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Texas Insurance Code - Not Codified - Section 21A.155. Notice To Creditors And Others

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.155. Notice To Creditors And Others

Sec. 21A.155. NOTICE TO CREDITORS AND OTHERS.  (a) Unless
the receivership court otherwise directs, the liquidator shall give
or cause to be given notice of the liquidation order as soon as
possible:
	(1)  by first class mail or electronic communication as
permitted by the receivership court to:
	(A)  any guaranty association that is or may become obligated
as a result of the liquidation and any national association of
guaranty associations;
	(B)  all the insurer's agents, brokers, or producers of
record with current appointments or current licenses to represent
the insurer and all other agents, brokers, or producers as the
liquidator deems appropriate at their last known address;  and
	(C)  all persons or entities known or reasonably expected to
have claims against the insurer, at their last known address as
indicated by the records of the insurer, and all state and federal
agencies with an interest in the proceeding;  and
	(2)  by publication in a newspaper of general circulation in
the county in which the insurer has its principal place of business
and in any other locations as the liquidator deems appropriate.
	(b)  The notice of the entry of an order of liquidation must
contain or provide directions for obtaining the following
information:
	(1)  a statement that the insurer has been placed in
liquidation;
	(2)  a statement that certain acts are stayed under Section
21A.008 and describe any additional injunctive relief ordered by
the receivership court;
	(3)  a statement whether, and to what extent, the insurer's
policies continue in effect;
	(4)  to the extent applicable, a statement that coverage by
state guaranty associations may be available for all or part of
policy benefits in accordance with applicable state guaranty laws;
	(5)  a statement of the deadline for filing claims, if
established, and the requirements for filing a proof of claim
pursuant to Section 21A.251 on or before that date;
	(6)  a statement of the date, time, and location of any
initial status hearing scheduled at the time the notice is sent;
	(7)  a description of the process for obtaining notice of
matters before the receivership court;  and
	(8)  any other information the liquidator or the
receivership court deems appropriate.
	(c)  If notice is given in accordance with this section, the
distribution of property of the insurer under this chapter is
conclusive with respect to all claimants, whether or not they
received notice.
	(d)  Notwithstanding the other provisions of this section,
the liquidator has no duty to locate any persons or entities if no
address is found in the records of the insurer or if mailings are
returned to the liquidator because of inability to deliver at the
address shown in the insurer's books and records.  In these
circumstances the notice by publication as required by this chapter
or actual notice received is sufficient notice.  Written
certification by the liquidator or other knowledgeable person
acting for the liquidator that the notices were deposited in the
United States mail, postage prepaid, or that the notices have been
electronically transmitted is prima facie evidence of mailing and
receipt.  All claimants shall keep the liquidator informed of any
changes of address.
	(e)  Notwithstanding Subsection (a)(1)(C), upon application
of the liquidator, the receivership court may:
	(1)  find that notice by publication as required in this
section is sufficient notice to those persons holding an occurrence
policy that expired more than four years prior to the entry of the
order of liquidation and under which there are no pending claims;
or
	(2)  order other notice to persons described by Subdivision
(1) as it deems appropriate.
	(f)  The liquidator shall notify the Texas Workers'
Compensation Commission upon the entry of the liquidation order if
the insurer has issued workers' compensation coverage in effect in
this state.  Upon request of the liquidator, the Texas Workers'
Compensation Commission shall submit a list of active cases pending
before the commission that relate to workers' compensation coverage
issued by the insurer.

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

Last modified: August 11, 2007