Sec. 824.101. EFFECT OF MERGER OR CONSOLIDATION ON OUTSTANDING INSURANCE POLICIES. (a) A new or surviving corporation resulting from a merger or consolidation shall assume each insurance policy outstanding against each insurance corporation that merges or consolidates on the same terms and under the same conditions as if the policy had continued in force through the original corporation.
(b) The new or surviving insurance corporation shall implement the terms of the policy.
(c) The new or surviving insurance corporation is entitled to:
(1) all rights and privileges under the policy; and
(2) all reserves that accumulated on the policy before the merger or consolidation.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle B - Organization of Regulated Entities
Chapter 824 - Merger and Consolidation of Stock Insurance Corporations
Subchapter C. Effect of Merger or Consolidation
Section 824.101. Effect of Merger or Consolidation on Outstanding Insurance Policies
Section 824.102. Effect of Merger or Consolidation on Certain Investments
Section 824.103. Retirement and Cancellation of Treasury Shares