Texas Insurance Code

§ 462.302 — PAYMENT OF COVERED CLAIMS

IN § 462.302Title 4. REGULATION OF SOLVENCY · Part D. GUARANTY ASSOCIATIONS · Ch. 462. TEXAS PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION · Art. G. ASSOCIATION POWERS AND DUTIES RELATING TO COVERED CLAIMS

Statute text

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(a)The association shall pay covered claims that exist before the designation of impairment or that arise:

(1)not later than the 30th day after the date of the designation of impairment;

(2)before the insurance policy expiration date, if that date is not later than the 30th day after the date of the designation of impairment; or

(3)before the insured replaces the insurance policy or causes the policy's cancellation, if the insured does so not later than the 30th day after the date of the designation of impairment.

(b)The association satisfies the obligation to pay a covered claim by paying the claimant the full amount of a covered claim for benefits.

(c)The association's liability is limited to the payment of covered claims. The association is not liable for any other claim or damages against the insured, an impaired insurer, the association, the receiver, the special deputy receiver, the commissioner, or the liquidator, including a claim for:

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Legislative history

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.