Sec. 462.306. DISCHARGE OF POLICY OBLIGATION. (a) The association shall discharge an impaired insurer's policy obligations, including the duty to defend insureds under a liability insurance policy, to the extent that the policy obligation is a covered claim under this chapter.
(b) In performing the association's statutory obligations, the association may also enforce a duty imposed on the insured or beneficiary under the terms of an insurance policy within the scope of this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
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