Tex. Ins. Code Section 443.102
Powers and Duties of Rehabilitator


(a)

The rehabilitator may appoint one or more special deputies. A special deputy serves at the pleasure of the rehabilitator and has all the powers and responsibilities of the rehabilitator granted under this section, unless specifically limited by the rehabilitator. The rehabilitator may employ or contract with legal counsel, actuaries, accountants, appraisers, consultants, clerks, assistants, and other personnel as may be deemed necessary. Any special deputy or any other person with whom the rehabilitator contracts under this subsection may act on behalf of the commissioner only in the commissioner’s capacity as rehabilitator. Any person with whom the rehabilitator contracts under this subsection is not considered an agent of the state, and any contract entered into under this subsection does not constitute a contract with the state. The provisions of any law governing the procurement of goods and services by the state does not apply to any contract entered into by the commissioner as rehabilitator. The compensation of any special deputies, employees, and contractors and all expenses of taking possession of the insurer and of conducting the rehabilitation shall be fixed by the rehabilitator, with the approval of the receivership court in accordance with Section 443.015, and shall be paid out of the property of the insurer. The persons appointed under this subsection serve at the pleasure of the rehabilitator. If the rehabilitator deems it necessary to the proper performance of the rehabilitator’s duties under this chapter, the rehabilitator may appoint an advisory committee of policyholders, claimants, or other creditors, including guaranty associations. The advisory committee serves at the pleasure of the rehabilitator and without compensation or reimbursement for expenses. The rehabilitator or the receivership court in rehabilitation proceedings conducted under this chapter may not appoint another committee of any nature.

(b)

The rehabilitator may take action as the rehabilitator deems necessary or appropriate to reform and revitalize the insurer, including canceling policies, insurance and reinsurance contracts other than life or health insurance or annuities, or surety bonds or surety undertakings or transferring policies, insurance and reinsurance contracts, or surety bonds or surety undertakings to a solvent assuming insurer, with court approval. The rehabilitator has all the powers of the directors, officers, and managers of the insurer, whose authority is suspended, except as redelegated by the rehabilitator. The rehabilitator has full power to direct and manage, hire and discharge employees, and deal with the property and business of the insurer.

(c)

If it appears to the rehabilitator that there has been criminal or tortious conduct or breach of any contractual or fiduciary obligation detrimental to the insurer by any officer, manager, agent, broker, employee, affiliate or other person, the rehabilitator may pursue all appropriate legal remedies on behalf of the insurer.

(d)

The rehabilitator may assert all defenses available to the insurer as against third persons, including statutes of limitations, statutes of frauds, and the defense of usury. A waiver of any defense by the insurer after a petition under this chapter has been filed does not bind the rehabilitator.

(e)

The enumeration, in this section, of the powers and authority of the rehabilitator may not be construed as a limitation upon the rehabilitator, nor shall it exclude in any manner the right to do other acts not specifically enumerated or otherwise provided for, as may be necessary or appropriate for the accomplishment of or in aid of the purpose of rehabilitation.

(f)

The rehabilitator may exercise all powers:

(1)

possessed on August 31, 2005, by a receiver appointed for the purpose of rehabilitating an insurer; or

(2)

conferred on a rehabilitator after that date by the laws of this state that are not inconsistent with this chapter.
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.102 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(n), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.102 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(n), eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 193 (S.B. 1433), Sec. 6, eff. September 1, 2011.

Source: Section 443.102 — Powers and Duties of Rehabilitator, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­443.­htm#443.­102 (accessed May 4, 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

Accessed:
May 4, 2024

§ 443.102’s source at texas​.gov