CHAPTER 2602. TEXAS TITLE INSURANCE GUARANTY ASSOCIATION

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-11-title-insurance > Chapter-2602-texas-title-insurance-guaranty-association

INSURANCE CODE

TITLE 11. TITLE INSURANCE

SUBTITLE C. FINANCIAL SOLVENCY

CHAPTER 2602. TEXAS TITLE INSURANCE GUARANTY ASSOCIATION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2602.001. SHORT TITLE. This chapter may be cited as the

Texas Title Insurance Guaranty Act.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.002. PURPOSES AND FINDINGS. (a) This chapter is for:

(1) the purposes and findings stated in Sections 441.001,

441.003, 441.005, and 441.006;

(2) the protection of holders of covered claims; and

(3) the protection of consumers served by impaired agents.

(b) This chapter and the powers granted and functions authorized

by this chapter shall be exercised to accomplish the purposes of

this chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2I.004, eff. April 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1025, Sec. 2, eff. September 1, 2009.

Sec. 2602.003. DEFINITIONS. In this chapter:

(1) "Affiliate" means a person who, directly or indirectly,

through one or more intermediaries, controls, is controlled by,

or is under common control with an impaired title insurance

company on December 31 of the year preceding the date the company

becomes impaired.

(2) "Agent" includes:

(A) a title insurance agent, as defined by Section 2501.003;

(B) a title attorney, as defined by Section 2552.002; and

owned subsidiary or affiliate that performs the services usually

and customarily performed by a title insurance agent.

(3) "Association" means the Texas Title Insurance Guaranty

Association.

(4) "Board" means the board of directors of the association.

(5) "Impaired agent" means a title agent or direct operation

that is designated by the commissioner as an impaired agent and

is:

(A) placed by a court in this state or another state under an

order of supervision, conservatorship, rehabilitation, or

liquidation;

(B) placed under an order of supervision or conservatorship

under Chapter 441;

Chapter 443; or

(D) otherwise found by a court of competent jurisdiction to be

insolvent or otherwise unable to pay obligations as they come

due.

(6) "Impaired title insurance company" means a title insurance

company that is designated by the commissioner as an impaired

title insurance company and is:

(A) placed by a court in this state or another state under an

order of supervision, conservatorship, rehabilitation, or

liquidation;

(B) placed under an order of supervision or conservatorship

under Chapter 441;

Chapter 443; or

(D) otherwise found by a court of competent jurisdiction to be

insolvent or otherwise unable to pay obligations as they come

due.

(7) "Net direct written premiums" means the gross amount of

premiums paid by policyholders for issuance of title insurance

policies insuring risks located in this state and to which this

chapter applies, without deduction for premiums for reinsurance

ceded to other title insurance companies and not including

premiums for reinsurance accepted from other authorized title

insurance companies.

(8) "Payment of covered claims" means:

(A) the actual payment of claims; or

(B) the use of money of the impaired title insurance company and

money derived from assessments or guaranty fees for consummation

of contracts of reinsurance or assumption of liabilities or

contracts of substitution to provide for liabilities arising from

covered claims.

(9) "Trust funds or escrow accounts" includes accounts subject

to annual audit under Subchapter D, Chapter 2651.

(10) "Unauthorized insurer" means a person, firm, association,

or corporation that has engaged in activities prohibited by

Subchapter C, Chapter 101, while engaging in the business of

title insurance.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1025, Sec. 3, eff. September 1, 2009.

Sec. 2602.004. DESCRIPTION OF CONTROL. (a) For purposes of

this chapter, control is the power to direct, or cause the

direction of, the management and policies of a person, other than

power that results from an official position with or corporate

office held by the person. The power may be possessed directly or

indirectly by any means, including through the ownership of

voting securities or by contract, other than a commercial

contract for goods or nonmanagement services.

(b) A person is presumed to control another person if the person

directly or indirectly owns, controls, holds with the power to

vote, or holds proxies representing 10 percent or more of the

voting securities of the other person. This presumption may be

rebutted by a showing that the person does not in fact control

the other person.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.005. APPLICABILITY; CONFLICT WITH OTHER LAWS. (a)

This chapter applies to:

(1) a title insurance company engaging in business under this

title;

(2) all title insurance, direct or reinsurance, written by a

title insurance company engaging in business under this title;

and

(3) trust funds or escrow accounts of:

(A) title insurance companies engaging in business under this

title; or

(B) agents authorized to engage in business in this state and

engaging in business under and governed by this title.

(b) If this chapter conflicts with another law relating to the

subject matter of this chapter or its application, other than

Chapter 441 or 443, this chapter controls. If this chapter

conflicts with Chapter 441 or 443, that chapter controls.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2I.005, eff. April 1, 2009.

Sec. 2602.006. CONSTRUCTION. (a) This chapter shall be

liberally construed to implement the purposes of this chapter

described by Section 2602.002, which shall be used to aid and

guide interpretation of this chapter.

(b) This chapter does not:

(1) expand or diminish a right or obligation between or among

policyholders, title insurance companies, or agents; or

(2) require a person to assign, waive, or relinquish a claim,

right, or cause of action arising under Chapter 541 of this code

or Subchapter E, Chapter 17, Business & Commerce Code.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.007. PROHIBITED USE OF PROTECTION PROVIDED BY CHAPTER.

