Sec. 981.005. VALIDITY OF CONTRACTS. (a) Unless a material and intentional violation of this chapter or Chapter 225 exists, an insurance contract obtained from an eligible surplus lines insurer is:
(1) valid and enforceable as to all parties; and
(2) recognized in the same manner as a comparable contract issued by an authorized insurer.
(b) A material and intentional violation of this chapter or Chapter 225 does not preclude the insured from enforcing the insured's rights under the contract.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.125, eff. April 1, 2009.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle I - Surplus Lines Insurers; Companies Not Organized in Texas
Chapter 981 - Surplus Lines Insurance
Subchapter A. General Provisions
Section 981.003. Applicability of Chapter
Section 981.0031. Exempt Commercial Purchaser Defined
Section 981.0032. Qualified Risk Manager Defined
Section 981.0033. Industrial Insured Defined
Section 981.004. Surplus Lines Insurance Authorized
Section 981.005. Validity of Contracts
Section 981.007. Liability of Surplus Lines Insurer for Losses and Unearned Premiums