CHAPTER 443. INSURER RECEIVERSHIP ACT
INSURANCE CODE
TITLE 4. REGULATION OF SOLVENCY
SUBTITLE C. DELINQUENT INSURERS
CHAPTER 443. INSURER RECEIVERSHIP ACT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 443.001. CONSTRUCTION AND PURPOSE. (a) This chapter may
be cited as the Insurer Receivership Act.
(b) This chapter may not be interpreted to limit the powers
granted the commissioner under other provisions of law.
(c) This chapter shall be liberally construed to support the
purpose stated in Subsection (e).
(d) All powers and authority of a receiver under this chapter
are cumulative and are in addition to all powers and authority
that are available to a receiver under law other than this
chapter.
(e) The purpose of this chapter is to protect the interests of
insureds, claimants, creditors, and the public generally,
through:
(1) early detection of any potentially hazardous condition in an
insurer and prompt application of appropriate corrective
measures;
(2) improved methods for conserving and rehabilitating insurers;
(3) enhanced efficiency and economy of liquidation, through
clarification of the law, to minimize legal uncertainty and
litigation;
(4) apportionment of any unavoidable loss in accordance with the
statutory priorities set out in this chapter;
(5) lessening the problems of interstate receivership by:
(A) facilitating cooperation between states in delinquency
proceedings; and
(B) extending the scope of personal jurisdiction over debtors of
the insurer located outside this state;
(6) regulation of the business of insurance by the impact of the
law relating to delinquency procedures and related substantive
rules; and
(7) providing for a comprehensive scheme for the receivership of
insurers and those subject to this chapter as part of the
regulation of the business of insurance in this state because
proceedings in cases of insurer insolvency and delinquency are
deemed an integral aspect of the business of insurance and are of
vital public interest and concern.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.001
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.001
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Sec. 443.002. CONFLICTS OF LAW. This chapter and the state law
governing insurance guaranty associations constitute this state's
insurer receivership laws and shall be construed together in a
manner that is consistent. In the event of a conflict between the
insurer receivership laws and the provisions of any other law,
the insurer receivership laws prevail.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.002
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.002
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Sec. 443.003. COVERED PERSONS. The provisions of this chapter
apply to all:
(1) insurers who are doing or have done an insurance business in
this state and against whom claims arising from that business may
exist now or in the future and to all persons subject to
examination by the commissioner;
(2) insurers who purport to do an insurance business in this
state;
(3) insurers who have insureds resident in this state;
(4) other persons organized or doing insurance business, or in
the process of organizing with the intent to do insurance
business in this state;
(5) nonprofit health corporations and all fraternal benefit
societies subject to Chapters 844 and 885, respectively;
(6) title insurance companies subject to Title 11;
(7) health maintenance organizations subject to Chapter 843; and
(8) surety and trust companies subject to Chapter 7, general
casualty companies subject to Chapter 861, statewide mutual
assessment companies subject to Chapter 881, mutual insurance
companies subject to Chapter 882 or 883, local mutual aid
associations subject to Chapter 886, burial associations subject
to Chapter 888, farm mutual insurance companies subject to
Chapter 911, county mutual insurance companies subject to Chapter
912, Lloyd's plans subject to Chapter 941, reciprocal or
interinsurance exchanges subject to Chapter 942, and fidelity,
guaranty, and surety companies.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.003
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.003
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Sec. 443.004. DEFINITIONS. (a) For the purposes of this
chapter:
(1) "Affiliate," "control," and "subsidiary" have the meanings
assigned by Chapter 823.
(2) "Alien insurer" means an insurer incorporated or organized
under the laws of a jurisdiction that is not a state.
(3) "Creditor" or "claimant" means a person having any claim
against an insurer, whether the claim is matured or not,
liquidated or unliquidated, secured or unsecured, absolute,
fixed, or contingent.
(4) "Delinquency proceeding" means any proceeding instituted
against an insurer for the purpose of liquidating,
rehabilitating, or conserving the insurer, and any proceeding
under Section 443.051.
(5) "Doing business," including "doing insurance business" and
the "business of insurance," includes any of the following acts,
whether effected by mail, electronic means, or otherwise:
(A) the issuance or delivery of contracts of insurance, either
to persons resident or covering a risk located in this state;
(B) the solicitation of applications for contracts described by
Paragraph (A) or other negotiations preliminary to the execution
of the contracts;
(C) the collection of premiums, membership fees, assessments, or
other consideration for contracts described by Paragraph (A);
(D) the transaction of matters subsequent to the execution of
contracts described by Paragraph (A) and arising out of those
contracts; or
(E) operating as an insurer under a certificate of authority
issued by the department.
(6) "Domiciliary state" means the state in which an insurer is
incorporated or organized or, in the case of an alien insurer,
its state of entry.
(7) "Foreign insurer" means an insurer domiciled in another
state.
(8) "Formal delinquency proceeding" means any rehabilitation or
liquidation proceeding.
(9) "General assets" includes:
(A) all property of the estate that is not:
(i) subject to a secured claim or a valid and existing express
trust for the security or benefit of specified persons or classes
of persons; or
(ii) required by the insurance laws of this state or any other
state to be held for the benefit of specified persons or classes
of persons; and
(B) all property of the estate and the proceeds of that property
in excess of the amount necessary to discharge any secured claims
described by Paragraph (A).
