Sec. 4053.152. GUARANTY FUND REIMBURSEMENT. (a) If a court finds by a final nonappealable judgment that a violation of this chapter by a managing general agent contributes materially to the insolvency of an insurer under which the agent held an appointment, the agent shall reimburse the appropriate guaranty fund for money paid to cover losses of the insolvent insurer in an amount equal to all payments made from that guaranty fund in excess of:
(1) gross earned premiums and investment income earned on those premiums; and
(2) loss reserves for that business.
(b) The reimbursement made under this section shall be used for losses, loss adjustments, and administrative expenses on business placed by the managing general agent.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Section: Previous 4053.052 4053.053 4053.054 4053.055 4053.101 4053.102 4053.103 4053.104 4053.105 4053.106 4053.107 4053.108 4053.109 4053.110 4053.151Last modified: September 28, 2016