(a) Administrative expenses of the pool may be paid from the fund. Payments for administrative expenses during a fiscal year may not exceed 10 percent of the total amount of the money in the fund during that fiscal year.
(b) Money in the fund may not be used to pay:
(1) punitive damages; or
(2) a fine or penalty imposed for a violation of:
(A) a statute;
(B) a rule of a state agency; or
(C) an ordinance or order of a local government.

Terms Used In Texas Insurance Code 2205.253

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Rule: includes regulation. See Texas Government Code 311.005
  • Statute: A law passed by a legislature.
  • Year: means 12 consecutive months. See Texas Government Code 311.005

(c) A claim or judgment may be paid from the fund under excess liability insurance coverage only if all benefits payable under any other underlying liability insurance policy covering that claim or judgment are exhausted.

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