Tex. Ins. Code § 443.401 · Subchapter I. INTERSTATE RELATIONS
ANCILLARY CONSERVATION OF FOREIGN INSURERS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The commissioner may initiate an action against a foreign insurer pursuant to Section 443.051 on any of the grounds stated in that section or on the basis that:
(1) any of the foreign insurer's property has been sequestered, garnished, or seized by official action in its domiciliary state or in any other state;
(2) the foreign insurer's certificate of authority to do business in this state has been revoked or was never issued and there are residents of this state with unpaid claims or in-force policies; or
(3) initiation of the action is necessary to enforce a stay under Section 462.309, 463.404, or 2602.259.
(b) If a domiciliary receiver has been appointed, the commissioner may initiate an action against a foreign insurer under Subsection (a)(1) or (a)(2) only with the consent of the domiciliary receiver.
(c) An order entered pursuant to this section must appoint the commissioner as conservator. The conservator's title to assets must be limited to the insurer's property and records located in this state.
(d) Notwithstanding Section 443.201(c), the conservator shall hold and conserve the assets located in this state until the commissioner in the insurer's domiciliary state is appointed its receiver or until an order terminating conservation is entered under Subsection (g). Once a domiciliary receiver is appointed, the conservator shall turn over to the domiciliary receiver all property subject to an order under this section.
(e) The conservator may liquidate property of the insurer as necessary to cover the costs incurred in the initiation or administration of a proceeding under this section.
(f) The court in which an action under this section is pending may issue a finding of insolvency or an ancillary liquidation order. The court may enter an ancillary liquidation order only for the limited purposes of:
(1) liquidating assets in this state to pay costs under Subsection (e); or
(2) activating relevant laws applicable to guaranty associations to pay valid claims that are not being paid by the insurer.
(g) The conservator may at any time petition the receivership court for an order terminating an order entered under this section.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.401 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(pp), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.401 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(pp), eff. September 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.443.htm
- Text hash
- sha256 ef15494bbd89c1d8503119d4199e88870e800f98423c7047eaca90ef09fe02e3
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Insurance Code
- Tex. Ins. Code § 443.051RECEIVERSHIP COURT'S SEIZURE ORDER.Printed as Section 443.051
- Tex. Ins. Code § 443.201TURNOVER OF ASSETS.Printed as Section 443.201(c)
- Tex. Ins. Code § 462.309STAY OF PROCEEDINGS; CERTAIN DECISIONS NOT BINDING.Printed as Section 462.309, 463.404, or 2602.259
- Tex. Ins. Code § 463.404STAY OF PROCEEDINGS; CERTAIN DECISIONS NOT BINDING.Printed as Section 462.309, 463.404, or 2602.259
- Tex. Ins. Code § 2602.259STAY OF PROCEEDINGS; CERTAIN DECISIONS NOT BINDING.Printed as Section 462.309, 463.404, or 2602.259
Cited by 2 provisions
Provisions in this library whose text cites Tex. Ins. Code § 443.401. Each shows the citation as that text prints it.
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.