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Texas Insurance Code - Not Codified - Section 21A.104. Termination Of Rehabilitation

Legal Research Home > Texas Laws > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.104. Termination Of Rehabilitation

Sec. 21A.104. TERMINATION OF REHABILITATION.  (a) When the
rehabilitator believes further attempts to rehabilitate an insurer
would substantially increase the risk of loss to creditors,
policyholders, or the public or would be futile, the rehabilitator
may move for an order of liquidation.  In accordance with Section
21A.105, the rehabilitator or the rehabilitator's designated
representative shall coordinate with the guaranty associations
that may become liable as a result of the liquidation and any
national association of guaranty associations to plan for
transition to liquidation.
	(b)  Because the protection of the interests of insureds,
claimants, and the public requires the timely performance of all
insurance policy obligations, if the payment of policy obligations
is suspended in substantial part for a period of six months at any
time after the appointment of the rehabilitator and the
rehabilitator has not filed an application for approval of a plan
under Section 21A.103, the rehabilitator shall petition the
receivership court for an order of liquidation.
	(c)  The rehabilitator or the directors of the insurer may at
any time petition the receivership court for, or the receivership
court on its own motion may enter, an order terminating
rehabilitation of an insurer.  Subject to the provisions of Section
21A.351, if the receivership court finds that rehabilitation has
been accomplished and that grounds for rehabilitation under Section
21A.057 no longer exist, it shall order that the insurer be restored
to title and possession of its property and the control of the
business.

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

Last modified: August 11, 2007