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Tex. Ins. Code § 463.257

IMPOSITION OF LIEN OR MORATORIUM

Known as the Texas Life and Health Insurance Guaranty Association Act

The act spans §§ 463–463 (82 sections).

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff

To carry out the association's duties under this chapter and with the court's approval, the association may:

(1) impose a permanent policy or contract lien in connection with any guarantee, assumption, or reinsurance agreement if the association determines that:

(A) the amounts that may be assessed under this chapter are insufficient to ensure full and prompt performance of the association's duties under this chapter; or

(B) adverse economic or financial conditions affecting member insurers make imposition of the lien in the public interest; or

(2) in addition to any contractual provision for deferral of cash or policy loan value, impose a temporary moratorium or lien on payment of cash values and policy loans or the exercise of any other right to withdraw money held in connection with a policy or contract.

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