§ 464.053 — ADVANCE OF FUNDS.

Texas § 464.053

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 464.053. ADVANCE OF FUNDS. (a) In the event of a delinquency proceeding of an unauthorized insurer, the commissioner may advance funds from the fund account if the assets of the unauthorized insurer are insufficient to pay administrative expenses or policy claims. The commissioner shall hold the funds in a separate account. Funds advanced under this section are available to supplement the assets of the unauthorized insurer, and do not become property of the unauthorized insurer or the receivership estate.
(b) In determining an amount to be advanced, the commissioner shall consider:
(1) the amount existing in the fund, and any estimated future amounts to be deposited in the fund;
(2) the assets of the unauthorized insurer that are anticipated to be available to pay administrative expenses and claims;
(3) the projected administrative expenses and claims in the delinquency proceeding; and
(4) the projected administrative expenses and claims in other existing and anticipated delinquency proceedings of unauthorized insurers.

Legislative History

Added by Acts 2009, 81st Leg., R.S., Ch. 1026 (H.B. 4339 ), Sec. 1, eff. June 19, 2009.