Sec. 463.251. IMPAIRED DOMESTIC INSURER. (a) This section applies only to a member insurer that is an impaired domestic insurer.
(b) With the commissioner's approval, the association may:
(1) guarantee, assume, reissue, or reinsure, or cause to be guaranteed, assumed, reissued, or reinsured, one or more of the insurer's policies or contracts;
(2) provide money, pledges, notes, guarantees, or other means proper to:
(A) implement Subdivision (1); and
(B) ensure payment of the insurer's contractual obligations until action is taken under Subdivision (1); or
(3) loan money to the insurer.
(c) In taking action under Subsection (b), the association may impose any condition that:
(1) does not impair the insurer's contractual obligations; and
(2) is approved by:
(A) the commissioner; and
(B) the insurer, except in a conservation or rehabilitation ordered by a court.
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. 432 (S.B. 1153), Sec. 16, eff. September 1, 2019.
Structure Texas Statutes
Title 4 - Regulation of Solvency
Subtitle D - Guaranty Associations
Chapter 463 - Texas Life and Health Insurance Guaranty Association
Subchapter F. Powers and Duties of Association Relating
Section 463.251. Impaired Domestic Insurer
Section 463.252. Impaired Domestic, Foreign, or Alien Insurer Not Paying Claims
Section 463.253. Insolvent Insurer
Section 463.254. Life or Health Insurance Policies or Contracts
Section 463.255. Policy or Contract With Guaranteed Interest Rate
Section 463.256. Alternative Policy
Section 463.257. Imposition of Lien or Moratorium
Section 463.258. Premium for Reissuance of Terminated Coverage
Section 463.259. Premium Due During Receivership
Section 463.260. Limits on and Termination of Association Obligation
Section 463.261. Assignment of Rights