Tex. Ins. Code § 464.054 · Subchapter B. FUND
USE OF FUNDS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) An amount advanced under Section 464.053 may be used to supplement the assets of an unauthorized insurer to pay administrative expenses and policy claims that are approved by:
(1) the commissioner in a proceeding under Section 443.051; or
(2) the receiver in a proceeding under Section 443.052.
(b) For the purposes of Section 443.301(b), approved policy claims under this chapter shall be classified as Class 2 claims.
(c) The commissioner or receiver, as applicable, is not required to make distributions from the assets of the unauthorized insurer before using amounts advanced under Section 464.053. Any payment of a policy claim made under Subsection (a) shall be treated as a distribution under Section 443.302. If approved policy claims cannot be paid in full from the funds advanced under Section 464.053 and the assets of the unauthorized insurer available for distribution, the claims shall be paid on a pro rata basis in the manner described in Section 443.301.
(d) Amounts advanced that are not needed to pay administrative expenses or policy claims shall be returned to the fund account. On a final distribution under Section 443.302 or the termination of a delinquency proceeding, any funds of the unauthorized insurer remaining after the payment in full of administrative expenses and policy claims shall be used to repay the advance, up to the amount of the advance.
(e) A person who has a policy claim may receive funds deposited or advanced under this chapter only in accordance with this section.
Notes and commentary — not statutory text
History
Added by Acts 2009, 81st Leg., R.S., Ch. 1026 (H.B. 4339), Sec. 1, eff. June 19, 2009.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.464.htm
- Text hash
- sha256 4bcb85d3d326d38dfc5a137d6c3039ac29749eac21e8fcdd49ff504854ee32b9
- 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 § 443.052COMMENCEMENT OF FORMAL DELINQUENCY PROCEEDING.Printed as Section 443.052
- Tex. Ins. Code § 443.301PRIORITY OF DISTRIBUTION.Printed as Section 443.301 | Section 443.301(b)
- Tex. Ins. Code § 443.302PARTIAL AND FINAL DISTRIBUTIONS OF ASSETS.Printed as Section 443.302
- Tex. Ins. Code § 464.053ADVANCE OF FUNDS.Printed as Section 464.053
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.