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Texas Insurance Code - Not Codified - Section 21A.102. Powers And Duties Of Rehabilitator

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.102. Powers And Duties Of Rehabilitator

Sec. 21A.102. POWERS AND DUTIES OF REHABILITATOR.  (a) The
rehabilitator may appoint one or more special deputies.  A special
deputy serves at the pleasure of the rehabilitator and has all the
powers and responsibilities of the rehabilitator granted under this
section, unless specifically limited by the rehabilitator.  The
rehabilitator may employ or contract with legal counsel, actuaries,
accountants, appraisers, consultants, clerks, assistants, and
other personnel as may be deemed necessary.  Any special deputy or
any other person with whom the rehabilitator contracts under this
subsection may act on behalf of the commissioner only in the
commissioner's capacity as rehabilitator.  Any person with whom the
rehabilitator contracts under this subsection is not considered an
agent of the state, and any contract entered into under this
subsection does not constitute a contract with the state.  The
provisions of any law governing the procurement of goods and
services by the state does not apply to any contract entered into by
the commissioner as rehabilitator.  The compensation of any special
deputies, employees, and contractors and all expenses of taking
possession of the insurer and of conducting the rehabilitation
shall be fixed by the rehabilitator, with the approval of the
receivership court in accordance with Section 21A.015, and shall be
paid out of the property of the insurer.  The persons appointed
under this subsection serve at the pleasure of the rehabilitator.
If the rehabilitator deems it necessary to the proper performance
of the rehabilitator's duties under this chapter, the rehabilitator
may appoint an advisory committee of policyholders, claimants, or
other creditors, including guaranty associations.  The advisory
committee serves at the pleasure of the rehabilitator and without
compensation or reimbursement for expenses.  The rehabilitator or
the receivership court in rehabilitation proceedings conducted
under this chapter may not appoint another committee of any nature.
	(b)  The rehabilitator may take action as the rehabilitator
deems necessary or appropriate to reform and revitalize the
insurer, including canceling policies, insurance and reinsurance
contracts other than life or health insurance or annuities, or
surety bonds or surety undertakings or transferring policies,
insurance and reinsurance contracts, or surety bonds or surety
undertakings to a solvent assuming insurer, with court approval.
The rehabilitator has all the powers of the directors, officers,
and managers of the insurer, whose authority is suspended, except
as redelegated by the rehabilitator.  The rehabilitator has full
power to direct and manage, hire and discharge employees, and deal
with the property and business of the insurer.
	(c)  If it appears to the rehabilitator that there has been
criminal or tortious conduct or breach of any contractual or
fiduciary obligation detrimental to the insurer by any officer,
manager, agent, broker, employee, affiliate or other person, the
rehabilitator may pursue all appropriate legal remedies on behalf
of the insurer.
	(d)  The rehabilitator may assert all defenses available to
the insurer as against third persons, including statutes of
limitations, statutes of frauds, and the defense of usury.  A waiver
of any defense by the insurer after a petition under this chapter
has been filed does not bind the rehabilitator.
	(e)  The enumeration, in this section, of the powers and
authority of the rehabilitator may not be construed as a limitation
upon the rehabilitator, nor shall it exclude in any manner the right
to do other acts not specifically enumerated or otherwise provided
for, as may be necessary or appropriate for the accomplishment of or
in aid of the purpose of rehabilitation.

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

Last modified: August 11, 2007