TO IMPAIRED OR INSOLVENT INSURER

1. (a) This section applies only to a member insurer that is an impaired domestic insurer.

2. (b) With the commissioner's approval, the association may:

   1. (1) guarantee, assume, reissue, or reinsure, or cause to be guaranteed, assumed, reissued, or reinsured, one or more of the insurer's policies or contracts;

   2. (2) provide money, pledges, notes, guarantees, or other means proper to:

      1. (A) implement Subdivision (1); and
      2. (B) ensure payment of the insurer's contractual obligations until action is taken under Subdivision (1); or
   3. (3) loan money to the insurer.

3. (c) In taking action under Subsection (b), the association may impose any condition that:

   1. (1) does not impair the insurer's contractual obligations; and

   2. (2) is approved by:

      1. (A) the commissioner; and
      2. (B) the insurer, except in a conservation or rehabilitation ordered by a court.

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.

Acts 2019, 86th Leg., R.S., Ch. 432 (S.B. 1153), Sec. 16, eff. September 1, 2019.