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Tex. Ins. Code § 2053.203

PAYMENT OF CLAIMS; REIMBURSEMENT

Applied in 2 court decisions — leading case RELIANCE INSURANCE COMPANY v. Hibdon (2011)

Most recently applied in RELIANCE INSURANCE COMPANY v. Hibdon (January 2011)

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff

(a) An insurance company issuing a deductible policy under this subchapter shall service all claims that arise during the policy period, including those claims payable, wholly or partly, from the deductible amount.

(b) A deductible policy must provide that:

(1) the insurance company issuing the policy shall pay all benefits that are payable from the deductible amount; and

(2) the policyholder shall make reimbursements periodically, rather than at the time claim costs are incurred.

(c) The commissioner shall adopt rules to provide for adequate security for reimbursement of the amount paid by an insurance company that is payable from the deductible amount.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.