Texas Insurance Code

§ 824.101 — EFFECT OF MERGER OR CONSOLIDATION ON OUTSTANDING INSURANCE POLICIES

IN § 824.101Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part B. ORGANIZATION OF REGULATED ENTITIES · Ch. 824. MERGER AND CONSOLIDATION OF STOCK INSURANCE CORPORATIONS · Art. C. EFFECT OF MERGER OR CONSOLIDATION

Statute text

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(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.

Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.