Texas Insurance Code - Not Codified - Section 21A.151. Liquidation Orders
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Texas Laws > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.151. Liquidation Orders
Section: 21A.058 21A.059 21A.101 21A.102 21A.103 21A.104 21A.105 21A.151 21A.152 21A.153 21A.154 21A.155 21A.156 21A.201 21A.202
Sec. 21A.151. LIQUIDATION ORDERS. (a) An order to liquidate
the business of an insurer shall appoint the commissioner and any
successor in office as the liquidator and shall direct the
liquidator to take possession of the property of the insurer and to
administer it subject to this chapter. The liquidator is entitled
to request the receivership court to appoint a single judge to
supervise the liquidation and to hear any cases or controversies
arising out of or related to the liquidation. Liquidation
proceedings are exempt from any dormancy or similar program
maintained by the receivership court for the early closure of civil
actions. As of the entry of the final order of liquidation, the
liquidator is vested by operation of law with the title to all of
the property, contracts, rights of action, and books and records of
the insurer ordered liquidated, wherever located. The filing or
recording of the order with the clerk of the court and the recorder
of deeds of the county in which the insurer's principal office or
place of business is located or, in the case of real estate, the
county where the property is located, imparts the same notice as a
deed, bill of sale, or other evidence of title filed or recorded
with that recorder of deeds would impart.
(b) Upon issuance of the order of liquidation, the rights
and liabilities of the insurer and of its creditors, policyholders,
shareholders, members, and all other persons interested in its
estate become fixed as of the date of entry of the order of
liquidation, except as provided by Sections 21A.152 and 21A.255,
unless otherwise fixed by the court.
(c) An order to liquidate the business of an alien insurer
in this state must be in the same terms and has the same legal effect
as an order to liquidate a domestic insurer.
(d) At the time of petitioning for an order of liquidation,
or at any time after petitioning, the commissioner may petition the
receivership court for a judicial declaration of insolvency. After
providing the notice and hearing as it deems proper, the
receivership court may make the declaration of insolvency.
(e) In the event an order of liquidation is set aside on
appeal, the company may not be released from delinquency
proceedings except in accordance with Section 21A.351.
Added by Acts 2005, 79th Leg., ch. 995, Sec. 1, eff. Sept. 1, 2005.
Last modified: August 11, 2007