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Texas Insurance Code - Not Codified - Section 21A.105. Coordination With Guaranty Associations

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.105. Coordination With Guaranty Associations

Sec. 21A.105. COORDINATION WITH GUARANTY ASSOCIATIONS.  (a)
The receiver shall notify any potentially obligated guaranty
association or the guaranty association's representative
concerning the entry of a rehabilitation order and shall update the
guaranty association or its representative regarding significant
developments that impact efforts to rehabilitate the insurer.  On a
determination by the rehabilitator that rehabilitation efforts may
not be successful, the rehabilitator shall participate in
cooperative efforts with the potentially obligated guaranty
associations.  To facilitate an orderly transition to liquidation,
the rehabilitator shall make available to the guaranty associations
the information necessary to discharge their responsibilities upon
becoming statutorily obligated.  To the extent that information is
available, or as it becomes available, the rehabilitator shall
provide appropriate information to guaranty associations in the
states in which the insurer transacted business.
	(b)  For the purposes of Subsection (a), "appropriate
information" may include the following for lines of business
written by the insurer, whether covered or not covered by guaranty
associations:
	(1)  a general description of the different types of business
written or assumed by the insurer;
	(2)  claim counts and policy counts by state and by line of
business;
	(3)  claim and policy reserves;
	(4)  account values and cash surrender values;
	(5)  policy loans;
	(6)  interest crediting history;
	(7)  premiums and mode of payment;
	(8)  unpaid claims and amounts;
	(9)  sample policies and endorsements;
	(10)  a listing of different locations of claim files;
	(11)  if third-party administrators were used, copies of
executed contracts and a description of the contractual
arrangements;  and
	(12)  information concerning claims in litigation or
dispute, including a listing of claims with assigned defense
counsel for those claims going to trial in the near future after a
possible liquidation date.
	(c)  For the purposes of Subsection (a), "appropriate
information" also includes information concerning states in which
the insurer is or was licensed and periods for which the insurer is
or was licensed and other information reasonably requested by a
guaranty association necessary for the guaranty association to
fulfill its statutory duties.
	(d)  In the case of a property and casualty insurer, the
rehabilitator, in cooperation with the guaranty associations,
shall make all reasonable efforts to prepare the insurer's
electronic policy and claims data so that, upon the entry of an
order of liquidation, the data will be ready for transmission using
the Uniform Data Standards as promulgated by the National
Association of Insurance Commissioners.
	(e)  The list of what appropriate information includes under
Subsections (b) and (c) is not necessarily an exclusive list.  Other
information may be necessary to ensure that an orderly transition
to liquidation occurs, and that information may be appropriately
provided by the receiver.

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

Last modified: August 11, 2007