Tex.
Ins. Code Section 2602.255
Claims Not Covered
(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;(C)
court costs;(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 (Unfair Methods of Competition and Unfair or Deceptive Acts or Practices) of this code or Subchapter E, Chapter 17 (Deceptive Trade Practices), Business & Commerce Code, or a similar law of another state; 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 (Claim Against Trust Funds or Escrow Account) 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 (Covered Claims in General), 2602.252 (Claim Against Trust Funds or Escrow Account), or 2602.253 (Claim in Connection with Fidelity of Agent) by a claimant who caused or substantially contributed to the claimant’s loss by the claimant’s action or omission, as determined by the association or the association’s agent; and(7)
a claim filed with the association after the claim filing deadline for an impaired title insurance company or agent.
Source:
Section 2602.255 — Claims Not Covered, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2602.htm#2602.255 (accessed Jun. 5, 2024).
