Texas Insurance Code - Section 427.054. Liability
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§ 427.054. LIABILITY. (a) A loan or advance made under
this chapter, including any interest accruing on the loan or
advance, is a legal liability of the insurer or health maintenance
organization, and a liability with respect to the insurer's or
health maintenance organization's financial statement, only to the
extent provided by the terms of the loan or advance agreement.
(b) Notwithstanding Subsection (a), if the loan or advance
agreement provides for a sinking fund out of which the loan or
advance is to be repaid, the loan or advance is a legal liability of
the insurer or health maintenance organization, and a liability
with respect to the insurer's or health maintenance organization's
financial statement, only to the extent of the amounts accumulated
and held in the sinking fund. By agreement of the parties, any
portion of the amounts accumulated in the sinking fund may be
returned to the surplus of the insurer or health maintenance
organization at any time and any amount returned may not be a legal
liability of the insurer or health maintenance organization or a
liability with respect to the insurer's or health maintenance
organization's financial statement.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 426.002 426.003 427.001 427.002 427.051 427.052 427.053 427.054 427.055 441.001 441.002 441.003 441.004 441.005 441.006
Last modified: August 11, 2007
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