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Terms Used In Texas Insurance Code 462.208

  • 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.

A supplementary payment obligation, including an adjustment fee or expense, attorney’s fee or expense, court cost, interest or penalty, or interest or bond premium, incurred before an insurer is determined to be an impaired insurer is not a covered claim.