Texas Insurance Code

§ 462.310 — SETTLEMENT BY ASSOCIATION BINDING; PRIORITY OF CLAIM AND EXPENSES

IN § 462.310Title 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 settlement of a covered claim by the association or a similar organization in another state binds the receiver or statutory successor of an impaired insurer.

(b)The court having jurisdiction shall give the covered claim the same priority against assets of the impaired insurer that the claim would have had in the absence of this chapter.

(c)The expenses of the association or a similar organization in another state in handling claims have the same priority as the receiver's expenses.

Legislative history

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