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State Law
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Texas Insurance Code - Chapter 463 Life, Accident, Health, And Hospital Service Insurance Guaranty AssociationLegal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Chapter 463 Life, Accident, Health, And Hospital Service Insurance Guaranty Association This chapter may be cited as the Life, Accident, Health, and Hospital Service Insurance Guaranty Association Act. Added by Acts 2005, 79th Leg., ch. 727, ... The purpose of this chapter is to protect, subject to certain limitations, a person specified by Section 463.201 against failure in the performance of a ... In this chapter: (1) "Association" means the Life, Accident, Health, and Hospital Service Insurance Guaranty Association. (2) "Board" means the board of directors of the ... This chapter shall be liberally construed to implement the purpose of this chapter described by Section 463.002. Section 463.002 shall be used to aid and ... (a) The following persons are not liable, and a cause of action does not arise against any of the following persons, for a good faith ... The commissioner shall adopt reasonable rules as necessary to carry out and supplement this chapter and the purposes of this chapter. Added by Acts 2005, ... (a) The Life, Accident, Health, and Hospital Service Insurance Guaranty Association is a nonprofit legal entity existing to pay benefits and continue coverage as provided ... (a) As a condition of engaging in the business of insurance in this state, an insurer, including a mutual assessment company, a local mutual aid ... (a) The association's powers are exercised through a board of directors consisting of nine individuals appointed by the commissioner as provided by this section. (b) ... To be eligible to serve as a public representative, an individual may not: (1) be an officer, director, or employee of an insurer, insurance agency, ... (a) Board members serve staggered six-year terms, with the terms of three members expiring each odd-numbered year. A member may be reappointed. (b) A board ... A board member may not receive compensation from the association for the member's services but may be reimbursed from the association's assets for expenses incurred ... 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) In this section, "transaction on behalf of an impaired insurer" includes a reinsurance agreement, transaction, merger, purchase, sale, contribution, or exchange of assets, insurance ... (a) The association may: (1) enter into contracts as necessary or proper to carry out this chapter and the purposes of this chapter; (2) sue ... (a) The association shall perform the association's functions under a plan of operation approved by the commissioner. The plan of operation must: (1) establish: (A) ... The association may employ or retain employees or contractors to handle the association's financial transactions and to perform other functions under this chapter. Added by ... (a) The association shall maintain a record of each negotiation or meeting in which the association or the association's representative discusses the association's activities in ... For the purposes of administration and assessment, the association shall maintain: (1) an accident, health, and hospital services insurance account; (2) a life insurance account; ... (a) The plan of operation may provide that, on approval of the board and the commissioner, a power or duty of the association is delegated ... The association is exempt from payment of all fees and all taxes levied by this state or a subdivision of this state, except taxes levied ... On a majority vote, the board: (1) may make recommendations to the commissioner for detecting and preventing insurer insolvencies; and (2) shall notify the commissioner ... (a) The association may appear before a court in this state with jurisdiction over an impaired or insolvent insurer concerning which the association is or ... Not later than the 120th day after the last day of each association fiscal year, the board shall submit to the commissioner: (1) a financial ... (a) On a majority vote, the board may report and make recommendations to the commissioner on any matter germane to: (1) the solvency, liquidation, rehabilitation, ... The receiver or statutory successor of an impaired insurer shall give the board or a representative of the board: (1) access to the insurer's records ... (a) At the conclusion of an insurer insolvency in which the association was obligated to pay a covered claim, the board shall prepare and submit ... (a) The association shall prepare a summary document describing the general purposes and limitations of this chapter and amend the document as necessary to comply ... (a) The association shall assess member insurers, separately for each account under Section 463.105, in the amounts and at the times the board determines necessary ... (a) Assessments are classified as Class A or Class B assessments. (b) Class A assessments are made to pay: (1) the association's administrative costs; (2) ... (a) The board shall determine the amount of a Class A assessment for each account under Section 463.105, considering with respect to member insurers one ... The association may wholly or partly defer an assessment of a member insurer if the association believes payment of the assessment would endanger the ability ... The association may deposit assessments into the Texas Treasury Safekeeping Trust Company in accordance with procedures established by the comptroller. The comptroller shall account to ... The association shall issue to each member insurer that pays a Class B assessment a certificate of contribution, in a form the commissioner prescribes, for ... (a) The board may refund to member insurers the amount by which the association's assets, including any net realized gains and income from