Texas Insurance Code - Section 442.108. Disposal Of Property; Settling Of Claims
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Texas Lawyer > Insurance Code > Texas Insurance Code - Section 442.108. Disposal Of Property; Settling Of Claims
§ 442.108. DISPOSAL OF PROPERTY; SETTLING OF
CLAIMS. (a) Except as provided by Subsection (b), the receiver
may, subject to the approval of the court:
(1) sell or otherwise dispose of all or part of the
property of an insurer against whom a delinquency proceeding has
been brought; and
(2) sell or compound all doubtful or uncollectible
debts, or claims owed by or to the insurer, including claims based
on an assessment levied against a member of a mutual insurer, a
reciprocal or interinsurance exchange, or a Lloyd's plan.
(b) Without obtaining the approval of the court, the
receiver may compromise or compound a debt or claim described by
Subsection (a)(2) or sell an item of the insurer's property on terms
the receiver considers to be in the best interest of the insurer if
the amount of the debt or claim or the value of the item of property
does not exceed $10,000, excluding interest.
(c) The receiver may, subject to the approval of the court,
sell, agree to sell, or offer to sell any assets of the insurer to
creditors of the insurer who seek to participate in the purchase of
the assets, to be paid for wholly or partly out of dividends payable
to those creditors. On application of the receiver, the court may
designate representatives to act for those creditors in purchasing,
holding, or otherwise managing those assets, and the receiver may,
subject to the approval of the court, advance the expenses of those
representatives against the security of the claims of those
creditors.
(d) The receiver may, subject to the approval of the court
and the commissioner, as required by this code, sell or otherwise
dispose of the charter or certificate of authority of the insurer
separately from the outstanding liabilities of the insurer.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 442.101 442.102 442.103 442.104 442.105 442.106 442.107 442.108 442.109 442.110 442.111 442.112 442.113 442.114 442.115
Last modified: August 11, 2007
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