Texas § IN.887.456 - CONTINUING OBLIGATIONS OF CONVERTED OR REINSURED ASSOCIATION

§ IN.887.456. CONTINUING OBLIGATIONS OF CONVERTED OR REINSURED ASSOCIATION

CONTINUING OBLIGATIONS OF CONVERTED OR REINSURED ASSOCIATION. (a) The standing of each claim against an association that converts or reinsures under this subchapter must be preserved unimpaired under the reorganized company or the company reinsuring the membership of the association. (b) Each debt, liability, and duty of a converted or reinsured association attaches to the reorganized company or the company reinsuring the membership of the association and may be enforced against it to the same extent as if the debt or liability had been incurred or contracted by the company, except that a reorganized company or reinsuring company may alter a liability created under the terms of an insurance certificate outstanding at the date of conversion or reinsurance in accordance with the plan approved by the commissioner under this subchapter. (c) Notwithstanding Subsection (b), the company may not alter the renewability or noncancellability of an insurance certificate issued before the date of conversion or reinsurance. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.