(10) "Good faith" means honesty in fact and intention, and for
the purposes of Subchapter F also requires the absence of:
(A) information that would lead a reasonable person in the same
position to know that the insurer is financially impaired or
insolvent; and
(B) knowledge regarding the imminence or pendency of any
delinquency proceeding against the insurer.
(11) "Guaranty association" means any mechanism mandated by
Chapter 462, 463, or 2602 or other laws of this state or a
similar mechanism in another state that is created for the
payment of claims or continuation of policy obligations of
financially impaired or insolvent insurers.
(12) "Impaired" means that an insurer does not have admitted
assets at least equal to all its liabilities together with the
minimum surplus required to be maintained under this code.
(13) "Insolvency" or "insolvent" means an insurer:
(A) is unable to pay its obligations when they are due;
(B) does not have admitted assets at least equal to all its
liabilities; or
(C) has a total adjusted capital that is less than that required
under:
(i) Chapter 822, 841, or 843, as applicable; or
(ii) applicable rules or guidelines adopted by the commissioner
under Section 822.210, 841.205, or 843.404.
(14) "Insurer" means any person that has done, purports to do,
is doing, or is authorized to do the business of insurance in
this state, and is or has been subject to the authority of or to
liquidation, rehabilitation, reorganization, supervision, or
conservation by any insurance commissioner. For purposes of this
chapter, any other persons included under Section 443.003 are
insurers.
(15) "Netting agreement" means a contract or agreement,
including terms and conditions incorporated by reference in a
contract or agreement, and a master agreement (which master
agreement, together with all schedules, confirmations,
definitions, and addenda to the agreement and transactions under
the agreement, schedules, confirmations, definitions, or addenda,
are to be treated as one netting agreement) that documents one or
more transactions between the parties to the contract or
agreement for or involving one or more qualified financial
contracts and that, among the parties to the netting agreement,
provides for the netting or liquidation of qualified financial
contracts, present or future payment obligations, or payment
entitlements under the contract or agreement, including
liquidation or close-out values relating to the obligations or
entitlements.
(16) "New value" means money, money's worth in goods, services,
or new credit, or release by a transferee of property previously
transferred to the transferee in a transaction that is neither
void nor voidable by the insurer or the receiver under any
applicable law, including proceeds of the property. The term
does not include an obligation substituted for an existing
obligation.
(17) "Party in interest" means the commissioner, a 10 percent or
greater equity security holder in the insolvent insurer, any
affected guaranty association, any nondomiciliary commissioner
for a jurisdiction in which the insurer has outstanding claims
liabilities, and any of the following parties that have filed a
request for inclusion on the service list under Section 443.007:
(A) an insurer that ceded to or assumed business from the
insolvent insurer; and
(B) an equity shareholder, policyholder, third-party claimant,
creditor, and any other person, including any indenture trustee,
with a financial or regulatory interest in the receivership
proceeding.
(18) "Person" means individual, aggregation of individuals,
partnership, corporation, or other entity.
(19) "Policy" means a written contract of insurance, written
agreement for or effecting insurance, or the certificate for or
effecting insurance, by whatever name. The term includes all
clauses, riders, endorsements, and papers that are a part of the
contract, agreement, or certificate. The term does not include a
contract of reinsurance.
(20) "Property of the insurer" or "property of the estate"
includes:
(A) all right, title, and interest of the insurer in property,
whether legal or equitable, tangible or intangible, choate or
inchoate, and includes choses in action, contract rights, and any
other interest recognized under the laws of this state;
(B) entitlements that:
(i) existed prior to the entry of an order of rehabilitation or
liquidation; and
(ii) may arise by operation of the provisions of this chapter or
other provisions of law allowing the receiver to avoid prior
transfers or assert other rights; and
(C) all records and data that are otherwise the property of the
insurer, in whatever form maintained, within the possession,
custody, or control of a managing general agent, third-party
administrator, management company, data processing company,
accountant, attorney, affiliate, or other person, including:
(i) claims and claim files;
(ii) policyholder lists;
(iii) application files;
(iv) litigation files;
(v) premium records;
(vi) rate books and underwriting manuals;
(vii) personnel records; and
(viii) financial records or similar records.
(21) "Qualified financial contract" means a commodity contract,
forward contract, repurchase agreement, securities contract, swap
agreement, and any similar agreement that the commissioner
determines by rule to be a qualified financial contract for the
purposes of this chapter.
(22) "Receiver" means liquidator, rehabilitator, or ancillary
conservator, as the context requires.
(23) "Receivership" means any liquidation, rehabilitation, or
ancillary conservation, as the context requires.
(24) "Receivership court" refers to the court in which a
delinquency proceeding is pending, unless the context requires
otherwise.
(25) "Reinsurance" means transactions or contracts by which an
assuming insurer agrees to indemnify a ceding insurer against
all, or a part, of any loss that the ceding insurer might sustain
under the policy or policies that it has issued or will issue.
(26) "Secured claim" means any claim secured by an asset that is
not a general asset. The term includes the right to set off as
provided in Section 443.209. The term does not include a claim
arising from a constructive or resulting trust, a special deposit
claim, or a claim based on mere possession.
(27) "Special deposit" means a deposit established pursuant to
statute for the security or benefit of a limited class or limited
classes of persons.
(28) "Special deposit claim" means any claim secured by a
special deposit. The term does not include any claim secured by
the general assets of the insurer.
(29) "State" means any state, district, or territory of the
United States.
