.
	(c)  Any petition that prays for injunctive relief must be
verified by the commissioner or the commissioner's designee, but
need not plead or prove irreparable harm or inadequate remedy at
law.  The commissioner shall provide only the notice as the
receivership court may require.
	(d)  If any temporary restraining order is prayed for:
	(1)  the receivership court may issue an initial order
containing the relief requested;
	(2)  the receivership court shall set a time and date for the
return of summons, not later than 10 days after the time and date of
the issuance of the initial order, at which time the person
proceeded against may appear before the receivership court for a
summary hearing;
	(3)  the order must state the time and date of its issuance;
and
	(4)  the order may not continue in effect beyond the time and
date set for the return of summons, unless the receivership court
expressly enters one or more orders extending the restraining
order.
	(e)  If a temporary restraining order is not requested, the
receivership court shall cause summons to be issued.  The summons
must specify a return date not later than the 30th day after the
date of issuance and that an answer must be filed at or before the
return date.

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

Last modified: August 11, 2007