Texas Insurance Code Title 4, Chapter 443 - Insurer Receivership Act

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 443.001 - Construction And Purpose
  (a) This chapter may be cited as the Insurer Receivership Act. (b) This chapter may not be interpreted to limit the powers granted the commissioner...
• Texas Section 443.002 - Conflicts Of Law
  This chapter and the state law governing insurance guaranty associations constitute this state's insurer receivership laws and shall be construed together in a manner that...
• Texas Section 443.003 - Covered Persons
  The provisions of this chapter apply to all: (1) insurers who are doing or have done an insurance business in this state and against whom...
• Texas Section 443.004 - Definitions
  (a) For the purposes of this chapter: (1) "Affiliate," "control," and "subsidiary" have the meanings assigned by Chapter 823. (2) "Alien insurer" means an insurer...
• Texas Section 443.005 - Jurisdiction And Venue
  (a) Except as authorized by Section 203(e)(3), Pub. L. No. 111-203, a delinquency proceeding may not be commenced under this chapter by a person other...
• Texas Section 443.006 - Exemption From Fees
  The receiver may not be required to pay any filing, recording, transcript, or authenticating fee to any public officer in this state. Added by Acts...
• Texas Section 443.007 - Notice, Hearing, And Appeal On Matters Submitted By Receiver For Receivership Court Approval
  (a) Upon written request to the receiver, a person must be placed on the service list to receive notice of matters filed by the receiver....
• Texas Section 443.008 - Injunctions And Orders
  (a) The receivership court may issue any order, process, or judgment, including stays, injunctions, or other orders, as necessary or appropriate to carry out the...
• Texas Section 443.009 - Statutes Of Limitations
  (a) If applicable law, an order, or an agreement fixes a period within which the insurer may commence an action, and this period has not...
• Texas Section 443.010 - Cooperation Of Officers, Owners, And Employees
  (a) Any present or former officer, manager, director, trustee, owner, employee, or agent of any insurer, or any other persons with authority over or in...
• Texas Section 443.011 - Actions By And Against Receiver
  (a) An allegation by the receiver of improper or fraudulent conduct against any person may not be the basis of a defense to the enforcement...
• Texas Section 443.012 - Unrecorded Obligations And Defenses Of Affiliates
  (a) In any proceeding or claim by the receiver, an affiliate, controlled or controlling person, or present or former officer, manager, director, trustee, or shareholder...
• Texas Section 443.013 - Executory Contracts And Unexpired Leases
  (a) The receiver may assume or reject any executory contract or unexpired lease of the insurer. (b) Neither the filing of a petition commencing delinquency...
• Texas Section 443.0135 - Contracts For Special Deputies
  (a) Except as provided by Subsection (c), the receiver shall use a competitive bidding process in the selection of any special deputies appointed under Section...
• Texas Section 443.014 - Immunity And Indemnification Of Receiver And Assistants
  (a) For the purposes of this section, the persons entitled to immunity and indemnification and those entitled to immunity only, as applicable, are: (1) all...
• Texas Section 443.015 - Approval And Payment Of Expenses
  (a) The receiver may pay any expenses under contracts, leases, employment agreements, or other arrangements entered into by the insurer prior to receivership, as the...
• Texas Section 443.016 - Financial Reporting
  (a) Not later than the 120th day after the date of entry of an order of receivership by the receivership court, and at least quarterly...

SUBCHAPTER B PROCEEDINGS

• Texas Section 443.017 - Records
  (a) Upon entry of an order of rehabilitation or liquidation, the receiver is vested with title to all of the books, documents, papers, policy information,...
• Texas Section 443.051 - Receivership Court's Seizure Order
  (a) The commissioner may file in a district court of Travis County a petition with respect to an insurer domiciled in this state, an unauthorized...
• Texas Section 443.052 - Commencement Of Formal Delinquency Proceeding
  (a) Except as authorized by Section 203(e)(3), Pub. L. No. 111-203, any formal delinquency proceeding against a person shall be commenced by filing a petition...
• Texas Section 443.053 - Return Of Summons And Summary Hearing
  (a) The receivership court shall hold a summary hearing at the time and date for the return of summons on a petition to commence a...
• Texas Section 443.054 - Proceedings For Expedited Trial: Continuances, Discovery, Evidence
  (a) The receivership court shall proceed to hear the case on the petition to commence a formal delinquency proceeding at the time and date set...
• Texas Section 443.055 - Decision And Appeals
  (a) The receivership court shall enter judgment on the petition to commence formal delinquency proceedings not later than the 15th day after the date of...
• Texas Section 443.056 - Confidentiality
  (a) The commissioner, rehabilitator, or liquidator may share documents, materials, or other information in the possession, custody, or control of the department without regard to...
• Texas Section 443.057 - Grounds For Conservation, Rehabilitation, Or Liquidation
  A petition with respect to an insurer domiciled in this state or an unauthorized insurer for an order of rehabilitation or liquidation may be filed...
• Texas Section 443.058 - Entry Of Order
  If any of the grounds provided in Section 443.057 are established, the receivership court shall grant the petition and issue the order of rehabilitation or...