(a) A title insurance company or agent may not advertise or

refer to this chapter as an inducement to the purchase of title

insurance.

(b) The use by a person of the protection provided by this

chapter in the sale of insurance is unfair competition and an

unfair practice under Chapter 541.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.008. IMMUNITY. (a) Liability does not exist and a

cause of action does not arise against any of the following

persons for a good faith action or omission of the person in

exercising the person's powers and performing the person's duties

under this chapter:

(1) the commissioner or the commissioner's representative;

(2) the association or the association's agent or employee;

(3) a title insurance company or the company's agent or

employee;

(4) a board member; and

(5) a special deputy receiver or the special deputy receiver's

agent or employee.

(b) The attorney general shall defend any action to which

Subsection (a) applies that is brought against a person listed in

that subsection, including an action instituted after the

defendant's service with the association, commissioner, or

department has terminated. This subsection does not require the

attorney general to defend a person or entity with respect to an

issue other than the applicability or effect of the immunity

created by Subsection (a). The attorney general is not required

to defend a person listed in Subsection (a)(2), (3), (4), or (5)

against an action regarding the disposition of a claim filed with

the association under this chapter or any issue other than the

applicability or effect of the immunity created by Subsection

(a). The association may contract with the attorney general under

Chapter 771, Government Code, for legal services not covered by

this subsection.

policies of an impaired title insurance company is not liable,

and a cause of action does not arise against that company:

(1) for an action or omission by the impaired title insurance

company or an officer, director, employee, attorney, or agent of

the impaired title insurance company;

(2) by subrogation; or

(3) under any type of indemnity agreement.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.009. ASSOCIATION AND TITLE INSURANCE COMPANIES AS

INTERESTED PARTIES. The association and each title insurance

company assessed under this chapter are interested parties under

Sections 3(h) and 12(b), Article 21.28.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.010. RULES. The commissioner shall adopt reasonable

rules as necessary to implement and supplement this chapter and

its purposes.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.011. INFORMATION PROVIDED BY AND TO COMMISSIONER. (a)

The commissioner shall notify the association of the existence

of an impaired title insurance company or impaired agent not

later than the third day after the date on which the commissioner

gives notice of the designation of impairment to the impaired

agent or impaired title insurance company. The association is

entitled to a copy of any complaint seeking an order of

receivership with a finding of insolvency against a title

insurance company at the time the complaint is filed with a

court.

(b) The commissioner shall notify the board when the

commissioner receives a report from the commissioner of insurance

or other analogous officer of another state that indicates that a

title insurance company has been designated impaired in another

state. The report to the board must contain all significant

details of the action taken or the report received.

commissioner has reasonable cause to believe from a completed or

continuing examination of any title insurance company that the

company may be an impaired title insurance company. The board may

use this information in performing its duties under this chapter.

The board shall keep the report and the information contained in

the report confidential until it is made public by the

commissioner or other lawful authority.

(d) On the board's request, the commissioner shall provide the

association with a statement of the net direct written premiums

of each title insurance company.

(e) The commissioner may require that the association notify the

insureds of the impaired title insurance company and any other

interested party of the designation of impairment and of the

person's rights under this chapter. Notification by publication

in a newspaper of general circulation is sufficient notice under

this section.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1025, Sec. 4, eff. September 1, 2009.

Sec. 2602.012. APPEALS. (a) A title insurance company may

appeal to the commissioner an action or ruling of the association

relating to an assessment.

(b) An action or ruling of the commissioner under this chapter

may be appealed as provided by Subchapter D, Chapter 36.

the assessment. The association may use the money to meet its

obligations while the appeal is pending. If the appeal on the

assessment is upheld, the association shall return to the company

the amount paid in error or excess.

(d) Venue in a suit relating to an action or ruling under this

chapter is in Travis County. Each party to the action may appeal,

and the appeal is at once returnable to the appellate court and

has precedence over all cases of a different character pending

before the court. The commissioner or association is not required

to give an appeal bond in an appeal of a cause of action arising

under this chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER B. GOVERNANCE OF TEXAS TITLE INSURANCE GUARANTY

ASSOCIATION

Sec. 2602.051. ASSOCIATION AS LEGAL ENTITY; SUPERVISION;

MEMBERSHIP. (a) The Texas Title Insurance Guaranty Association

is a nonprofit legal entity.

(b) The association is subject to the applicable insurance laws

of this state and the immediate supervision of the commissioner.

title insurance in this state unless the company is a member of

the association.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.052. BOARD OF DIRECTORS. (a) The association's

powers are exercised through a board of directors consisting of

nine individuals appointed by the commissioner.

(b) Three board members must be officers or employees of title

insurance companies. Two board members must be officers or

employees of agents. Four board members must be public

representatives.

chosen to give fair representation to all title insurance

companies and agents, considering the following categories:

(1) premium income;

(2) geographical location; and

(3) segments of the industry represented in this state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.053. ELIGIBILITY TO SERVE AS PUBLIC REPRESENTATIVE.

(a) In this section, "immediate family" includes parents, a

spouse, children, brothers, and sisters residing in the same

household.

