Tex. Ins. Code Section 443.014
Immunity and Indemnification of Receiver and Assistants

(a)

For the purposes of this section, the persons entitled to immunity and indemnification and those entitled to immunity only, as applicable, are:

(1)

all present and former receivers responsible for the conduct of a delinquency proceeding under this chapter;

(2)

all of the receiver’s present and former assistants, including:

(A)

all present and former special deputies and assistant special deputies engaged by contract or otherwise;

(B)

all persons whom the receiver, special deputies, or assistant special deputies have employed to assist in a delinquency proceeding under this chapter; and

(C)

any state employees acting with respect to a delinquency proceeding under this chapter; and

(3)

all of the receiver’s present and former contractors, including all persons with whom the receiver, special deputies, or assistant special deputies have contracted to assist in a delinquency proceeding under this chapter, including attorneys, accountants, auditors, actuaries, investment bankers, financial advisors, and any other professionals or firms who are retained or contracted with by the receiver as independent contractors and all employees of the contractors.

(b)

The receiver, the receiver’s assistants, and the receiver’s contractors have immunity under this chapter, as described by Subsections (c) and (d).

(c)

The receiver, the receiver’s assistants, and the receiver’s contractors are immune from suit and liability, both personally and in their representative capacities, for any claim for damage to or loss of property or personal injury or other civil liability caused by or resulting from any alleged act, error, or omission of the receiver or any assistant or contractor that arises out of or by reason of their duties or employment or is taken at the direction of the receivership court, providing that the alleged act, error, or omission is performed in good faith.

(d)

Any immunity granted by this section is in addition to any immunity granted by other law.

(e)

The receiver and the receiver’s assistants are entitled to indemnification under this chapter, as described by Subsections (f)-(l).

(f)

If any legal action is commenced against the receiver or any assistant, whether against the receiver or assistant personally or in their official capacity, alleging property damage, property loss, personal injury, or other civil liability caused by or resulting from any alleged act, error, or omission of the receiver or any assistant arising out of or by reason of their duties or employment, the receiver and any assistant are indemnified from the assets of the insurer for all expenses, attorney’s fees, judgments, settlements, decrees, or amounts due and owing or paid in satisfaction of or incurred in the defense of the legal action, unless it is determined upon a final adjudication on the merits that the alleged act, error, or omission of the receiver or assistant giving rise to the claim:

(1)

did not arise out of or by reason of their duties or employment; or

(2)

was caused by intentional or wilful and wanton misconduct.

(g)

Attorney’s fees and any and all related expenses incurred in defending a legal action for which immunity or indemnity is available under this section must be paid from the assets of the insurer, as the fees and expenses are incurred, and in advance of the final disposition of the legal action upon receipt of an agreement by or on behalf of the receiver or assistant to repay the attorney’s fees and expenses, if it is ultimately determined upon a final adjudication on the merits that the receiver or assistant is not entitled to immunity or indemnity under this section.

(h)

Any indemnification for expense payments, judgments, settlements, decrees, attorney’s fees, surety bond premiums, or other amounts paid or to be paid from the insurer’s assets pursuant to this section are an administrative expense of the insurer.

(i)

In the event of any actual or threatened litigation against a receiver or any assistant for whom immunity or indemnity may be available under this section, a reasonable amount of funds, which in the judgment of the receiver may be needed to provide immunity or indemnity, must be segregated and reserved from the assets of the insurer as security for the payment of indemnity until:

(1)

all applicable statutes of limitation have run;

(2)

all actual or threatened actions against the receiver or any assistant have been completely and finally resolved; and

(3)

all obligations under this section have been satisfied.

(j)

Instead of segregating and reserving funds under Subsection (i), the receiver may, in the receiver’s discretion, obtain a surety bond or make other arrangements that will enable the receiver to secure fully the payment of all obligations under this section.

(k)

If any legal action against an assistant for whom indemnity may be available under this section is settled prior to final adjudication on the merits, the receiver must pay the settlement amount on behalf of the assistant, or indemnify the assistant for the settlement amount, unless the receiver determines that the claim:

(1)

did not arise out of or by reason of the assistant’s duties or employment; or

(2)

was caused by the intentional or wilful and wanton misconduct of the assistant.

