Texas Labor Code - Section 407A.458. Effect Of Insolvency Of Group
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§ 407A.458. EFFECT OF INSOLVENCY OF GROUP. (a) On
determining that a group has become insolvent, the commissioner
shall secure release of the surety bond or security deposit
required under Section 407A.053 and shall promptly estimate:
(1) the amount of additional funds needed to
supplement the bond or security deposit; and
(2) the assets of the insolvent group available to pay
all incurred compensation liabilities.
(b) If the bond or security deposit and the available assets
of the insolvent group are insufficient to cover all of the group's
incurred compensation liabilities, the commissioner shall direct
the insolvent group to immediately assess its members to cover all
incurred liabilities under a schedule approved by the commissioner.
(c) If the assessments under Subsection (b) will be
insufficient to cover the incurred liabilities, the commissioner
shall estimate the additional funds necessary to cover the incurred
liabilities for benefit compensation and related administration
expenses for the insolvent group. On receipt of the commissioner's
estimate, the board shall provide from the trust fund the
additional funds needed for benefit compensation and related
administrative expenses for the insolvent group.
(d) Disbursements from the trust fund under Subsection (c)
shall be replenished:
(1) if within the 10-year funding period of the trust
fund, by adjusting the next year's schedule of assessments from
groups; or
(2) if beyond the initial 10-year funding period, by
assessment of all groups.
(e) If, after application of Subsections (b)-(d), the
amount available in the trust fund is still insufficient, the board
shall assess all groups for the remaining deficiency.
(f) The commissioner may exempt a group from assessment
under this section on a determination that the payment of the
assessment would render the group insolvent.
(g) The commissioner may, on a finding of insolvency,
commence a delinquency proceeding for the purpose of liquidating,
rehabilitating, reorganizing, or conserving a group. Such a group
shall be considered an insurer for purposes of Article 21.28,
Insurance Code, and an insurance company for purposes of 11 U.S.C.
Section 109. The conservator, receiver, or other statutory
successor of a group shall coordinate with the board in the
furtherance of the purposes of this subchapter.
Added by Acts 2005, 79th Leg., ch. 1055, § 1, eff. Sept. 1, 2005.
Section: 407A.451 407A.452 407A.453 407A.454 407A.455 407A.456 407A.457 407A.458 407A.459 407A.460 407A.461 407A.462 407A.463 407A.464 407A.465
Last modified: August 10, 2007
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