(30) "Transfer" includes the sale and every other and different
mode, direct or indirect, of disposing of or of parting with
property or with an interest in property, including a setoff, or
with the possession of property or of fixing a lien upon property
or upon an interest in property, absolutely or conditionally,
voluntarily or involuntarily, by or without judicial proceedings.
The retention of a security title in property delivered to an
insurer is deemed a transfer suffered by the insurer.
(31) "Unauthorized insurer" means an insurer doing the business
of insurance in this state that has not received from this state
a certificate of authority or some other type of authority that
allows for doing the business of insurance in this state.
(b) For purposes of this chapter, "admitted assets" and
"liabilities" have the meanings assigned by the department in
rules relating to risk-based capital.
(c) For purposes of Subsection (a)(21):
(1) "Commodity contract" means:
(A) a contract for the purchase or sale of a commodity for
future delivery on or subject to the rules of a board of trade
designated as a contract market by the Commodity Futures Trading
Commission under the Commodity Exchange Act (7 U.S.C. Section 1
et seq.) or a board of trade outside the United States;
(B) an agreement that is subject to regulation under Section 19,
Commodity Exchange Act (7 U.S.C. Section 23), and that is
commonly known to the commodities trade as a margin account,
margin contract, leverage account, or leverage contract; or
(C) an agreement or transaction that is subject to regulation
under Section 4c(b), Commodity Exchange Act (7 U.S.C. Section
6c(b)), and that is commonly known to the commodities trade as a
commodity option.
(2) "Forward contract" means a contract, other than a commodity
contract, with a maturity date more than two days after the date
the contract is entered into, that is for the purchase, sale, or
transfer of a commodity, as defined by Section 1a, Commodity
Exchange Act (7 U.S.C. Section 1a), or any similar good, article,
service, right, or interest that is presently or in the future
becomes the subject of dealing in the forward contract trade or
product or byproduct of the contract. The term includes a
repurchase transaction, reverse repurchase transaction,
consignment, lease, swap, hedge transaction, deposit, loan,
option, allocated transaction, unallocated transaction, or a
combination of these or option on any of them.
(3) "Repurchase agreement" includes a reverse repurchase
agreement and means an agreement, including related terms, that
provides for the transfer of certificates of deposit, eligible
bankers' acceptances, or securities that are direct obligations
of or that are fully guaranteed as to principal and interest by
the United States against the transfer of funds by the transferee
of the certificates of deposit, eligible bankers' acceptances, or
securities with a simultaneous agreement by the transferee to
transfer to the transferor certificates of deposit, eligible
bankers' acceptances, or securities as described in this
subdivision, on demand or at a date certain not later than one
year after the transfers, against the transfer of funds. For the
purposes of this subdivision, the items that may be subject to a
repurchase agreement:
(A) include mortgage-related securities and a mortgage loan and
an interest in a mortgage loan; and
(B) do not include any participation in a commercial mortgage
loan unless the commissioner determines by rule to include the
participation within the meaning of the term.
(4) "Securities contract" means a contract for the purchase,
sale, or loan of a security, including an option for the
repurchase or sale of a security, certificate of deposit, or
group or index of securities or an interest in the group or index
or based on the value of the group or index, an option entered
into on a national securities exchange relating to foreign
currencies, or the guarantee of a settlement of cash or
securities by or to a securities clearing agency. For the
purposes of this subdivision, the term "security" includes a
mortgage loan, a mortgage-related security, and an interest in
any mortgage loan or mortgage-related security.
(5) "Swap agreement" means an agreement, including the terms and
conditions incorporated by reference in an agreement, that is a
rate swap agreement, basis swap, commodity swap, forward rate
agreement, interest rate future, interest rate option, forward
foreign exchange agreement, spot foreign exchange agreement, rate
cap agreement, rate floor agreement, rate collar agreement,
currency swap agreement, cross-currency rate swap agreement,
currency future, or currency option or any other similar
agreement. The term includes any combination agreements
described by this subdivision and an option to enter into any
agreement described by this subdivision.
(d) The definitions under this section apply only to this
chapter unless the context of another law requires otherwise.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.004
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(b), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.004
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(b), eff. September 1, 2007.
Sec. 443.005. JURISDICTION AND VENUE. (a) A delinquency
proceeding may not be commenced under this chapter by a person
other than the commissioner, and a court does not have
jurisdiction to entertain, hear, or determine any delinquency
proceeding commenced by any other person.
(b) A court of this state does not have jurisdiction, other than
in accordance with this chapter, to entertain, hear, or determine
any complaint praying for:
(1) the liquidation, rehabilitation, seizure, sequestration,
conservation, or receivership of any insurer; or
(2) a stay, injunction, restraining order, or other relief
preliminary, incidental, or relating to proceedings described by
Subdivision (1).
(c) The receivership court, as of the commencement of a
delinquency proceeding under this chapter, has exclusive
jurisdiction of all property of the insurer, wherever located,
including property located outside the territorial limits of the
state. The receivership court has original but not exclusive
jurisdiction of all civil proceedings arising:
(1) under this chapter; or
(2) in or related to delinquency proceedings under this chapter.
