Texas Insurance Code

§ 443.301 — PRIORITY OF DISTRIBUTION

IN § 443.301Title 4. REGULATION OF SOLVENCY · Part C. DELINQUENT INSURERS · Ch. 443. INSURER RECEIVERSHIP ACT · Art. G. DISTRIBUTIONS

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The priority of payment of distributions on unsecured claims must be in accordance with the order in which each class of claims is set forth in this section. Every claim in each class shall be paid in full, or adequate funds retained for their payment, before the members of the next class receive payment, and all claims within a class must be paid substantially the same percentage of the amount of the claim. Except as provided by Subsections (a)(2), (a)(3), (i), and (k), subclasses may not be established within a class. No claim by a shareholder, policyholder, or other creditor shall be permitted to circumvent the priority classes through the use of equitable remedies. The order of distribution of claims shall be:

(a)Class 1. (1) The costs and expenses of administration expressly approved or ratified by the liquidator, including the following:

(A)the actual and necessary costs of preserving or recovering the property of the insurer;

(B)reasonable compensation for all services rendered on behalf of the administrative supervisor or receiver;

(C)any necessary filing fees;

(D)the fees and mileage payable to witnesses;

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Legislative history

Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(jj), eff. September 1, 2007. Acts 2011, 82nd Leg., R.S., Ch. 193 (S.B. 1433), Sec. 10, eff. September 1, 2011. Acts 2015, 84th Leg., R.S., Ch. 1187 (S.B. 1196), Sec. 1, eff. September 1, 2015.