Sec. 462.303. CERTAIN DETERMINATIONS NOT BINDING. (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 or the insurer failed to exhaust all appeals;
(2) a judgment taken by default or consent against an insured or the impaired insurer; or
(3) a judgment, settlement, or release entered into by the insured or the impaired insurer.
(b) A judgment, settlement, or release described by Subsection (a) is not evidence of liability or of damages in connection with a claim brought against the association, an impaired insurer's insured, or another party under this chapter.
(c) The association is entitled to recover the association's costs, expenses, and reasonable attorney's fees incurred in contesting a claim based on a judgment, settlement, or release described by Subsection (a) on the association's behalf or on behalf of an impaired insurer's insured after the date on which the party asserting the claim is provided notice by the association or otherwise of the provisions of this section applicable to the judgment, settlement, or release.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 343 (S.B. 1063), Sec. 6, eff. September 1, 2019.
Structure Texas Statutes
Title 4 - Regulation of Solvency
Subtitle D - Guaranty Associations
Chapter 462 - Texas Property and Casualty Insurance Guaranty Association
Subchapter G. Association Powers and Duties Relating to Covered Claims
Section 462.302. Payment of Covered Claims
Section 462.303. Certain Determinations Not Binding
Section 462.304. Servicing Facility
Section 462.305. Limitation of Association's Liability
Section 462.306. Discharge of Policy Obligation
Section 462.307. Assignment of Rights
Section 462.308. Recovery From Certain Persons
Section 462.309. Stay of Proceedings; Certain Decisions Not Binding
Section 462.310. Settlement by Association Binding; Priority of Claim and Expenses