(d) In addition to other grounds for jurisdiction provided by
the law of this state, a court having jurisdiction of the subject
matter has jurisdiction over a person served pursuant to Rules 21
and 21a, Texas Rules of Civil Procedure, or other applicable
provisions of law in an action brought by the receiver if the
person served:
(1) is or has been an agent, or other person who, at any time,
has written policies of insurance for or has acted in any manner
on behalf of an insurer against which a delinquency proceeding
has been instituted, in any action resulting from or incident to
such a relationship with the insurer;
(2) is or has been an insurer or reinsurer who, at any time, has
entered into a contract of reinsurance with an insurer against
which a delinquency proceeding has been instituted, or who is an
agent of or for the reinsurer, in any action on or incident to
the reinsurance contract;
(3) is or has been an officer, director, manager, trustee,
organizer, promoter, or other person in a position of comparable
authority or influence over an insurer against which a
delinquency proceeding has been instituted, in any action
resulting from or incident to such a relationship with the
insurer;
(4) at the time of the institution of the delinquency proceeding
against the insurer, is or was holding assets in which the
receiver claims an interest on behalf of the insurer in any
action concerning the assets; or
(5) is obligated to the insurer in any way, in any action on or
incident to the obligation.
(e) If, on motion of any party, the receivership court finds
that any action, as a matter of substantial justice, should be
tried in a forum outside this state, the receivership court may
enter an appropriate order to stay further proceedings on the
action in this state. Except as to claims against the estate,
nothing in this chapter deprives a party of any contractual right
to pursue arbitration. A party in arbitration may bring a claim
or counterclaim against the estate, but the claim or counterclaim
is subject to Section 443.209.
(f) Service must be made upon the person named in the petition
in accordance with Rules 21 and 21a, Texas Rules of Civil
Procedure. In lieu of such service, upon application to the
receivership court, service may be made in any manner the
receivership court directs if it is satisfactorily shown by
affidavit:
(1) in the case of a corporation, that the officers of the
corporation cannot be served because they have departed from the
state or otherwise concealed themselves with intent to avoid
service;
(2) in the case of a Lloyd's plan or reciprocal or
interinsurance exchange, that the individual attorney in fact or
the officers of the corporate attorney in fact cannot be served
because of departure or concealment; or
(3) in the case of an individual, that the person cannot be
served because of the individual's departure or concealment.
(g) An action authorized by this section must be brought in a
district court in Travis County.
(h) At any time after an order is entered pursuant to Section
443.051, 443.101, or 443.151, the commissioner or receiver may
transfer the case to the county of the principal office of the
person proceeded against. In the event of transfer, the court in
which the proceeding was commenced, upon application of the
commissioner or receiver, shall direct its clerk to transmit the
court's file to the clerk of the court to which the case is to be
transferred. The proceeding, after transfer, shall be conducted
in the same manner as if it had been commenced in the court to
which the matter is transferred.
(i) A person may not intervene in any delinquency proceeding in
this state for the purpose of seeking or obtaining payment of any
judgment, lien, or other claim of any kind. The claims procedure
set forth in this chapter constitutes the exclusive means for
obtaining payment of claims from the receivership estate. This
provision is not intended to affect the rights conferred on the
guaranty associations by Section 443.008(l).
(j) The foregoing provisions of this section notwithstanding,
the provisions of this chapter do not confer jurisdiction on the
receivership court to resolve coverage disputes between guaranty
associations and those asserting claims against them resulting
from the initiation of a delinquency proceeding under this
chapter. The determination of any dispute with respect to the
statutory coverage obligations of any guaranty association by a
court or administrative agency or body with jurisdiction in the
guaranty association's state of domicile is binding and
conclusive as to the parties in a delinquency proceeding
initiated in the receivership court, including the policyholders
of the insurer. With respect to a guaranty association's
obligations under a rehabilitation plan, the receivership court
has jurisdiction only if the guaranty association expressly
consents to the jurisdiction of the court.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.005
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(c), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.005
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(c), eff. September 1, 2007.
Sec. 443.006. EXEMPTION FROM FEES. The receiver may not be
required to pay any filing, recording, transcript, or
authenticating fee to any public officer in this state.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.006
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.006
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Sec. 443.007. NOTICE, HEARING, AND APPEAL ON MATTERS SUBMITTED
BY RECEIVER FOR RECEIVERSHIP COURT APPROVAL. (a) Upon written
request to the receiver, a person must be placed on the service
list to receive notice of matters filed by the receiver. It is
the responsibility of the person requesting notice to inform the
receiver in writing of any changes in the person's address or to
request that the person's name be deleted from the service list.
The receiver may require that the persons on the service list
provide confirmation that they wish to remain on the service
list. Any person who fails to confirm the person's intent to
remain on the service list may be purged from the service list.
Inclusion on the service list does not confer standing in the
delinquency proceeding to raise, appear, or be heard on any
issue.
(b) Except as otherwise provided by this chapter, notice and
hearing of any matter submitted by the receiver to the
receivership court for approval under this chapter must be
conducted in accordance with Subsections (c)-(g).
(c) The receiver shall file an application explaining the
proposed action and the basis of the proposed action. The
receiver may include any evidence in support of the application.
If the receiver determines that any documents supporting the
application are confidential, the receiver may submit them to the
receivership court under seal for in camera inspection.
(d) The receiver shall provide notice of the application to all
persons on the service list and any other parties as determined
by the receiver. Notice may be provided by first class mail
postage paid, electronic mail, or facsimile transmission, at the
receiver's discretion. For purposes of this section, notice is
deemed to be given on the date that it is deposited with the U.S.
Postmaster or transmitted, as applicable, to the last known
address as shown on the service list.
(e) Any party in interest objecting to the application must file
an objection specifying the grounds for the objection not later
than the 20th day after the date of the notice of the filing of
the application or within another period as the receivership
court may set, and must serve copies on the receiver and any
other persons served with the application within the same period.