(b) To be eligible to serve as a public representative on the

board, an individual must have resided in this state during the

five years preceding appointment and may not be:

(1) licensed by or subject to the regulation of the department;

(2) financially involved in an organization subject to the

regulation of the department other than by ownership of an

insurance policy or contract;

(3) a member of the immediate family of an individual who is

financially involved in an organization subject to the regulation

of the department;

(4) engaged in or employed by an entity having a contract with

an organization subject to the regulation of the department;

(5) employed by, on the board of directors of, or a holder of an

elective office by or under the authority of a unit of federal,

state, or local government or an organization that receives a

significant part of its funding from a unit of federal, state, or

local government;

(6) employed by or associated with an organization formed to

represent license holders of the department or organizations or

individuals subject to the regulation of the department; or

(7) required to register as a lobbyist under Chapter 305,

Government Code, because of activities on behalf of an

organization representing the regulated industry.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.054. TERM; VACANCY. (a) Board members serve

staggered six-year terms, with the terms of three members

expiring each odd-numbered year. A member may serve more than one

term.

(b) A member shall serve until a successor is appointed.

an officer or employee of a title insurance company or agent, the

member's office becomes vacant.

(d) The commissioner shall appoint an individual to fill a

vacancy on the board for the unexpired term.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.055. COMPENSATION OF BOARD MEMBERS. A board member

may not receive compensation for the member's services but is

entitled to reimbursement for actual expenses incurred in

performing the member's duties.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.057. RIGHTS OF TITLE INSURANCE COMPANY WITH

REPRESENTATIVE ON BOARD. (a) A title insurance company is not

prohibited, because the company has an officer, director, or

employee serving as a board member, from negotiating for or

entering into a contract of reinsurance or assumption of

liability or a contract of substitution to provide for

liabilities for covered claims with the receiver or conservator

of an impaired title insurance company or agent.

(b) A conflict of interest does not arise from entering into a

contract described by this section.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER C. GENERAL POWERS AND DUTIES OF ASSOCIATION

Sec. 2602.101. GENERAL POWERS AND DUTIES. (a) In addition to

the other powers and duties provided by this chapter, the

association may:

(1) borrow money as necessary to implement this chapter

according to the plan of operation;

(2) lend money to an impaired title insurance company;

(3) sue and be sued, including taking any legal action necessary

or proper to recover an unpaid assessment;

(4) enter into contracts as necessary or proper to implement

this chapter;

(5) ensure payment of the policy obligations of an impaired

title insurance company;

(6) negotiate and contract with a rehabilitator, conservator,

receiver, or ancillary receiver to exercise the powers and

perform the duties of the association;

(7) guarantee, assume, or reinsure, or cause to be guaranteed,

assumed, or reinsured, a policy or contract of an impaired title

insurance company;

(8) take legal action necessary to avoid the payment of improper

claims or to settle claims or potential claims against an

impaired title insurance company or the association; and

(9) perform any other acts as necessary or proper to implement

this chapter.

(b) The association has standing to appear before a court in

this state with jurisdiction over an impaired title insurance

company or agent concerning which the association is or may

become obligated under this chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.102. PLAN OF OPERATION. (a) The association shall

perform its functions under a plan of operation. The plan of

operation must contain provisions necessary or proper for the

execution of the association's powers and duties. The plan of

operation must, in addition to the other requirements of this

chapter:

(1) establish:

(A) procedures for handling the assets of the association;

(B) the amount and method of reimbursing board members;

(D) procedures for maintaining records of all financial

transactions of the association, its agents, and the board; and

(E) procedures for determining the amount of guaranty fees, for

collecting those fees, and for assessments; and

(2) contain additional provisions necessary or proper for the

execution of the association's powers and duties.

(b) The association shall submit to the commissioner any

amendment to the plan of operation necessary or suitable to

ensure the fair, reasonable, and equitable administration of the

association. The amendment takes effect on the commissioner's

written approval.

the plan of operation, the commissioner after notice and hearing

may adopt reasonable rules as necessary or advisable to implement

this chapter. A rule continues in effect until modified by the

commissioner or superseded by an amendment submitted by the

association and approved by the commissioner.

(d) Each title insurance company shall comply with the plan of

operation.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.103. EMPLOYEES AND EXPERTS. (a) The association may

employ or retain persons to perform the functions necessary or

proper under this chapter, including persons necessary to handle

the association's financial transactions.

(b) On the commissioner's request, the association shall retain

one or more persons to:

(1) audit and review agent escrow and trust accounts, financial

condition, and compliance with applicable statutes and rules; and

(2) report to the commissioner on the accounts, condition, and

compliance.

direction of and as assigned by the commissioner.

(d) From the guaranty fee account, the association shall

compensate a person retained under Subsection (b) and reimburse

the person for the person's reasonable and necessary expenses.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.104. ASSOCIATION RECORDS. (a) The association shall

maintain a record of each negotiation or meeting in which the

association or the association's representative discusses the

association's activities in exercising its powers and performing

its duties under this chapter.

