Tex. Ins. Code Section 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 (Definitions); and

(B)

a direct operation or a title insurance company’s wholly 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 (Supervision and Conservatorship);

(C)

placed under an order of rehabilitation or liquidation under Chapter 443 (Insurer Receivership Act); 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 (Supervision and Conservatorship);

(C)

placed under an order of rehabilitation or liquidation under Chapter 443 (Insurer Receivership Act); 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 (Title Insurance Agents and Direct Operations).

(10)

“Unauthorized insurer” means a person, firm, association, or corporation that has engaged in activities prohibited by Subchapter C, Chapter 101 (Unauthorized Insurance), 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 (H.B. 4338), Sec. 3, eff. September 1, 2009.
Acts 2017, 85th Leg., R.S., Ch. 967 (S.B. 2065), Sec. 5.008, eff. September 1, 2017.

Source: Section 2602.003 — Definitions, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­2602.­htm#2602.­003 (accessed Jun. 5, 2024).

2602.001
Short Title
2602.002
Purposes and Findings
2602.003
Definitions
2602.004
Description of Control
2602.005
Applicability
2602.006
Construction
2602.007
Prohibited Use of Protection Provided by Chapter
2602.008
Immunity
2602.009
Association and Title Insurance Companies as Interested Parties
2602.010
Rules
2602.011
Information Provided by and to Commissioner
2602.012
Appeals
2602.013
Venue
2602.051
Association as Legal Entity
2602.052
Board of Directors
2602.053
Eligibility to Serve as Public Representative
2602.054
Term
2602.055
Compensation of Board Members
2602.057
Rights of Title Insurance Company with Representative on Board
2602.101
General Powers and Duties
2602.102
Plan of Operation
2602.103
Employees and Experts
2602.104
Association Records
2602.105
Meeting by Conference Call
2602.106
Accounts
2602.107
Administrative Expenses
2602.108
Deposit of Fees and Assessments
2602.109
Use of Excess Money in Accounts
2602.110
Expenses of Administering Impaired Insurer or Impaired Agent
2602.111
Delegation of Powers and Duties
2602.112
Exemption from Taxation
2602.113
Detection and Prevention of Impairment
2602.114
Meeting of Board on Impaired Title Insurance Company or Agent
2602.115
Association and Board Advice and Assistance
2602.116
Board Access to Records
2602.117
Board Report at Conclusion of Impairment
2602.151
Payment of Fee
2602.152
Amount of Fee
2602.153
Use of Fee
2602.154
Enforcement of Fee
2602.201
Making of Assessment
2602.202
Amount of Assessment
2602.203
Notice and Payment
2602.204
Exemption for Impaired Title Insurance Company
2602.205
Deferment
2602.206
Participation Receipts
2602.207
Accounting
2602.208
Use of Assessments
2602.209
Failure to Pay
2602.210
Recovery of Assessment in Rates
2602.251
Covered Claims in General
2602.252
Claim Against Trust Funds or Escrow Account
2602.253
Claim in Connection with Fidelity of Agent
2602.254
Certain Conservator and Receiver Expenses Covered
2602.255
Claims Not Covered
2602.256
Amount of Covered Claim
2602.257
Exhaustion of Other Rights Required
2602.258
Certain Money Authorized for Use in Paying Covered Claim
2602.259
Stay of Proceedings
2602.260
Admissibility of Payment
2602.261
Appeal of Claim Determination
2602.301
General Powers and Duties of Association in Connection with Payment of Covered Claims
2602.302
Payment of Covered Claims
2602.303
Servicing Facility
2602.304
Advance as Loan
2602.305
Association in Place of Impaired Title Insurance Company or Agent
2602.306
Assignment of Claimant’s Rights
2602.307
Settlement by Association Binding
2602.308
Report to Receiver
2602.351
Determination of Conservator Concerning Reinsurance, Assumption, or Substitution
2602.352
Notice of Determination Concerning Actual Payment
2602.353
Filing of Covered Claim
2602.354
Claim by Person with Cause of Action Against Insured
2602.355
Report to Association
2602.401
Issuance or Renewal of Policies
2602.402
Distributions to Shareholders and Affiliates
2602.403
Assets Attributable to Covered Policies
2602.451
Applicability
2602.452
Actions for Certain Agents
2602.453
Authority of Association

Accessed:
Jun. 5, 2024

§ 2602.003’s source at texas​.gov