Texas Insurance Code 2602.101 – General Powers and Duties
(a) In addition to the other powers and duties provided by this chapter, the association may:
(1) borrow money as necessary to implement this chapter according to the plan of operation;
(2) lend money to the receiver, supervisor, or conservator of an impaired title insurance company or its agent;
(3) sue and be sued, including taking any legal action necessary or proper to recover an unpaid assessment;
(4) enter into contracts as necessary or proper to implement this chapter;
(5) ensure payment of the policy obligations of an impaired title insurance company;
(6) negotiate and contract with a rehabilitator, conservator, supervisor, receiver, ancillary receiver, or other third party to exercise the powers and perform the duties of the association;
(7) guarantee, assume, or reinsure, or cause to be guaranteed, assumed, or reinsured, a policy or contract of an impaired title insurance company;
(8) take legal action necessary to avoid the payment of improper claims or to settle claims or potential claims against an impaired title insurance company or agent, or the association;
(9) assume control of and consolidate the escrow accounts transferred to the association by an impaired agent that has been placed in receivership, supervision, or conservatorship, and:
(A) pay covered claims from the consolidated escrow accounts to facilitate processing and payment of claims;
(B) maintain a separate accounting for each transferred escrow account; and
(C) return money not used to pay a covered claim to the owner of the money in accordance with the contract governing the escrow of the money; and
(10) perform any other acts as necessary or proper to implement this chapter.
(b) The association has standing to appear before a court in this state with jurisdiction over an impaired title insurance company or agent concerning which the association is or may become obligated under this chapter.
Terms Used In Texas Insurance Code 2602.101
- Contract: A legal written agreement that becomes binding when signed.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
