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Texas Insurance Code - Chapter 462 Texas Property And Casualty Insurance Guaranty AssociationLegal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Chapter 462 Texas Property And Casualty Insurance Guaranty Association Sponsored LinksThis chapter may be cited as the Texas Property and Casualty Insurance Guaranty Act. Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. ... The purposes of this chapter are to: (1) provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay ... This chapter shall be liberally construed to implement the purposes of this chapter described by Section 462.002, which shall be used to aid and guide ... In this chapter: (1) "Affiliate" means a person who, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common ... (a) For purposes of this chapter, control is the power to direct, or cause the direction of, the management and policies of a person, other ... (a) Except as provided by Subsection (b) and subject to Subsection (c), in this chapter, "net direct written premiums" means direct premiums written in this ... (a) Except as provided by Subsection (b), this chapter applies to each kind of direct insurance. (b) Except as provided by Subchapter F, this chapter ... (a) This chapter applies to insurance written through the Texas Mutual Insurance Company only as provided by this section. (b) This chapter applies to the ... (a) Notwithstanding any other provision of this chapter, this chapter applies to each insurance policy issued under Article 5.76 or 5.76-2, as those articles existed ... (a) Except as provided by Subsection (b), if this chapter conflicts with another statute relating to the association, this chapter controls. (b) This section does ... (a) Liability does not exist and a cause of action does not arise against any of the following persons for any good faith act or ... Liability does not exist and a cause of action does not arise against any of the following persons for a statement made in good faith ... (a) Liability does not exist and a cause of action does not arise against any of the following persons for an act or omission in ... The commissioner shall adopt reasonable rules as necessary to implement and supplement this chapter and this chapter's purposes. Added by Acts 2005, 79th Leg., ch. ... (a) The commissioner shall notify the association of the existence of an impaired insurer not later than the third day after the date the commissioner ... (a) The commissioner shall suspend or revoke, after notice and hearing, the certificate of authority to engage in the business of insurance in this state ... (a) A final action or order of the commissioner under this chapter is subject to judicial review by a court. (b) Venue in a suit ... (a) The Texas Property and Casualty Insurance Guaranty Association is a nonprofit unincorporated legal entity. (b) The association is composed of all member insurers. A ... (a) The association's powers are exercised through a board of directors consisting of nine individuals. (b) Member insurers shall select five insurance industry board members, ... A board member who is a public representative may not be: (1) an officer, director, or employee of an insurer, insurance agency, agent, broker, adjuster, ... To be eligible to serve as an insurance industry board member, an individual must be a full-time employee of a member insurer. Added by Acts ... (a) A board member serves a term established by the plan of operation. (b) The remaining board members, by majority vote, shall fill a vacancy ... A board member may be reimbursed from the assets of the association for expenses the board member incurs as a board member. Added by Acts ... Each board member shall file with the Texas Ethics Commission a financial statement as provided by Subchapter B, Chapter 572, Government Code. Added by Acts ... (a) A director of the association or a member insurer or other entity represented by the director may not receive money or another valuable thing ... (a) Notwithstanding Chapter 551, Government Code, the board may hold an open meeting by telephone conference call if immediate action is required and convening of ... (a) The association may: (1) employ or retain persons as necessary to handle claims and perform other duties of the association; (2) borrow money necessary ... In performing the association's statutory obligations under this chapter, the association is not considered: (1) to be engaged in the business of insurance; (2) to ... (a) The association shall perform the association's functions under a plan of operation necessary or suitable to ensure the fair, reasonable, and equitable administration of ... (a) The commissioner may require that the association notify an impaired insurer's insureds and any other interested parties of: (1) the designation of impairment; and ... For purposes of administration and assessment, the association is divided into: (1) the workers' compensation insurance account; (2) the automobile insurance account; and (3) the ... (a) The association may use money in the administrative account to pay administrative costs and other general expenses of the association. (b) The association may ... Not later than April 30 of each year, the association shall submit an audited financial statement for the preceding calendar year to the state auditor ... The board may deposit the money the association collects into the Texas Treasury Safekeeping Trust Company in accordance with procedures established by the comptroller. The ... (a) Except as provided by Subsection (b), the plan of operation may provide that, on approval of the board and the commissioner, the association may ... The association is exempt from payment of all fees and of all taxes levied by this state or a subdivision of this state, except taxes ... The receiver or statutory successor of an impaired insurer covered by this chapter shall give the board or the board's representative: (1) access to the ... On the conclusion of the insolvency of a domestic insurer with respect to which the association was obligated to pay covered claims, the board may: ... The receiver shall periodically submit a list of claims to the association or similar organization in another state. Added by Acts 2005, 79th Leg., ch. ... (a) The association shall assess member insurers the amount necessary to pay: (1) the association's obligations under Section 462.302 and the expenses of handling covered ... (a) The total assessment of a member insurer in a year may not exceed an amount equal to two percent of the insurer's net direct ... The association may refund to the member insurers in proportion to the contribution of each member insurer to the association the amount by which the ... The association shall notify a member insurer of an assessment not later than the 30th day before the date the assessment is due. Added by ... (a) The association may defer wholly or partly an assessment of a member