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Texas Insurance Code - Not Codified - Section 21A.255. Allowance Of Contingent And Unliquidated Claims

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.255. Allowance Of Contingent And Unliquidated Claims

Sec. 21A.255. ALLOWANCE OF CONTINGENT AND UNLIQUIDATED
CLAIMS.  (a) A claim of an insured or third party may be allowed
under Section 21A.253, regardless of the fact that the claim was
contingent or unliquidated, if any contingency is removed in
accordance with Subsection (b) and the value of the claim is
determined.  For purposes of this section, a claim is contingent if:
	(1)  the accident, casualty, disaster, loss, event, or
occurrence insured, reinsured, or bonded or reinsured against
occurred on or before the date fixed under Section 21A.151;  and
	(2)  the act or event triggering the insurer's obligation to
pay has not occurred as of the date fixed under Section 21A.151.
	(b)  Unless the receivership court directs otherwise, a
contingent claim may be allowed if the claimant has presented proof
reasonably satisfactory to the liquidator of the insurer's
obligation to pay or the claim was based on a cause of action
against an insured of the insurer and:
	(1)  it may be reasonably inferred from proof presented upon
the claim that the claimant would be able to obtain a judgment;  and
	(2)  the person has furnished suitable proof, unless the
receivership court for good cause shown otherwise directs, that no
further valid claims can be made against the insurer arising out of
the cause of action other than those already presented.
	(c)  The liquidator may petition the receivership court to
set a date before which all claims under this section are final.  In
addition to the notice requirements of Section 21A.007, the
liquidator shall give notice of the filing of the petition to all
claimants with claims that remain contingent or unliquidated under
this section.

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

Last modified: August 11, 2007