CHAPTER 444. AGENCY CONTRACTS WITH CERTAIN INSURERS
INSURANCE CODE
TITLE 4. REGULATION OF SOLVENCY
SUBTITLE C. DELINQUENT INSURERS
CHAPTER 444. AGENCY CONTRACTS WITH CERTAIN INSURERS
Sec. 444.001. REQUIRED CONTRACT PROVISION. An agency contract
entered into on or after August 27, 1973, by an insurer writing
fire and casualty insurance in this state must contain, or shall
be construed to contain, the following provision:
Notwithstanding any other provision of this contract, the
obligation of the agent to remit written premiums to the insurer
shall be changed on the commencement of a delinquency proceeding
as defined by Chapter 443, Insurance Code, as amended. After the
commencement of the delinquency proceeding, the obligation of the
agent to remit premiums is limited to premiums earned before the
cancellation date of insurance policies stated in the order of a
court of competent jurisdiction under Chapter 443, Insurance
Code, canceling the policies. The agent does not owe and may not
be required to remit to the insurer or to the receiver any
premiums that are unearned as of the cancellation date stated in
the order.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(rr), eff. September 1, 2007.
Redesignated from Insurance Code, Section 442.801 by Acts 2007,
80th Leg., R.S., Ch.
921, Sec. 9.004(a)(2), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(rr), eff. September 1, 2007.
Sec. 444.002. DISPOSITION OF PREMIUMS. (a) On or after the
cancellation date of insurance policies as stated in the court's
order canceling the policies, the agent shall promptly account to
the receiver for:
(1) all unearned premiums to be returned to the insured or the
replacement coverage to be obtained for the insured; and
(2) the earned premiums to be paid to the receiver.
(b) The agent shall:
(1) promptly return to an insured who paid the premiums any
unearned premiums in the possession of the agent on the
cancellation date of the policy; or
(2) with the approval of the insured, use the unearned premiums
to purchase new coverage for the insured with a different
insurer.
(c) The agent shall promptly remit to the receiver any earned
premiums in the possession of the agent.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Redesignated from Insurance Code, Section 442.802 by Acts 2007,
80th Leg., R.S., Ch.
730, Sec. 3B.004(a)(2), eff. September 1, 2007.
Redesignated from Insurance Code, Section 442.802 by Acts 2007,
80th Leg., R.S., Ch.
921, Sec. 9.004(a)(2), eff. September 1, 2007.
Sec. 444.003. EFFECT OF CHAPTER ON ACTION BY RECEIVER AGAINST
AGENT. This chapter does not prejudice a cause of action by the
receiver against an agent to recover:
(1) unearned premiums that were not returned to policyholders;
or
(2) earned premiums that were not promptly remitted to the
receiver.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(ss), eff. September 1, 2007.
Redesignated from Insurance Code, Section 442.803 by Acts 2007,
80th Leg., R.S., Ch.
921, Sec. 9.004(a)(2), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(ss), eff. September 1, 2007.
Sec. 444.004. AGENT NOT RECEIVER'S AGENT. This chapter does not
render the agent an agent of the receiver for earned or unearned
premiums.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.004(tt), eff. September 1, 2007.
Redesignated from Insurance Code, Section 442.804 by Acts 2007,
80th Leg., R.S., Ch.
921, Sec. 9.004(a)(2), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.004(tt), eff. September 1, 2007.