(l)

In any legal action in which a claim is asserted against the receiver, that portion of any settlement relating to the alleged act, error, or omission of the receiver is subject to the approval of the receivership court. The receivership court may not approve that portion of the settlement if it determines that the claim:

(1)

did not arise out of or by reason of the receiver’s duties or employment; or

(2)

was caused by the intentional or wilful and wanton misconduct of the receiver.

(m)

Nothing contained or implied in this section may operate or be construed or applied to deprive the receiver, the receiver’s assistants, or receiver’s contractors of any immunity, indemnity, benefits of law, rights, or defense otherwise available.

(n)

The immunity and indemnification provided to the receiver’s assistants and the immunity provided to the receiver’s contractors under this section do not apply to any action by the receiver against that person.

(o)

Subsection (b) applies to any suit based in whole or in part on any alleged act, error, or omission that takes place on or after September 1, 2005.

(p)

Subsections (e)-(l) apply to any suit that is pending on or filed after September 1, 2005, without regard to when the alleged act, error, or omission took place.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.014 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.014 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.

Source: Section 443.014 — Immunity and Indemnification of Receiver and Assistants, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­443.­htm#443.­014 (accessed Jun. 5, 2024).

443.001
Construction and Purpose 443.002
Conflicts of Law 443.003
Covered Persons 443.004
Definitions 443.005
Jurisdiction and Venue 443.006
Exemption from Fees 443.007
Notice, Hearing, and Appeal on Matters Submitted by Receiver for Receivership Court Approval 443.008
Injunctions and Orders 443.009
Statutes of Limitations 443.010
Cooperation of Officers, Owners, and Employees 443.011
Actions by and Against Receiver 443.012
Unrecorded Obligations and Defenses of Affiliates 443.013
Executory Contracts and Unexpired Leases 443.014
Immunity and Indemnification of Receiver and Assistants 443.015
Approval and Payment of Expenses 443.016
Financial Reporting 443.017
Records 443.051
Receivership Court’s Seizure Order 443.052
Commencement of Formal Delinquency Proceeding 443.053
Return of Summons and Summary Hearing 443.054
Proceedings for Expedited Trial: Continuances, Discovery, Evidence 443.055
Decision and Appeals 443.056
Confidentiality 443.057
Grounds for Conservation, Rehabilitation, or Liquidation 443.058
Entry of Order 443.059
Effect of Petition or Order on Contract or Lease 443.101
Rehabilitation Orders 443.102
Powers and Duties of Rehabilitator 443.103
Rehabilitation Plans 443.104
Termination of Rehabilitation 443.105
Coordination with Guaranty Associations 443.0135
Contracts for Special Deputies 443.151
Liquidation Orders 443.152
Continuance of Coverage 443.153
Sale or Dissolution of Insurer’s Corporate Entity 443.154
Powers of Liquidator 443.155
Notice to Creditors and Others 443.156
Duties of Agents 443.201
Turnover of Assets 443.202
Recovery from Affiliates 443.203
Unauthorized Post-petition Transfers 443.204
Voidable Preferences and Liens 443.205
Fraudulent Transfers and Obligations 443.206
Receiver as Lien Creditor 443.207
Liability of Transferee 443.208
Claims of Holders of Void or Voidable Rights 443.209
Setoffs 443.210
Assessments 443.211
Reinsurer’s Liability 443.212
Recovery of Premiums Owed 443.213
Administration of Deductible Agreements and Policyholder Collateral 443.251
Filing of Claims 443.252
Proof of Claim 443.253
Allowance of Claims 443.254
Claims Under Occurrence Policies, Surety Bonds, and Surety Undertakings 443.255
Allowance of Contingent and Unliquidated Claims 443.256
Special Provisions for Third-party Claims 443.257
Disputed Claims 443.258
Liquidator’s Recommendations to Receivership Court 443.259
Claims of Codebtors 443.260
Secured Creditors’ Claims 443.261
Qualified Financial Contracts 443.301
Priority of Distribution 443.302
Partial and Final Distributions of Assets 443.303
Early Access Payments 443.304
Unclaimed and Withheld Funds 443.351
Condition on Release from Delinquency Proceedings 443.352
Termination of Liquidation Proceedings 443.353
Reopening Receivership 443.354
Disposition of Records During and After Termination of Receivership 443.355
External Audit of the Receiver’s Books 443.401
Ancillary Conservation of Foreign Insurers 443.402
Domiciliary Receivers Appointed in Other States
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 443.014’s source at texas​.gov