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Texas Insurance Code - Not Codified - Section 21A.402. Domiciliary Receivers Appointed In Other States

Legal Research Home > Texas Laws > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.402. Domiciliary Receivers Appointed In Other States

Sec. 21A.402. DOMICILIARY RECEIVERS APPOINTED IN OTHER
STATES.  (a) A domiciliary receiver appointed in another state is
vested by operation of law with title to, and may summarily take
possession of, all property and records of the insurer in this
state.  Notwithstanding any other provision of law regarding
special deposits, special deposits held in this state shall be,
upon the entry of an order of liquidation with a finding of
insolvency, distributed to the guaranty associations in this state
as early access payments subject to Section 21A.303, in relation to
the lines of business for which the special deposits were made.  The
holder of any special deposit shall account to the domiciliary
receiver for all distributions from the special deposit at the time
of the distribution.  The statutory provisions of another state and
all orders entered by courts of competent jurisdiction in relation
to the appointment of a domiciliary receiver of an insurer and any
related proceedings in another state must be given full faith and
credit in this state.  For purposes of this section, "another state"
means any state other than this state.  This state shall treat any
other state than this state as a reciprocal state.
	(b)  Upon appointment of a domiciliary receiver in another
state, the commissioner shall, unless otherwise agreed by the
receiver, immediately transfer title to and possession of all
property of the insurer under the commissioner's control, including
all statutory general or special deposits, to the receiver.
	(c)  Except as provided in Subsection (a), the domiciliary
receiver shall handle special deposits and special deposit claims
in accordance with federal law and the statutes pursuant to which
the special deposits are required.  All amounts in excess of the
estimated amount necessary to administer the special deposit and
pay the unpaid special deposit claims are deemed general assets of
the estate.  If there is a deficiency in any special deposit so that
the claims secured by the special deposit are not fully discharged
from the deposit, the claimants may share in the general assets of
the insurer to the extent of the deficiency at the same priority as
other claimants in their class of priority under Section 21A.301,
but the sharing must be deferred until the other claimants of their
class have been paid percentages of their claims equal to the
percentage paid from the special deposit.  The intent of this
provision is to equalize to this extent the advantage gained by the
security provided by the special deposits.

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

Last modified: August 11, 2007