(b) A record under Subsection (a) may be made public only on:

(1) termination of a liquidation, rehabilitation, or

conservation proceeding involving the impaired or insolvent title

insurance company;

(2) termination of the impairment or insolvency of the title

insurance company; or

(3) order of a court.

on its activities under this chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.105. MEETING BY CONFERENCE CALL. Notwithstanding

Chapter 551, Government Code, the board may hold an open meeting

by telephone conference call if immediate action is required and

convening of a quorum of the board at a single location is not

reasonable or practical. The meeting is subject to the notice

requirements that apply to other meetings. The notice of the

meeting must specify as the location of the meeting the location

at which meetings of the board are usually held, and each part of

the meeting that is required to be open to the public must be

audible to the public at that location and must be tape-recorded.

The tape recording shall be made available to the public for 30

days after the meeting date.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.106. ACCOUNTS. For purposes of administration and

assessment, the board shall establish:

(1) an administrative account;

(2) a title account; and

(3) a guaranty fee account.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.107. ADMINISTRATIVE EXPENSES. (a) The association

may use money in the administrative account to pay administrative

costs and other general expenses of the association.

(b) The association may transfer income from investment of the

association's money to the administrative account.

provided by Subchapter E for any additional money needed for the

administrative account.

(d) The association shall pay from the guaranty fee account fees

and reasonable and necessary expenses that the department incurs

in an examination or audit of a title agent or direct operation

under this chapter and Chapter 2651.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1025, Sec. 5, eff. September 1, 2009.

Sec. 2602.108. DEPOSIT OF FEES AND ASSESSMENTS. The association

may deposit fees and assessments it collects into the Texas

Treasury Safekeeping Trust Company in accordance with procedures

established by the comptroller. The comptroller shall account to

the association for the deposited money separately from all other

money.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.109. USE OF EXCESS MONEY IN ACCOUNTS. (a) If the

association determines that money in the title account exceeds

the amount reasonably necessary for efficient future operation

under this chapter, the association shall return the excess money

pro rata to the holders of participation receipts on which an

outstanding balance exists after deducting any credits against

premium taxes taken under Section 2602.210. The amount deducted

for those credits shall be deposited with the comptroller for

credit to the general revenue fund. The association shall

transfer to the guaranty fee account any excess money remaining

in the title account after the distribution.

(b) If the association determines that money in the

administrative account exceeds the amount reasonably necessary

for efficient future operation under this chapter, the

association shall transfer the excess money to the guaranty fee

account.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.110. EXPENSES OF ADMINISTERING IMPAIRED INSURER OR

IMPAIRED AGENT. The association may advance money necessary to

pay the expenses of administering the supervision,

rehabilitation, receivership, conservatorship, or, as determined

by a court of competent jurisdiction, other insolvency of an

impaired title insurance company or impaired agent, on terms the

association negotiates, if the company's or agent's assets are

insufficient to pay those expenses.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1025, Sec. 6, eff. September 1, 2009.

Sec. 2602.111. DELEGATION OF POWERS AND DUTIES. (a) The plan

of operation may provide that, on approval of the board and the

commissioner, a power or duty of the association may be delegated

to a corporation or other organization that:

(1) performs or will perform in two or more states functions

similar to those of the association or its equivalent; and

(2) provides protection not substantially less favorable and

effective than that provided by this chapter.

(b) A power or duty under Section 2602.101(a)(1) or (4),

2602.107, 2602.201, 2602.202, 2602.203, or 2602.205 may not be

delegated under this section.

(1) reimbursed as a servicing facility would be reimbursed; and

(2) paid for its performance of any other functions of the

association.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.112. EXEMPTION FROM TAXATION. The association is

exempt from payment of all fees and all taxes levied by this

state or a subdivision of this state, except taxes levied on real

or personal property.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.113. DETECTION AND PREVENTION OF IMPAIRMENT. (a) The

board may make recommendations to the commissioner for detecting

and preventing title insurance company or agent impairments. The

board shall advise and counsel with the commissioner on matters

relating to the solvency of title insurance companies and agents.

(b) The board may report and make recommendations to the

commissioner relating to any matter germane to the solvency,

liquidation, rehabilitation, or conservation of a title insurance

company or agent. A report or recommendation under this

subsection is not a public document until a title insurance

company is designated impaired.

indicating that a title insurance company or agent may be unable

or potentially unable to fulfill its contractual obligations and

shall request a meeting with the commissioner. The board may

request appropriate investigation and action by the commissioner.

The commissioner may investigate and act as the commissioner

considers appropriate.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.114. MEETING OF BOARD ON IMPAIRED TITLE INSURANCE

COMPANY OR AGENT. (a) The commissioner:

(1) shall call a meeting of the board when the commissioner

determines that a title insurance company or agent is insolvent

or impaired; and

(2) may call a meeting of the board when the commissioner

determines that a title insurance company or agent is in danger

of becoming insolvent or impaired.

(b) The meeting is not open to the public. Only board members,

the commissioner, and persons the commissioner authorizes may

attend the meeting.

employee of the title insurance company or agent to appear before

the board for conference or to give testimony.

(d) At the meeting the commissioner may disclose to the board

information that the commissioner possesses and may disclose

department records, including an examination report or a

preliminary report from an examiner that relates to the title

insurance company or agent.

(e) A board member may not disclose information received in the

meeting unless authorized by the commissioner or required as

witness in court. A board member and the meeting are subject to

the confidentiality standard imposed on an examiner under

Sections 401.105 and 401.106, except that a bond is not required

of a board member.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2I.006, eff. April 1, 2009.

