Texas Insurance Code 2602.301 – General Powers and Duties of Association in Connection With Payment of Covered Claims
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(a) The association shall:
(1) investigate a claim brought against the association, the commissioner, or a special deputy receiver appointed under Chapter 443 if the claim involves or may involve the association’s rights and obligations under this chapter; and
(2) adjust, compromise, settle, and pay a covered claim to the extent of the association’s obligation, and deny all other claims.
(b) The association may review a settlement, release, or judgment to which an impaired title insurance company or agent or its insured was a party to determine the extent to which the settlement, release, or judgment is contested.
Terms Used In Texas Insurance Code 2602.301
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.