Texas Insurance Code

§ 981.005 — VALIDITY OF CONTRACTS

IN § 981.005Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part I. SURPLUS LINES INSURERS; COMPANIES NOT ORGANIZED IN TEXAS · Ch. 981. SURPLUS LINES INSURANCE · Art. A. GENERAL PROVISIONS

Statute text

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(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:

Legislative history

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.125, eff. April 1, 2009.