Sec. 2602.115. ASSOCIATION AND BOARD ADVICE AND ASSISTANCE. (a)

On the commissioner's request, the board shall attend hearings

before the commissioner and meet with and advise the commissioner

or the receiver or the conservator appointed by the commissioner

on matters relating to:

(1) the affairs of an impaired title insurance company or agent;

(2) action that the commissioner, receiver, or conservator may

take to best protect the interest of holders of covered claims

against the company or agent; and

(3) the marshalling of assets.

(b) On the commissioner's request, the association may assist

and advise the commissioner concerning rehabilitation, payment of

claims, continuation of coverage, or the performance of other

contractual obligations of an impaired title insurance company or

agent.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.116. BOARD ACCESS TO RECORDS. The receiver or

statutory successor of an impaired title insurance company shall

give the board or its representative:

(1) access to the company's records as necessary for the board

to perform its functions under this chapter relating to covered

claims; and

(2) copies of those records on the board's request and at the

board's expense.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.117. BOARD REPORT AT CONCLUSION OF IMPAIRMENT. At the

conclusion of a title insurance company or agent impairment in

which the association exercised its powers or performed its

duties under this chapter, the board shall prepare, from

information available to the association, and submit to the

commissioner a report on the history and causes of the

impairment.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER D. POLICY GUARANTY FEES

Sec. 2602.151. PAYMENT OF FEE. (a) An agent or, if there is no

agent, the title insurance company shall pay the association a

quarterly guaranty fee for each owner or mortgagee title

insurance policy that the agent or company is required to report

on its statistical report to the department.

(b) The fee is due:

(1) May 1, for the quarter ending March 31;

(2) August 1, for the quarter ending June 30;

(3) November 1, for the quarter ending September 30; and

(4) February 1, for the quarter ending December 31.

account.

(d) Except as provided by Section 2602.109, money in the

guaranty fee account shall be derived only from guaranty fees as

provided by this subchapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.152. AMOUNT OF FEE. Annually or more frequently, the

board shall determine the amount of the guaranty fee, considering

the amount of money to be maintained in the guaranty fee account

that is reasonably necessary for efficient future operation under

this chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1025, Sec. 7, eff. September 1, 2009.

Sec. 2602.153. USE OF FEE. (a) The association shall collect,

receive, retain, and disburse the guaranty fees only as

specifically provided by this chapter.

(b) The following claims shall be paid from guaranty fees only

and may not be paid from assessments:

(1) covered claims against trust funds or an escrow account of

an impaired agent under Section 2602.252;

(2) expenses incurred in complying with Subchapter J;

(3) conservator and receiver expenses under Section 2602.254;

and

(4) administrative expenses with respect to the estate of an

impaired agent under Section 2602.110.

eff. September 1, 2009.

(d) Guaranty fees may be used only for payment of:

(1) claims described by Subsection (b); and

(2) expenses related to:

(A) an audit or an examination conducted by the department or

the association under this chapter;

(B) the supervision and coordination of such an audit or

examination; and

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1025, Sec. 8, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1025, Sec. 18, eff. September 1, 2009.

Sec. 2602.154. ENFORCEMENT OF FEE. (a) After notice and

opportunity for hearing, the commissioner may suspend or revoke

the certificate of authority or license to engage in business in

this state of a title insurance company or agent that does not

comply with this subchapter.

(b) The commissioner shall adopt rules that implement the

program created under this subchapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER E. ASSESSMENTS

Sec. 2602.201. MAKING OF ASSESSMENT. (a) If the commissioner

determines that a title insurance company or agent has become

impaired, the association shall promptly estimate the amount of

additional money needed to supplement the assets of the impaired

title insurance company or agent to pay all covered claims and

administrative expenses.

(b) The association shall assess title insurance companies in

writing an amount as determined under Section 2602.202. A title

insurance company does not incur real or contingent liability

under this chapter until the association actually makes the

written assessment.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.202. AMOUNT OF ASSESSMENT; PRORATION OF PAYMENT. (a)

The association shall assess title insurance companies the amount

necessary to pay:

(1) the association's obligations under this chapter and the

expenses of handling covered claims subsequent to an impairment;

and

(2) other expenses authorized by this chapter.

(b) The assessment of each title insurance company must be in

the proportion that the net direct written premiums of that

company for the calendar year preceding the assessment bear to

the net direct written premiums of all title insurance companies

for that year.

may not exceed an amount equal to two percent of the company's

net direct written premiums for the calendar year preceding the

assessment. If the maximum assessment and the association's other

assets are insufficient in any one year to make all necessary

payments, the money available shall be prorated and the unpaid

portion shall be paid as soon as money becomes available.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.203. NOTICE AND PAYMENT. (a) Not later than the 30th

day before the date an assessment is due, the association shall

notify the title insurance company.

(b) Not later than the 30th day after the date an assessment is

made, the title insurance company shall pay the association the

amount of the assessment.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.204. EXEMPTION FOR IMPAIRED TITLE INSURANCE COMPANY.

A title insurance company is exempt from assessment during the

period beginning on the date the commissioner designates the

company as an impaired title insurance company and ending on the

date the commissioner determines that the company is no longer an

impaired title insurance company.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.205. DEFERMENT. (a) The association may defer in

whole or in part an assessment of a title insurance company that

would cause the company's financial statement to show amounts of

capital or surplus less than the minimum amount required for a

certificate of authority in any jurisdiction in which the company

is authorized to engage in the business of insurance.