insurer that would cause the insurer's financial statement to show amounts of ... (a) The amounts provided under assessments made under this chapter supplement the marshalling of assets by the receiver under Chapter 442 to make payments on ... (a) An insurer is entitled to a credit against the insurer's premium tax under Chapter 221 for the total amount of an assessment paid by ... Money advanced by the association under this chapter is considered a special fund loan to the impaired insurer for payment of covered claims and does ... (a) If the commissioner determines that an insurer has become an impaired insurer, the association shall promptly estimate the amount of additional money, by lines ... If the board determines that additional money is needed in any of the three accounts described by Section 462.105, the board shall make assessments as ... (a) The association, in determining the proportionate amount to be paid by individual insurers under an assessment under Section 462.160, shall consider the lines of ... (a) Except as otherwise provided by this section, assessments under Section 462.160 during a calendar year may not exceed two percent of each insurer's net ... An insurer shall pay the amount of an assessment under Section 462.160 or 462.162(b) to the association not later than the 30th day after the ... (a) On receipt from a member insurer of payment of an assessment or partial assessment under Section 462.160 or 462.162(b), the association shall provide the ... (a) The association, with respect to an impaired insurer, shall adopt accounting procedures that reflect the use of all money and shall make a final ... (a) If the association determines that money in the account described by Section 462.164(b) for a line of business exceeds the amount reasonably necessary for ... (a) The commissioner may collect an assessment on behalf of the association through a suit brought for that purpose. (b) Venue for a suit under ... An impaired insurer is exempt from assessment from the date the insurer is designated an impaired insurer until the date the commissioner determines that the ... A claim is a covered claim if: (1) the claim is an unpaid claim; (2) the claim is made under an insurance policy to which ... (a) A claim for unearned premiums is a covered claim. A covered claim for unearned premiums may not exceed $25,000. (b) With respect to a ... An administration expense incurred in processing or paying a claim against a receivership or conservatorship estate is a covered claim if the impaired insurer has ... A person who is an affiliate of an impaired insurer may not be a claimant of the insurer. Added by Acts 2005, 79th Leg., ch. ... A corporation or other entity that is not an individual is considered to be a resident of the state in which the entity's principal place ... An amount sought as a return of premium under a retrospective rating plan is not a covered claim. Added by Acts 2005, 79th Leg., ch. ... (a) Any amount due any reinsurer, insurer, self-insurer, insurance pool, or underwriting association, as a subrogation recovery, reinsurance recovery, contribution, or indemnification, or otherwise, is ... A supplementary payment obligation, including an adjustment fee or expense, attorney's fee or expense, court cost, interest or penalty, or interest or bond premium, incurred ... Prejudgment or postjudgment interest that accrues after an insurer is determined to be an impaired insurer is not a covered claim. Added by Acts 2005, ... A claim against the insured, insurer, guaranty association, receiver, special deputy receiver, or commissioner for recovery of punitive, exemplary, extracontractual, or bad-faith damages awarded in ... (a) Notwithstanding any other provision of this chapter and except as provided by Subsection (b), a claim filed with the association on a date that ... (a) The association is not liable to pay a first-party claim of an insured whose net worth on December 31 of the year preceding the ... (a) Except as provided by Subsection (b) and Section 462.252, an individual covered claim may not exceed $300,000. (b) The association shall pay the full ... Notwithstanding any other provision of this chapter, the association's liability for shareholder derivative actions or other claims for economic loss incurred by a claimant in ... (a) Any person who has a claim under an insurance policy, other than an impaired insurer's policy, and whose claim arises from the same facts, ... (a) Except as provided by Subsection (b), an amount payable as a covered claim under this chapter is reduced by the full applicable limits of ... To the extent that the association's obligation is reduced by the application of Sections 462.251 and 462.252, the liability of the person insured by the ... (a) Except as provided by Subsections (b) and (c), a person who has a claim that may be recovered from more than one insurance guaranty ... (a) Notwithstanding Sections 462.252(c) and 462.254(e), if a claimant is seeking recovery of insurance policy benefits that, had the impaired insurer not been insolvent, would ... (a) The association shall investigate and adjust, compromise, settle, and pay covered claims to the extent of the association's obligation and deny all other claims. ... (a) The association shall pay covered claims that exist before the designation of impairment or that arise: (1) not later than the 30th day after ... (a) The association is not bound by: (1) a judgment taken before the designation of impairment in which an insured under a liability insurance policy ... (a) The association shall handle claims through the association's employees or through one or more insurers or other persons designated, subject to the approval of ... The association is not liable to an insured or liability claimant for the association's failure to settle a liability claim within the limits of a ... (a) The association shall discharge an impaired insurer's policy obligations, including the duty to defend insureds under a liability insurance policy, to the extent that ... (a) A person recovering under this chapter assigns to the association the person's rights: (1) under the insurance policy; and (2) to recover for the ... (a) The association is entitled to recover the amount of a covered claim and the cost of defense paid under this chapter from the person ... (a) To permit the association to properly defend a pending cause of action, a proceeding in which an impaired insurer is a party or is ... (a) The settlement of a covered claim by the association or a similar organization in another state binds the receiver or statutory successor of an ... The association shall periodically file with the receiver of an impaired insurer a statement of covered claims paid by the association and an estimate of ... (a) Except as provided by Subsection (b), an impaired insurer placed in receivership for which money has been advanced under this chapter may not be ... Last modified: August 11, 2007 |