An objecting party has the burden of showing why the
receivership court should not authorize the proposed action.
(f) If no objection to the application is timely filed, the
receivership court may enter an order approving the application
without a hearing, or hold a hearing to determine if the
receiver's application should be approved. The receiver may
request that the receivership court enter an order or hold a
hearing on an expedited basis.
(g) If an objection is timely filed, the receivership court may
hold a hearing. If the receivership court approves the
application and, upon a motion by the receiver, determines that
the objection was frivolous or filed merely for delay or for
another improper purpose, the receivership court shall order the
objecting party to pay the receiver's reasonable costs and fees
of defending the action.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.007
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.007
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Sec. 443.008. INJUNCTIONS AND ORDERS. (a) The receivership
court may issue any order, process, or judgment, including stays,
injunctions, or other orders, as necessary or appropriate to
carry out the provisions of this chapter or an approved
rehabilitation plan.
(b) This chapter may not be construed to limit the ability of
the receiver to apply to a court other than the receivership
court in any jurisdiction to carry out any provision of this
chapter or for the purpose of pursuing claims against any person.
(c) Except as provided by Subsection (e) or as otherwise
provided by this chapter and subject to Subsection (g), the
commencement of a delinquency proceeding under this chapter
operates as a stay, applicable to all persons, of:
(1) the commencement or continuation, including the issuance or
employment of process, of a judicial, administrative, or other
action or proceeding against the insurer, including an
arbitration proceeding, that was or could have been commenced
before the commencement of the delinquency proceeding under this
chapter, or to recover a claim against the insurer that arose
before the commencement of the delinquency proceeding under this
chapter;
(2) the enforcement against the insurer or against property of
the insurer of a judgment obtained before the commencement of the
delinquency proceeding under this chapter;
(3) any act to obtain or retain possession of property of the
insurer or of property from the insurer or to exercise control
over property or records of the insurer;
(4) any act to create, perfect, or enforce any lien against
property of the insurer;
(5) any act to collect, assess, or recover a claim against the
insurer that arose before the commencement of a delinquency
proceeding under this chapter;
(6) the commencement or continuation of an action or proceeding
against a reinsurer of the insurer, by the holder of a claim
against the insurer, seeking reinsurance recoveries that are
contractually due to the insurer; and
(7) except as provided by Subsection (e)(1), the commencement or
continuation of an action or proceeding by a governmental unit to
terminate or revoke an insurance license.
(d) Except as provided in Subsection (e) or as otherwise
provided by this chapter, the commencement of a delinquency
proceeding under this chapter operates as a stay, applicable to
all persons, of any judicial, administrative, or other action or
proceeding, including the enforcement of any judgment, against
any insured that was or could have been commenced before the
commencement of the delinquency proceeding under this chapter, or
to recover a claim against the insured that arose before or after
the commencement of the delinquency proceeding under this chapter
and for which the insurer is or may be liable under a policy of
insurance or is obligated to defend a party. The stay provided
by this subsection terminates 90 days after the date of
appointment of the receiver, unless, for good cause shown, the
stay is extended by order of the receivership court after notice
to any affected parties and any hearing the receivership court
determines is appropriate.
(e) Notwithstanding Subsection (c), the commencement of a
delinquency proceeding under this chapter does not operate as a
stay of:
(1) regulatory actions not described by Subsection (c)(7) that
are taken by the commissioners of nondomiciliary states,
including the suspension of licenses;
(2) criminal proceedings;
(3) any act to perfect or to maintain or continue the perfection
of an interest in property to the extent that the act is
accomplished within any relation back period under applicable
law;
(4) set off as permitted by Section 443.209;
(5) pursuit and enforcement of nonmonetary governmental claims,
judgments, and proceedings;
(6) presentment of a negotiable instrument and the giving of
notice and protesting dishonor of the instrument;
(7) enforcement of rights against single beneficiary trusts
established pursuant to and in compliance with laws relating to
credit for reinsurance;
(8) termination, liquidation, and netting of obligations under
qualified financial contracts as provided for in Section 443.261;
(9) discharge by a guaranty association of statutory
responsibilities under any law governing guaranty associations;
or
(10) any of the following actions:
(A) an audit by a governmental unit to determine tax liability;
(B) the issuance to the insurer by a governmental unit of a
notice of tax deficiency;
(C) a demand for tax returns; or
(D) the making of an assessment for any tax and issuance of a
notice and demand for payment of the assessment.
(f) Except as provided by Subsection (h):
(1) the stay of an act against property of the insurer under
Subsection (c) continues until the property is no longer property
of the receivership estate; and
(2) the stay of any other act under Subsection (c) continues
until the earlier of the time the delinquency proceeding is
closed or dismissed.
(g) Notwithstanding the provisions of Subsection (c), claims
against the insurer that arose before the commencement of the
delinquency proceeding under this chapter may be asserted as a
counterclaim in any judicial, administrative, or other action or
proceeding initiated by or on behalf of the receiver against the
holder of the claims.
(h) On request of a party in interest and after notice and any
hearing the receivership court determines is appropriate, the
receivership court may grant relief from the stay of Subsection
(c) or (d), such as by terminating, annulling, modifying, or
conditioning the stay:
(1) for cause as described by Subsection (i); or
(2) with respect to a stay of an act against property under
Subsection (c) if:
(A) the insurer does not have equity in the property; and
(B) the property is not necessary to an effective rehabilitation
plan.