(b) The title insurance company shall pay the deferred

assessment when payment will not reduce capital or surplus below

required minimums. The payment shall be refunded to or credited

against future assessments of any title insurance company

receiving a larger assessment because of the deferment, as

elected by that company.

may not pay a dividend to shareholders or policyholders.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.206. PARTICIPATION RECEIPTS. (a) On receipt from a

title insurance company of payment of an assessment or partial

assessment, the association shall provide the company with a

participation receipt. A participation receipt creates liability

against the impaired title insurance company.

(b) The holder of the receipt is a general creditor of the

impaired title insurance company, except that if the amount of

assessments the association receives exceeds the amount paid for

covered claims, the holders of participation receipts have

preference over other general creditors to, and are entitled to

share pro rata in, the excess.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.207. ACCOUNTING; REPORTS; REFUND. (a) The

association shall adopt accounting procedures to show how money

received from assessments or partial assessments is used.

(b) The association shall make interim accounting reports as the

commissioner requires.

commissioner showing how money received from assessments or

partial assessments has been used, including a statement of any

final balance of that money. As soon as practicable after

completion of the final report, the association shall refund the

remaining balance to the holders of participation receipts as

required by Section 2602.206(b).

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.208. USE OF ASSESSMENTS. (a) Money from assessments

is considered to supplement the marshalling of an impaired title

insurance company's assets to make payments on the impaired title

insurance company's behalf. The association may assess title

insurance companies or use money from assessments to pay covered

claims before the receiver exhausts the impaired title insurance

company's assets.

(b) The association may use money from assessments to negotiate

and consummate contracts of reinsurance or assumption of

liabilities or contracts of substitution to provide for

outstanding liabilities of covered claims.

assessments may not be used for the guaranty fee account.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.209. FAILURE TO PAY; COLLECTION BY COMMISSIONER. (a)

The association shall promptly report to the commissioner a

failure of a title insurance company to pay an assessment when

due.

(b) On failure of a title insurance company to pay an assessment

when due, the commissioner may either:

(1) suspend or revoke, after notice and hearing, the company's

certificate of authority to engage in business in this state; or

(2) assess an administrative penalty as provided by Chapter 84

in an amount not to exceed the greater of five percent of the

unpaid assessment each month or $100 each month.

canceled or surrendered is liable for any unpaid assessments made

before the date of the cancellation or surrender.

(d) The commissioner may collect an assessment on behalf of the

association through a suit brought for that purpose.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.210. RECOVERY OF ASSESSMENT IN RATES; TAX CREDIT. (a)

A title insurance company is entitled to recover in its rates

for the succeeding calendar year amounts paid in assessments not

to exceed one percent of the company's net direct written

premiums. In promulgating or establishing rates the commissioner

shall consider assessments and refunds of assessments and shall

adjust the rates to allow for recovery under this subsection.

(b) Unless the department determines that all amounts paid as

assessments by each title insurance company have been recovered

under Subsection (a), for any amount not recovered the title

insurance company is entitled to a credit against its premium tax

under Chapter 223. The credit may be taken at a rate of 20

percent each year for five successive years following the date of

assessment and, if the title insurance company elects, may be

taken over an additional number of years.

unclaimed may be shown in the title insurance company's books and

records as an admitted asset for all purposes, including an

annual statement under Section 862.001.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER F. COVERED CLAIMS

Sec. 2602.251. COVERED CLAIMS IN GENERAL. An unpaid claim is a

covered claim if:

(1) the claim is made by an insured under a title insurance

policy to which this chapter applies;

(2) the claim arises out of the policy and is within the

coverage and applicable limits of the policy;

(3) the title insurance company that issued the policy or

assumed the policy under an assumption certificate is an impaired

title insurance company; and

(4) the insured real property or a lien on the property is

located in this state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.252. CLAIM AGAINST TRUST FUNDS OR ESCROW ACCOUNT. An

unpaid claim is a covered claim if the claim:

(1) is against trust funds or an escrow account of an impaired

title insurance company or agent; and

(2) is unpaid because of a shortage of those funds or in that

account.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.253. CLAIM IN CONNECTION WITH FIDELITY OF AGENT. An

unpaid claim is a covered claim if an impaired title insurance

company is liable for the claim in connection with the fidelity

of the company's agent as authorized by Subchapter A, Chapter

2702.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.254. CERTAIN CONSERVATOR AND RECEIVER EXPENSES

COVERED. Reasonable and necessary administrative expenses

incurred by a conservator appointed by the commissioner or a

receiver appointed by a court for an unauthorized insurer

operating in this state are covered claims if the commissioner

has notified the association or the association has otherwise

become aware that:

(1) the unauthorized insurer has insufficient liquid assets to

pay those expenses; and

(2) insufficient money is available from:

(A) abandoned money under Section 443.304; and

(B) department appropriations for use in paying those expenses.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2I.007, eff. April 1, 2009.

