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Texas Insurance Code - Section 442.352. Notice Of Claim To Reinsurer; Interposition Of Defense

Legal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Section 442.352. Notice Of Claim To Reinsurer; Interposition Of Defense

§ 442.352. NOTICE OF CLAIM TO REINSURER;  INTERPOSITION OF 
DEFENSE.  (a) Within a reasonable time after a claim against the 
receiver under an insurance policy covered by reinsurance is filed 
in the delinquency proceeding, the receiver shall give written 
notice of the pendency of the claim to each affected reinsurer.
	(b)  While the claim is pending, an affected reinsurer may, 
at the reinsurer's expense, investigate the claim and interpose in 
the proceeding in which the claim is to be adjusted any defense the 
reinsurer considers available to the delinquent insurer or the 
receiver.
	(c)  Subject to court approval, the expense incurred by an 
assuming insurer under Subsection (b) is chargeable against the 
delinquent insurer as part of the expense of liquidation to the 
extent of a proportionate share of any benefit that may accrue to 
the delinquent insurer solely as a result of the defense undertaken 
by the assuming insurer.  If two or more assuming insurers are 
involved in the same claim and a majority in interest elect to 
interpose a defense to the claim, the expense shall be apportioned 
in accordance with the terms of the reinsurance agreement as if the 
expense had been incurred by the ceding insurer.

Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.           

Last modified: August 10, 2007