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Texas Insurance Code - Not Codified - Section 21A.202. Recovery From Affiliates

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.202. Recovery From Affiliates

Sec. 21A.202. RECOVERY FROM AFFILIATES.  (a) The receiver
has a right to recover from any affiliate of the insurer any
property of the insurer transferred to or for the benefit of the
affiliate, or the property's value, if the transfer was made within
the two years preceding the initial petition for receivership.
	(b)  A transfer is not recoverable under Subsection (a) if
the affiliate shows that, when the transfer was made:
	(1)  the insurer was solvent;
	(2)  the transfer was lawful;  and
	(3)  neither the insurer nor the affiliate knew or reasonably
should have known that the transfer, under then-applicable
statutory accounting standards, would:
	(A)  place the insurer:
	(i)  in violation of applicable capital or surplus
requirements;
	(ii)  below the applicable minimum risk-based capital level;
or
	(iii)  in violation of writing ratios under Article 1.32 or
analogous requirements under Section 843.406;  or
	(B)  cause the insurer's filed financial statements not to
present fairly the capital and surplus of the insurer.

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

Last modified: August 11, 2007