Sec. 2602.255. CLAIMS NOT COVERED. The following are not

covered claims:

(1) an amount due a reinsurer, title insurance company,

insurance pool, or underwriting association as a subrogation

recovery or otherwise;

(2) a supplementary payment obligation incurred before a

determination is made under this chapter that a title insurance

company or agent is impaired, including:

(A) adjustment fees or expenses;

(B) attorney's fees or expenses;

(D) interest;

(E) enhanced damages, sought as a recovery against the insured,

the impaired title insurance company or agent, or the

association, that arise under Chapter 541 of this code or

Subchapter E, Chapter 17, Business & Commerce Code; and

(F) bond premiums;

(3) a shortage of trust funds or in an escrow account resulting

from the insolvency of a financial institution;

(4) exemplary, extracontractual, or bad faith damages awarded

against an insured or title insurance company by a court

judgment;

(5) a claim under Section 2602.252 by a claimant who has a lien

against the real property that was the subject of the transaction

from which the claim arises, unless the lien is held to be

invalid as a matter of law;

(6) a claim under Section 2602.251, 2602.252, or 2602.253 by a

claimant who caused or substantially contributed to the

claimant's loss by the claimant's action or omission; and

(7) a claim filed with the association after the final date set

by the court for the filing of claims against a receiver of an

impaired title insurance company or agent.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.256. AMOUNT OF COVERED CLAIM; LIMIT. (a) A covered

claim under Section 2602.251 or 2602.253 may not exceed the

lesser of $250,000 for each claimant or $250,000 for each policy.

(b) A covered claim under Section 2602.252 may not exceed the

lesser of $250,000 for each claimant or the amount of money

actually delivered to the impaired title insurance company or

agent as trust funds or an escrow account for each claimant in a

transaction from which the claim arises, except that the

cumulative amount of covered claims arising from a single

transaction may not exceed $250,000.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.257. EXHAUSTION OF OTHER RIGHTS REQUIRED. (a) A

person having a covered claim that is also a claim against a

title insurance company under law or under an insurance policy

other than a policy of an impaired title insurance company must

exhaust the person's rights under law or the policy before

asserting the covered claim under this chapter.

(b) The amount payable on the covered claim is reduced by the

amount of any recovery under law or the policy.

to a claimant the association may authorize payment of a covered

claim against an impaired agent without regard to the liability

of any title insurance company or coverage under any insurance

policy, subject to the approval of the receivership court or

commissioner, as applicable. On payment, the association is in

all respects subrogated to the rights and claims of the claimant.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.258. CERTAIN MONEY AUTHORIZED FOR USE IN PAYING

COVERED CLAIM; LIMIT. (a) Money from assessments or guaranty

fees is liable only for the difference between the amount of

covered claims and the amount of assets marshalled by a receiver

or conservator for payment to holders of covered claims.

(b) In an ancillary receivership in this state, money from

assessments is liable only for the difference between the amount

of covered claims and the amount of assets marshalled by

receivers in other states for payment of covered claims in this

state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.259. STAY OF PROCEEDINGS; CERTAIN DECISIONS NOT

BINDING. (a) To permit the receiver or association to properly

defend a pending cause of action, a proceeding in which an

impaired title insurance company is a party or is obligated to

defend a party in a court in this state, other than a proceeding

directly related to the receivership or instituted by the

receiver, is stayed for:

(1) a six-month period beginning on the later of the date of the

designation of impairment or the date an ancillary proceeding is

brought in this state; and

(2) any subsequent period as determined by the court.

(b) If a covered claim arises from a judgment, order, verdict,

finding, or other decision based on the default of an impaired

title insurance company or its failure to defend an insured, the

association on its own behalf or on behalf of the insured may

apply to the court or administrator that made the decision to

have the decision set aside and may defend the claim on its

merits.

against an insured taken after the date the delinquency

proceeding begins or a conservator is appointed is not evidence

of liability or of the amount of damages, and a default or

consent judgment against an insured or the impaired title

insurance company or a settlement, release, or judgment entered

into by the insured or the impaired title insurance company does

not bind the association and is not evidence of liability or of

the amount of damages in connection with a claim brought against

the association or another party under this chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.260. ADMISSIBILITY OF PAYMENT. In a lawsuit brought

by a conservator or receiver of an impaired title insurance

company or agent to recover assets of the company or agent, the

fact that a claim against the company or agent has been or will

be paid under this chapter is not admissible and may not be

placed before a jury by evidence, argument, or reference.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER G. ASSOCIATION POWERS AND DUTIES RELATING TO COVERED

CLAIMS

Sec. 2602.301. GENERAL POWERS AND DUTIES OF ASSOCIATION IN

CONNECTION WITH PAYMENT OF COVERED CLAIMS. (a) The association

shall:

(1) investigate a claim brought against the association, the

commissioner, or a special deputy receiver appointed under

Chapter 443 if the claim involves or may involve the

association's rights and obligations under this chapter; and

(2) adjust, compromise, settle, and pay a covered claim to the

extent of the association's obligation, and deny all other

claims.

(b) The association may review a settlement, release, or

judgment to which an impaired title insurance company or agent or

its insured was a party to determine the extent to which the

settlement, release, or judgment is contested.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2I.008, eff. April 1, 2009.

Sec. 2602.302. PAYMENT OF COVERED CLAIMS. (a) The association

shall pay covered claims:

(1) existing before the determination of impairment; or

(2) arising on or before:

(A) the date of cancellation of the impaired title insurance

company's policies; or

(B) the claim deadline for covered claims against an impaired

agent.