SUBCHAPTER C REHABILITATION

• Texas Section 443.059 - Effect Of Petition Or Order On Contract Or Lease
  Neither the filing of a petition under this chapter nor the entry of any order of seizure, rehabilitation, or liquidation constitutes a breach or an...
• Texas Section 443.101 - Rehabilitation Orders
  (a) An order to rehabilitate the business of an insurer must appoint the commissioner and the commissioner's successors in office as the rehabilitator and must...
• Texas Section 443.102 - Powers And Duties Of Rehabilitator
  (a) The rehabilitator may appoint one or more special deputies. A special deputy serves at the pleasure of the rehabilitator and has all the powers...
• Texas Section 443.103 - Rehabilitation Plans
  (a) The rehabilitator shall prepare and file a plan to effect rehabilitation with the receivership court not later than the first anniversary of the entry...
• Texas Section 443.104 - Termination Of Rehabilitation
  (a) When the rehabilitator believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public or...

SUBCHAPTER D LIQUIDATION

• Texas Section 443.105 - Coordination With Guaranty Associations
  (a) The receiver shall notify any potentially obligated guaranty association or the guaranty association's representative concerning the entry of a rehabilitation order and shall update...
• Texas Section 443.151 - Liquidation Orders
  (a) An order to liquidate the business of an insurer shall appoint the commissioner and any successor in office as the liquidator and shall direct...
• Texas Section 443.152 - Continuance Of Coverage
  (a) Notwithstanding any policy or contract language or any other statute, all reinsurance contracts by which the insurer has assumed the insurance obligations of another...
• Texas Section 443.153 - Sale Or Dissolution Of Insurer's Corporate Entity
  (a) Notwithstanding the entry of a liquidation order, the liquidator may apply for an order to sell or dissolve the corporate entity or charter of...
• Texas Section 443.154 - Powers Of Liquidator
  (a) The liquidator may appoint a special deputy or deputies to act for the liquidator under this chapter and employ or contract with legal counsel,...
• Texas Section 443.155 - Notice To Creditors And Others
  (a) Unless the receivership court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible:...

SUBCHAPTER E ASSET RECOVERY

• Texas Section 443.156 - Duties Of Agents
  (a) Every person who represented the insurer as an agent and receives notice in the form prescribed in Section 443.155 that the insurer is the...
• Texas Section 443.201 - Turnover Of Assets
  (a) If the receiver determines that funds or property in the possession of another person are rightfully the property of the estate, the receiver shall...
• Texas Section 443.202 - Recovery From Affiliates
  (a) The receiver has a right to recover from any affiliate of the insurer any property of the insurer transferred to or for the benefit...
• Texas Section 443.203 - Unauthorized Post-petition Transfers
  (a) Except as provided by this section, the receiver may avoid any transfer of an interest of the insurer in property or any obligation incurred...
• Texas Section 443.204 - Voidable Preferences And Liens
  (a) A "preference" is a transfer of any interest in property of an insurer that: (1) is made to or for the benefit of a...
• Texas Section 443.205 - Fraudulent Transfers And Obligations
  (a) The receiver may avoid any transfer of an interest of the insurer in property, any reinsurance transaction, or any obligation incurred by an insurer...
• Texas Section 443.206 - Receiver As Lien Creditor
  (a) The receiver may avoid any transfer of or lien upon the property of, or obligation incurred by, an insurer that the insurer or a...
• Texas Section 443.207 - Liability Of Transferee
  (a) Except as otherwise provided in this section, to the extent that the receiver obtains an order under Section 443.201 or avoids a transfer under...
• Texas Section 443.208 - Claims Of Holders Of Void Or Voidable Rights
  (a) A claim of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance voidable under this chapter may not...
• Texas Section 443.209 - Setoffs
  (a) All mutual debts or mutual credits, whether arising out of one or more contracts between the insurer and another person in connection with any...
• Texas Section 443.210 - Assessments
  (a) As soon as practicable, but not later than the fourth anniversary of the date of an order of receivership of an insurer issuing assessable...
• Texas Section 443.211 - Reinsurer's Liability
  (a) If the receiver has claims under policies covered by reinsurance, the liability of the reinsurer to the receiver under the policies reinsured may not...
• Texas Section 443.212 - Recovery Of Premiums Owed
  (a) An insured shall pay, either directly to the receiver or to any agent that has paid or is obligated to pay the receiver on...