investments, exceed ... Money from assessments supplements the marshalling of an impaired insurer's assets to make payments on the insurer's behalf. Added by Acts 2005, 79th Leg., ch. ... On failure of a member insurer to pay an assessment when due, the commissioner may either: (1) suspend or revoke, after notice and hearing, the ... The amount of a Class A assessment paid by a member insurer shall be allowed as a credit on the amount of premium taxes due ... (a) A member insurer is entitled to show as an admitted asset a certificate of contribution in the form the commissioner approves under Section 463.156. ... (a) A member insurer may assign or transfer a credit against premium tax to another member insurer if: (1) an acquisition, merger, or total assumption ... This chapter does not reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment ... (a) This chapter provides coverage for a policy described by Section 463.202 to a person who is: (1) subject to Subsection (b), an owner of ... (a) Except as limited by this chapter, the coverage provided by this chapter to a person specified by Section 463.201 applies with respect to the ... (a) In this section, " Moody's Corporate Bond Yield Average" means the monthly average corporates as published by Moody's Investors Service, Inc., or any successor ... A contractual obligation does not include: (1) death benefits in an amount in excess of $300,000 or a net cash surrender or net cash withdrawal ... This chapter does not provide coverage for a resident with respect to an impaired or insolvent insurer domiciled in another jurisdiction if guaranty protection is ... (a) This section applies only to a member insurer that is an impaired domestic insurer. (b) With the commissioner's approval, the association may: (1) guarantee, ... (a) This section applies only to a member insurer that: (1) is an impaired domestic, foreign, or alien insurer; and (2) is not timely paying ... (a) This section applies only to a member insurer that is an insolvent insurer. (b) The association shall provide money, pledges, guarantees, or other means ... (a) This section applies only when the association is taking an action under Section 463.252(b)(2) or 463.253 with respect to a life or health insurance ... In taking an action under Section 463.252(b)(2) or 463.253 with respect to a policy or contract with a guaranteed minimum interest rate, the association shall ... (a) An alternative policy issued by the association must: (1) be approved by the commissioner; (2) provide coverage of a kind that the association determines ... To carry out the association's duties under this chapter and with the court's approval, the association may: (1) impose a permanent policy or contract lien ... If the association reissues terminated coverage at a premium different from the terminated policy's premium, the premium must: (1) reflect the amount of insurance provided ... After a court enters an order of receivership with respect to an insolvent insurer, a premium due for coverage issued by the insurer is owned ... (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 ... (a) A person receiving a benefit under this chapter, including a payment of or on account of a contractual obligation, continuation of coverage, or provision ... (a) If an assessment has been made under this chapter for the insurer or guaranty fees have been provided for the insurer, an impaired insurer ... (a) An impaired or insolvent insurer may not make a distribution to shareholders until the association has recovered the total amount of valid claims for ... (a) For the purposes of this section, assets attributable to covered policies are the proportion of the assets that the reserves that should have been ... In making an equitable distribution of the ownership rights of an insolvent insurer before the termination of a receivership, the court: (1) shall consider the ... (a) The commissioner shall: (1) notify the insurance officials of all the other states, territories of the United States, and the District of Columbia by ... The commissioner may seek the board's advice and recommendations on a matter affecting the commissioner's duties regarding the financial condition of: (1) a member insurer; ... (a) The board by majority vote may request the commissioner to order an examination of a member insurer that the board in good faith believes ... (a) When an impairment is declared and the amount of the impairment is determined, the commissioner shall serve a demand on the impaired insurer to ... On failure of a member insurer to comply with the plan of operation, the commissioner may suspend or revoke, after notice and hearing, the insurer's ... The commissioner may assume the powers and duties of the association under this chapter with respect to impaired or insolvent insurers if the association does ... The commissioner, as receiver of an impaired insurer, may notify all interested persons of the effect of this chapter. Added by Acts 2005, 79th Leg., ... On request, the commissioner shall provide the association with a statement of the premiums in this state and any other appropriate state for each member ... (a) Not later than the 60th day after the date of a final action of the association or the board, a member insurer may appeal ... Venue for an action against the association under this chapter is in Travis County. Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. ... The association is not required to give an appeal bond in an appeal of a cause of action under this chapter. Added by Acts 2005, ... (a) To permit the receiver or association to properly defend a pending cause of action, a proceeding in which an impaired insurer is a party ... (a) A person may not make, publish, disseminate, circulate, or place before the public, or directly or indirectly cause to be made, published, disseminated, circulated, ... Last modified: August 10, 2007 |