(b) The court in which the receivership proceedings are pending

shall set, as applicable:

(1) the date of cancellation of the policies, which may not be

later than the fifth anniversary of the date of determination of

impairment; or

(2) the claim deadline, which may not be later than the first

anniversary of the date of determination of impairment.

shall establish:

(1) procedures for filing claims with the association; and

(2) acceptable forms of proof of covered claims.

(d) The association shall pay claims in the order the

association considers reasonable, including payment as claims are

received from the claimants or in groups or categories of claims.

(e) The association may not pay a claimant an amount exceeding

the amount of the claimant's covered claim.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.303. SERVICING FACILITY. (a) The association may

handle claims through its employees or through one or more title

insurance companies or other persons designated, subject to the

approval of the commissioner, as a servicing facility.

(b) A title insurance company may decline designation as a

servicing facility.

(1) obligations of the association paid by the facility; and

(2) expenses incurred by the facility in handling claims for the

association.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.304. ADVANCE AS LOAN. Money advanced by the

association under this chapter is considered a special fund loan

to the impaired title insurance company or agent for payment of

covered claims and does not become an asset of the title

insurance company or agent. The loan is repayable to the extent

money from the title insurance company or agent is available.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.305. ASSOCIATION IN PLACE OF IMPAIRED TITLE INSURANCE

COMPANY OR AGENT. (a) To the extent of the association's

obligation on a covered claim, the association stands in the

place of the impaired title insurance company or agent and has

all the rights, duties, and obligations of the company or agent

as if the company or agent were not impaired.

(b) In performing its obligations under this chapter, the

association is not considered:

(1) to be engaged in the business of insurance;

(2) to have assumed or succeeded to a liability of the impaired

title insurance company or agent; or

(3) to otherwise stand in the place of the impaired title

insurance company or agent, including as to whether the

association is subject to personal jurisdiction of the courts of

another state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.306. ASSIGNMENT OF CLAIMANT'S RIGHTS. (a) Any cause

of action or other right of the holder of a covered claim arising

from the occurrence on which the claim is based is assigned to

the association on the holder's acceptance of:

(1) the association's payment of the claim; or

(2) a benefit of a contract by the association providing for

reinsurance or assumption of liabilities or for substitution.

(b) Rights are assigned to the association under Subsection (a)

to the extent of the amount accepted or the value of the benefit

provided.

section to the title insurance company executing the reinsurance,

assumption, or substitution agreement.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.307. SETTLEMENT BY ASSOCIATION BINDING; PRIORITY OF

CLAIM AND EXPENSES. (a) The settlement of a covered claim by

the association binds the receiver or statutory successor of an

impaired title insurance company.

(b) The court shall give the covered claim the same priority

against assets of the impaired title insurance company that the

claim would have had in the absence of this chapter.

priority as the receiver's expenses.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.308. REPORT TO RECEIVER. The association shall

periodically file with the receiver of an impaired title

insurance company a statement of covered claims paid by the

association and an estimate of claims anticipated against the

association. The statement preserves the rights of the

association against the assets of the company.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

SUBCHAPTER H. CONSERVATOR OR RECEIVER POWERS AND DUTIES RELATING

TO COVERED CLAIMS

Sec. 2602.351. DETERMINATION OF CONSERVATOR CONCERNING

REINSURANCE, ASSUMPTION, OR SUBSTITUTION. A conservator

appointed to handle the affairs of an impaired title insurance

company or agent shall determine whether covered claims should or

can be provided for in whole or in part by reinsurance,

assumption, or substitution.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.352. NOTICE OF DETERMINATION CONCERNING ACTUAL

PAYMENT. (a) On determination by the conservator that covered

claims should be actually paid, the conservator shall give notice

of the determination to holders of covered claims.

(b) The conservator shall mail the notice to each holder of a

covered claim at the most recent address shown in the impaired

title insurance company's or agent's records, except that if

those records do not show the claimant's address the conservator

may give notice by publication in a newspaper of general

circulation.

after the date of the mailing or publication of the notice,

before which the claimant must file a claim with the conservator.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.353. FILING OF COVERED CLAIM. The conservator may

require in whole or in part that claimants file:

(1) sworn claim forms; and

(2) additional information or evidence reasonably necessary for

the conservator to determine the legality of or amount due under

a covered claim.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1,

2005.

Sec. 2602.354. CLAIM BY PERSON WITH CAUSE OF ACTION AGAINST

INSURED. (a) On determination by the conservator that covered

claims should be actually paid or on order of the court to the

receiver to give notice for the filing of claims, a person having

a cause of action that constitutes a covered claim against an

insured of the impaired title insurance company under a title

insurance policy issued or assumed by the company may file the

claim with the receiver or conservator, regardless of whether the

claim is unliquidated or undetermined.

(b) A claim under this section may be approved as a covered

claim if:

(1) it may be reasonably inferred from the proof presented that

the claimant would be able to obtain a judgment on the cause of

action against the insured;

(2) the claimant provides suitable proof that no valid claim

exists against the impaired title insurance company arising from

the cause of action other than claims already made; and

(3) the total liability of the impaired title insurance compa

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

Loading..

Loading, Please Wait!