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Senate Bill 1433 |
Senate Author: Carona |
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Effective: 9-1-11 |
House Sponsor: Smithee |
Senate Bill 1433 amends the Insurance Code to create an exception to the requirement that any formal delinquency proceeding against a person under the Insurer Receivership Act be commenced by filing a petition in the name of the commissioner or the Texas Department of Insurance for an action authorized by the federal Dodd-Frank Wall Street Reform and Consumer Protection Act. The bill authorizes a receiver to appoint a special deputy for purposes of rehabilitating or liquidating an insurer without soliciting competitive bids in the event of an emergency and specifies the conditions that constitute such an emergency. The bill expands the grounds for the filing of a petition for an order of rehabilitation or liquidation of an insurer domiciled in Texas or an unauthorized insurer to include a court's determination relating to the default of a company under the federal Dodd-Frank Wall Street Reform and Consumer Protection Act. The bill authorizes the rehabilitator of an insurer to exercise all the powers possessed on August 31, 2005, by a receiver appointed for the purpose of rehabilitating an insurer. The bill includes claims for benefits under a health care plan issued by a health maintenance organization and claims under insurance policies or contracts for benefits issued by an unauthorized insurer among the unsecured claims classified as Class 2 claims for purposes of the priority of payment of unsecured claims.