Tex. Ins. Code § 463.252 · Subchapter F. POWERS AND DUTIES OF ASSOCIATION RELATING TO IMPAIRED OR INSOLVENT INSURER
IMPAIRED DOMESTIC, FOREIGN, OR ALIEN INSURER NOT PAYING CLAIMS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) This section applies only to a member insurer that:
(1) is an impaired domestic, foreign, or alien insurer; and
(2) is not timely paying claims.
(b) Subject to Subsection (d), the association shall:
(1) with respect to the insurer, take one or more actions that the association is authorized to take under Section 463.251 with respect to an impaired domestic insurer, subject to the conditions of that section; or
(2) provide substitute benefits instead of the insurer's contractual obligations as provided by Subsection (c).
(c) A policy or contract owner, certificate holder, or enrollee who claims emergency or hardship may petition for substitute benefits under standards the association proposes and the commissioner approves. Substitute benefits are available only for a health claim, periodic annuity benefit payment, death benefit, supplemental benefit, or cash withdrawal.
(d) The association is required to take action under this section only if:
(1) the laws of the insurer's state of domicile provide that, until all payments of or on account of the insurer's contractual obligations are made by all guaranty associations and all expenses of the associations and interest on those payments and expenses have been repaid to the associations or a plan of repayment by the insurer has been approved by the associations:
(A) the delinquency proceeding may not be dismissed;
(B) the insurer and the insurer's assets may not be returned to the control of the insurer's shareholders or private management; and
(C) the insurer may not solicit or accept new business or have any suspended or revoked certificate of authority restored;
(2) the insurer is a domestic insurer that has been placed under an order of rehabilitation by a court in this state; or
(3) the insurer is a foreign or alien insurer and:
(A) the insurer has been prohibited from soliciting or accepting new business in this state;
(B) the insurer's certificate of authority has been suspended or revoked in this state; and
(C) a petition for rehabilitation or liquidation has been filed in a court in the insurer's state of domicile by the insurance official of that state.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 432 (S.B. 1153), Sec. 17, eff. September 1, 2019.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.463.htm
- Text hash
- sha256 3aa160d3552252fd578e7170cb6361ad42f4b055838f6efcf093e34727df4ec4
- 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.
Cited by 3 provisions
Provisions in this library whose text cites Tex. Ins. Code § 463.252. Each shows the citation as that text prints it.
Insurance Code
- Tex. Ins. Code § 463.254LIFE OR HEALTH INSURANCE POLICIES OR CONTRACTS.Printed as Section 463.252(b)(2) or 463.253
- Tex. Ins. Code § 463.255POLICY OR CONTRACT WITH GUARANTEED INTEREST RATE.Printed as Section 463.252(b)(2) or 463.253
- Tex. Ins. Code § 463.356ASSUMPTION OF POWERS AND DUTIES OF ASSOCIATION.Printed as Section 463.252(b)(2)
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.