SUBCHAPTER F CLAIMS

• Texas Section 443.213 - Administration Of Deductible Agreements And Policyholder Collateral
  (a) Any collateral held to secure the obligations of a policyholder under a deductible agreement with an insurer subject to a delinquency proceeding under this...
• Texas Section 443.251 - Filing Of Claims
  (a) Except as provided by this subsection, proof of all claims must be filed with the liquidator in the form required by Section 443.252 on...
• Texas Section 443.252 - Proof Of Claim
  (a) Proof of claim consists of a statement signed by the claimant or on behalf of the claimant that includes all of the following, as...
• Texas Section 443.253 - Allowance Of Claims
  (a) Except as provided in Subsections (i) and (l), the liquidator shall review all claims duly filed in the liquidation proceeding and shall further investigate...
• Texas Section 443.254 - Claims Under Occurrence Policies, Surety Bonds, And Surety Undertakings
  (a) Subject to the provisions of Section 443.253, any insured has the right to file a claim for the protection afforded under the insured's policy,...
• Texas Section 443.255 - Allowance Of Contingent And Unliquidated Claims
  (a) A claim of an insured or third party may be allowed under Section 443.253, regardless of the fact that the claim was contingent or...
• Texas Section 443.256 - Special Provisions For Third-party Claims
  (a) When any third party asserts a cause of action against an insured of an insurer in liquidation, the third party may file a claim...
• Texas Section 443.257 - Disputed Claims
  (a) When objections to the liquidator's proposed treatment of a claim are filed and the liquidator does not alter the determination of the claim as...
• Texas Section 443.258 - Liquidator's Recommendations To Receivership Court
  The liquidator shall present to the receivership court, for approval, reports of claims settled or determined by the liquidator under Section 443.253. The reports must...
• Texas Section 443.259 - Claims Of Codebtors
  If a creditor does not timely file a proof of the creditor's claim, an entity that is liable to the creditor together with the insurer,...
• Texas Section 443.260 - Secured Creditors' Claims
  (a) The value of any security held by a secured creditor must be determined in one of the following ways: (1) by converting the same...

SUBCHAPTER G DISTRIBUTIONS

• Texas Section 443.261 - Qualified Financial Contracts
  (a) Notwithstanding any other provision of this chapter, including any other provision of this chapter permitting the modification of contracts, or other law of this...
• Texas Section 443.301 - Priority Of Distribution
  The priority of payment of distributions on unsecured claims must be in accordance with the order in which each class of claims is set forth...
• Texas Section 443.302 - Partial And Final Distributions Of Assets
  (a) With the approval of the receivership court, the liquidator may declare and pay one or more distributions to claimants whose claims have been allowed....
• Texas Section 443.303 - Early Access Payments
  (a) For purposes of this section, "distributable assets" means all general assets of the liquidation estate less: (1) amounts reserved, to the extent necessary and...

SUBCHAPTER H DISCHARGE

• Texas Section 443.304 - Unclaimed And Withheld Funds
  (a) If any funds of the receivership estate remain unclaimed after the final distribution under Section 443.302, the funds must be placed in a segregated...
• Texas Section 443.351 - Condition On Release From Delinquency Proceedings
  Until all payments of or on account of the insurer's contractual obligations by all guaranty associations, along with all expenses of the obligations and interest...
• Texas Section 443.352 - Termination Of Liquidation Proceedings
  When all property justifying the expense of collection and distribution has been collected and distributed under this chapter, the liquidator shall apply to the receivership...
• Texas Section 443.353 - Reopening Receivership
  After the liquidation proceeding has been terminated and the liquidator discharged, the commissioner or other interested party may at any time petition the court to...
• Texas Section 443.354 - Disposition Of Records During And After Termination Of Receivership
  (a) When it appears to the receiver that the records of the insurer in receivership are no longer useful, the receiver may recommend to the...

SUBCHAPTER I INTERSTATE RELATIONS

• Texas Section 443.355 - External Audit Of The Receiver's Books
  (a) The receivership court may, as it deems desirable, order audits to be made of the books of the receiver relating to any receivership established...
• Texas Section 443.401 - Ancillary Conservation Of Foreign Insurers
  (a) The commissioner may initiate an action against a foreign insurer pursuant to Section 443.051 on any of the grounds stated in that section or...
• Texas Section 443.402 - Domiciliary Receivers Appointed In Other States
  (a) A domiciliary receiver appointed in another state is vested by operation of law with title to, and may summarily take possession of, all property...

Last modified: September 28, 2016