Texas § 1131.456 PAYMENT OF PROCEEDS.

Texas Statutes

§ 1131.456 — PAYMENT OF PROCEEDS.

Texas § 1131.456

Code INInsurance Code

This text of Texas § 1131.456 (PAYMENT OF PROCEEDS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 1131.456 (2026).

Text

Sec. 1131.456. PAYMENT OF PROCEEDS.

(a)The proceeds of the insurance must be payable to the policyholder.

(b)Payment to the policyholder reduces or extinguishes the debtor's unpaid indebtedness to the extent of the payment. In the case of a debtor under a loan or loan commitment described by Section 1131.455 (b), any insurance proceeds in excess of the indebtedness to the creditor are payable:

(1)to the debtor's estate; or

(2)under a facility of payment clause.

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Sec. 1131.456. PAYMENT OF PROCEEDS. (a) The proceeds of the insurance must be payable to the policyholder.
(b) Payment to the policyholder reduces or extinguishes the debtor's unpaid indebtedness to the extent of the payment. In the case of a debtor under a loan or loan commitment described by Section 1131.455 (b), any insurance proceeds in excess of the indebtedness to the creditor are payable:
(1) to the debtor's estate; or
(2) under a facility of payment clause.