(i) For purposes of Subsection (h), "cause" includes the
receiver canceling a policy, surety bond, or surety undertaking
if the creditor is entitled, by contract or by law, to require
the insured or the principal to have a policy, surety bond, or
surety undertaking and the insured or the principal fails to
obtain a replacement policy, surety bond, or surety undertaking
not later than the later of:
(1) the 30th day after the date the receiver cancels the policy,
surety bond, or surety undertaking; or
(2) the time permitted by contract or law.
(j) In any hearing under Subsection (h), the party seeking
relief from the stay has the burden of proof on each issue, which
must be established by clear and convincing evidence.
(k) The estate of an insurer that is injured by any wilful
violation of a stay provided by this section is entitled to
actual damages, including costs and attorney's fees. In
appropriate circumstances, the receivership court may impose
additional sanctions.
(l) Any guaranty association or its designated representative
may intervene as a party as a matter of right or otherwise appear
and participate in any court proceeding concerning a delinquency
proceeding if the association is or may become liable to act as a
result of the rehabilitation or liquidation of the insurer.
Exercise by any guaranty association or its designated
representative of the right to intervene conferred under this
subsection does not constitute grounds to establish general
personal jurisdiction by the courts of this state. The
intervening guaranty association or its designated representative
are subject to the receivership court's jurisdiction for the
limited purpose for which it intervenes.
(m) Notwithstanding any other provision of law, bond may not be
required of the commissioner or receiver in relation to any stay
or injunction under this section.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.008
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(d), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.008
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(d), eff. September 1, 2007.
Sec. 443.009. STATUTES OF LIMITATIONS. (a) If applicable law,
an order, or an agreement fixes a period within which the insurer
may commence an action, and this period has not expired before
the date of the filing of the initial petition in a delinquency
proceeding, the receiver may commence an action only before the
later of:
(1) the end of the period, including any suspension of the
period occurring on or after the filing of the initial petition
in a delinquency proceeding; or
(2) four years after the later of the date of entry of an order
for either rehabilitation or liquidation.
(b) Except as provided by Subsection (a), if applicable law, an
order, or an agreement fixes a period within which the insurer
may file any pleading, demand, notice, or proof of claim or loss,
cure a default in a case or proceeding, or perform any other
similar act, and the period has not expired before the date of
the filing of the petition initiating formal delinquency
proceedings, the receiver may file, cure, or perform, as the case
may be, only before the later of:
(1) the end of the period, including any suspension of the
period occurring on or after the filing of the initial petition
in the delinquency proceeding; or
(2) 60 days after the later of the date of entry of an order for
either rehabilitation or liquidation.
(c) If applicable law, an order, or an agreement fixes a period
for commencing or continuing a civil action in a court other than
the receivership court on a claim against the insurer, and the
period has not expired before the date of the initial filing of
the petition in a delinquency proceeding, then the period does
not expire until the later of:
(1) the end of the period, including any suspension of the
period occurring on or after the filing of the initial petition
in the delinquency proceeding; or
(2) 30 days after termination or expiration of the stay under
Section 443.008 with respect to the claim.
(d) If the otherwise applicable limitations period has not
expired prior to the initial filing of the petition commencing a
delinquency proceeding, any other action or proceeding filed by a
receiver may be commenced at any time within four years after the
date upon which the cause of action accrues or four years after
the date on which the receiver is appointed, whichever is later.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.009
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(e), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.009
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(e), eff. September 1, 2007.
Sec. 443.010. COOPERATION OF OFFICERS, OWNERS, AND EMPLOYEES.
(a) Any present or former officer, manager, director, trustee,
owner, employee, or agent of any insurer, or any other persons
with authority over or in charge of any segment of the insurer's
affairs, shall cooperate with the commissioner or receiver in any
proceeding under this chapter or any investigation preliminary to
the proceeding. For purposes of this section:
(1) "person" includes any person who exercises control directly
or indirectly over activities of the insurer through any holding
company or other affiliate of the insurer; and
(2) "cooperate" includes:
(A) replying promptly in writing to any inquiry from the
commissioner or receiver requesting the reply; and
(B) promptly making available to the commissioner or receiver
any books, accounts, documents, or other records or information
or property of or pertaining to the insurer and in the person's
possession, custody, or control.
(b) A person may not obstruct or interfere with the commissioner
or receiver in the conduct of any delinquency proceeding or any
preliminary or incidental investigation.
(c) This section may not be construed to abridge otherwise
existing legal rights, including the right to resist a petition
for liquidation or other delinquency proceedings, or other
orders.
(d) Any person described by Subsection (a) who fails to
cooperate with the commissioner or receiver, or any person who
obstructs or interferes with the commissioner or receiver in the
conduct of any delinquency proceeding or any preliminary or
incidental investigation, or who violates any order validly
issued under this chapter:
(1) commits an offense; and
(2) is subject to the imposition by the commissioner of an
administrative penalty not to exceed $10,000 and subject to the
revocation or suspension of any licenses issued by the
commissioner in accordance with Chapters 82 and 84.
(e) An offense under Subsection (d) is punishable by a fine not
exceeding $10,000 or imprisonment for not more than one year, or
both fine and imprisonment.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.010
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.010
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Sec. 443.011. ACTIONS BY AND AGAINST RECEIVER. (a) An
allegation by the receiver of improper or fraudulent conduct
against any person may not be the basis of a defense to the
enforcement of a contractual obligation owed to the insurer by a
third party, unless the conduct is found to have been materially
and substantially related to the contractual obligation for which
enforcement is sought.
