Tex. Ins. Code Section 443.304
Unclaimed and Withheld Funds


(a)

If any funds of the receivership estate remain unclaimed after the final distribution under Section 443.302, the funds must be placed in a segregated unclaimed funds account held by the commissioner. If the owner of any of the unclaimed funds presents proof of ownership satisfactory to the commissioner before the second anniversary of the date of the termination of the delinquency proceeding, the commissioner shall remit the funds to the owner. The interest earned on funds held in the unclaimed funds account may be used to pay any administrative costs related to the handling or return of unclaimed funds.

(b)

If any amounts held in the unclaimed funds account remain unclaimed on or after the second anniversary of the date of the termination of the delinquency proceeding, the commissioner may file a motion for an order directing the disposition of the funds in the court in which the delinquency proceeding was pending. Any costs incurred in connection with the motion may be paid from the unclaimed funds account. The motion shall identify the name of the insurer, the names and last known addresses of the persons entitled to the unclaimed funds, if known, and the amount of the funds. Notice of the motion shall be given as directed by the court. Upon a finding by the court that the funds have not been claimed before the second anniversary of the date of the termination of the delinquency proceeding, the court shall order that any claims for unclaimed funds and any interest earned on the unclaimed funds that has not been expended under Subsection (a) are abandoned and that the funds must be disbursed under one of the following methods:

(1)

the amounts may be deposited in the general receivership expense account under Subsection (c);

(2)

the amounts may be transferred to the comptroller, and deposited into the general revenue fund; or

(3)

the amounts may be used to reopen the receivership in accordance with Section 443.353 and be distributed to the known claimants with approved claims.

(c)

The commissioner may establish an account for the following purposes:

(1)

to pay general expenses related to the administration of receiverships; and

(2)

to advance funds to any receivership that does not have sufficient cash to pay its operating expenses.

(d)

Any advance to a receivership under Subsection (c)(2) may be treated as a claim under Section 443.301 as agreed at the time the advance is made or, in the absence of an agreement, in the priority determined to be appropriate by the court.

(e)

If the commissioner determines at any time that the funds in the account exceed the amount required, the commissioner may transfer the funds or any part of the funds to the comptroller, and the transferred funds must be deposited into the general revenue fund.
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.304 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(mm), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.304 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(mm), eff. September 1, 2007.

Source: Section 443.304 — Unclaimed and Withheld Funds, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­443.­htm#443.­304 (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

§ 443.304’s source at texas​.gov