Texas Insurance Code - Section 463.260. Limits On And Termination Of Association Obligation
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§ 463.260. LIMITS ON AND TERMINATION OF ASSOCIATION
OBLIGATION. (a) The association is not liable for benefits that
exceed the contractual obligations for which the insurer is liable
or would have been liable if not impaired or insolvent.
(b) The association's obligations with respect to coverage
under a policy of an impaired or insolvent insurer or under a
reissued or alternative policy terminate on the date the coverage
or policy is replaced by another similar policy by the
policyholder, the insured, or the association.
(c) If a premium is not paid before the 32nd day after the
date the premium is due under a guaranteed, assumed, alternative,
or reissued policy or contract or substitute coverage, the
association's obligations under the policy, contract, or coverage
terminate, except with respect to a claim incurred or any net cash
surrender value due as provided by this chapter.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 463.253 463.254 463.255 463.256 463.257 463.258 463.259 463.260 463.261 463.301 463.302 463.303 463.304 463.351 463.352
Last modified: August 10, 2007
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