(b) A prior wrongful or negligent action of any present or
former officer, manager, director, trustee, owner, employee, or
agent of the insurer may not be asserted as a defense to a claim
by the receiver under a theory of estoppel, comparative fault,
intervening cause, proximate cause, reliance, mitigation of
damages, or otherwise, except that the affirmative defense of
fraud in the inducement may be asserted against the receiver in a
claim based on a contract, and a principal under a surety bond or
a surety undertaking is entitled to credit against any
reimbursement obligation to the receiver for the value of any
property pledged to secure the reimbursement obligation to the
extent that the receiver has possession or control of the
property or that the insurer or its agents commingled or
otherwise misappropriated the property. Evidence of fraud in the
inducement is admissible only if the evidence is contained in the
records of the insurer.
(c) An action or inaction by the department or the insurance
regulatory authorities in any state may not be asserted as a
defense to a claim by the receiver.
(d) Except as provided by Subsection (e), a judgment or order
entered against an insured or the insurer in contravention of any
stay or injunction under this chapter, or at any time by default
or collusion, may not be considered as evidence of liability or
of the amount of damages in adjudicating claims filed in the
estate arising out of the subject matter of the judgment or
order.
(e) Subsection (d) does not apply to guaranty associations'
claims for amounts paid on settlements and judgments in pursuit
of their statutory obligations.
(f) The receiver may not be deemed a governmental entity for the
purposes of any state law awarding fees to a litigant who
prevails against a governmental entity.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.011
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.011
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Sec. 443.012. UNRECORDED OBLIGATIONS AND DEFENSES OF AFFILIATES.
(a) In any proceeding or claim by the receiver, an affiliate,
controlled or controlling person, or present or former officer,
manager, director, trustee, or shareholder of the insurer may not
assert any defense, unless evidence of the defense was recorded
in the books and records of the insurer at or about the time the
events giving rise to the defense occurred and, if required by
statutory accounting practices and procedures, was timely
reported on the insurer's official financial statements filed
with the department.
(b) An affiliate, controlled or controlling person, or present
or former officer, manager, director, trustee, or shareholder of
the insurer may not assert any claim, unless the obligations were
recorded in the books and records of the insurer at or about the
time the obligations were incurred and, if required by statutory
accounting practices and procedures, were timely reported on the
insurer's official financial statements filed with the
department.
(c) Claims by the receiver against any affiliate, controlled or
controlling person, or present or former officer, manager,
director, trustee, or shareholder of the insurer based on
unrecorded or unreported transactions are not barred by this
section.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.012
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.012
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Sec. 443.013. EXECUTORY CONTRACTS AND UNEXPIRED LEASES. (a)
The receiver may assume or reject any executory contract or
unexpired lease of the insurer.
(b) Neither the filing of a petition commencing delinquency
proceedings under this chapter nor the entry of an order for a
delinquency proceeding constitutes a breach or anticipatory
breach of any contract or lease of the insurer.
(c) If there has been a default in an executory contract or
unexpired lease of the insurer, the receiver may not assume the
contract or lease unless, at the time of the assumption of the
contract or lease, the receiver:
(1) cures or provides adequate assurance that the receiver will
promptly cure the default; and
(2) provides adequate assurance of future performance under the
contract or lease.
(d) Subsection (c) does not apply to a default that is a breach
of a provision relating to:
(1) the insolvency or financial condition of the insurer at any
time before the closing of the delinquency proceeding;
(2) the appointment of or taking possession by a receiver in a
case under this chapter or a custodian before the commencement of
the delinquency proceeding; or
(3) the satisfaction of any penalty rate or provision relating
to a default arising from any failure of the insurer to perform
nonmonetary obligations under the executory contract or unexpired
lease.
(e) A claim arising from the rejection, under this section or a
plan of rehabilitation, of an executory contract or unexpired
lease of the insurer that has not been assumed shall be
determined, treated, and classified as if the claim had arisen
before the date of the filing of a successful petition commencing
the delinquency proceeding.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.013
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.013
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Sec. 443.0135. CONTRACTS FOR SPECIAL DEPUTIES. (a) The
receiver shall use a competitive bidding process in the selection
of any special deputies appointed under Section 443.102 or
443.154. The process must include procedures to promote the
participation of historically underutilized businesses that have
been certified by the comptroller under Section 2161.061,
Government Code.
(b) A proposal submitted in connection with a bid solicitation
under Subsection (a) must describe the efforts that have been
made to include historically underutilized businesses as
subcontractors and the plan for using the historically
underutilized businesses in the administration of the
receivership estate. A special deputy appointed under Section
443.102 or 443.154 shall make a good faith effort to implement
the plan and shall report to the receiver the special deputy's
efforts to identify and subcontract with historically
underutilized businesses.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(f), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.0135
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(f), eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
937, Sec. 1.98, eff. September 1, 2007.
Sec. 443.014. IMMUNITY AND INDEMNIFICATION OF RECEIVER AND
ASSISTANTS. (a) For the purposes of this section, the persons
entitled to immunity and indemnification and those entitled to
immunity only, as applicable, are:
(1) all present and former receivers responsible for the conduct
of a delinquency proceeding under this chapter;
(2) all of the receiver's present and former assistants,
including:
(A) all present and former special deputies and assistant
special deputies engaged by contract or otherwise;
(B) all persons whom the receiver, special deputies, or
assistant special deputies have employed to assist in a
delinquency proceeding under this chapter; and
(C) any state employees acting with respect to a delinquency
proceeding under this chapter; and
(3) all of the receiver's present and former contractors,
including all persons with whom the receiver, special deputies,
or assistant special deputies have contracted to assist in a
delinquency proceeding under this chapter, including attorneys,
accountants, auditors, actuaries, investment bankers, financial
advisors, and any other professionals or firms who are retained
or contracted with by the receiver as independent contractors and
all employees of the contractors.
(b) The receiver, the receiver's assistants, and the receiver's
contractors have immunity under this chapter, as described by
Subsections (c) and (d).
(c) The receiver, the receiver's assistants, and the receiver's
contractors are immune from suit and liability, both personally
and in their representative capacities, for any claim for damage
to or loss of property or personal injury or other civil
liability caused by or resulting from any alleged act, error, or
omission of the receiver or any assistant or contractor that
arises out of or by reason of their duties or employment or is
taken at the direction of the receivership court, providing that
the alleged act, error, or omission is performed in good faith.
(d) Any immunity granted by this section is in addition to any
immunity granted by other law.
(e) The receiver and the receiver's assistants are entitled to
indemnification under this chapter, as described by Subsections
(f)-(l).
(f) If any legal action is commenced against the receiver or any
assistant, whether against the receiver or assistant personally
or in their official capacity, alleging property damage, property
loss, personal injury, or other civil liability caused by or
resulting from any alleged act, error, or omission of the
receiver or any assistant arising out of or by reason of their
duties or employment, the receiver and any assistant are
indemnified from the assets of the insurer for all expenses,
attorney's fees, judgments, settlements, decrees, or amounts due
and owing or paid in satisfaction of or incurred in the defense
of the legal action, unless it is determined upon a final
adjudication on the merits that the alleged act, error, or
omission of the receiver or assistant giving rise to the claim:
(1) did not arise out of or by reason of their duties or
employment; or
(2) was caused by intentional or wilful and wanton misconduct.
(g) Attorney's fees and any and all related expenses incurred in
defending a legal action for which immunity or indemnity is
available under this section must be paid from the assets of the
insurer, as the fees and expenses are incurred, and in advance of
the final disposition of the legal action upon receipt of an
agreement by or on behalf of the receiver or assistant to repay
the attorney's fees and expenses, if it is ultimately determined
upon a final adjudication on the merits that the receiver or
assistant is not entitled to immunity or indemnity under this
section.
(h) Any indemnification for expense payments, judgments,
settlements, decrees, attorney's fees, surety bond premiums, or
other amounts paid or to be paid from the insurer's assets
pursuant to this section are an administrative expense of the
insurer.
(i) In the event of any actual or threatened litigation against
a receiver or any assistant for whom immunity or indemnity may be
available under this section, a reasonable amount of funds, which
in the judgment of the receiver may be needed to provide immunity
or indemnity, must be segregated and reserved from the assets of
the insurer as security for the payment of indemnity until:
(1) all applicable statutes of limitation have run;
(2) all actual or threatened actions against the receiver or any
assistant have been completely and finally resolved; and
(3) all obligations under this section have been satisfied.
(j) Instead of segregating and reserving funds under Subsection
(i), the receiver may, in the receiver's discretion, obtain a
surety bond or make other arrangements that will enable the
receiver to secure fully the payment of all obligations under
this section.
(k) If any legal action against an assistant for whom indemnity
may be available under this section is settled prior to final
adjudication on the merits, the receiver must pay the settlement
amount on behalf of the assistant, or indemnify the assistant for
the settlement amount, unless the receiver determines that the
claim:
(1) did not arise out of or by reason of the assistant's duties
or employment; or
(2) was caused by the intentional or wilful and wanton
misconduct of the assistant.
(l) In any legal action in which a claim is asserted against the
receiver, that portion of any settlement relating to the alleged
act, error, or omission of the receiver is subject to the
approval of the receivership court. The receivership court may
not approve that portion of the settlement if it determines that
the claim:
(1) did not arise out of or by reason of the receiver's duties
or employment; or
(2) was caused by the intentional or wilful and wanton
misconduct of the receiver.
(m) Nothing contained or implied in this section may operate or
be construed or applied to deprive the receiver, the receiver's
assistants, or receiver's contractors of any immunity, indemnity,
benefits of law, rights, or defense otherwise available.
(n) The immunity and indemnification provided to the receiver's
assistants and the immunity provided to the receiver's
contractors under this section do not apply to any action by the
receiver against that person.
(o) Subsection (b) applies to any suit based in whole or in part
on any alleged act, error, or omission that takes place on or
after September 1, 2005.
(p) Subsections (e)-(l) apply to any suit that is pending on or
filed after September 1, 2005, without regard to when the alleged
act, error, or omission took place.
Added by Acts 2005, 79th Leg., Ch.
995, Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.014
by Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.014
by Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(a)(1), eff. September 1, 2007.
Sec. 443.015. APPROVAL AND PAYMENT OF EXPENSES. (a) The
receiver may pay any expenses under contracts, leases, employment
agreements, or other arrangements entered into by the insurer
prior to receivership, as the receiver deems necessary for the
purposes of this chapter. The receiver is not required to pay
any expenses that the receiver determines are not necessary, and
may reject any contract pursuant to Section 443.013.