(a) Any amount directly or indirectly due any reinsurer, insurer, self-insurer, insurance pool, or underwriting association, as a subrogation recovery, reinsurance recovery, contribution, or indemnification, or otherwise, is not a covered claim.
(b) An impaired insurer’s insured is not liable, and the reinsurer, insurer, self-insurer, insurance pool, or underwriting association is not entitled to sue or continue a suit against the insured, for a subrogation recovery, reinsurance recovery, contribution, indemnification, or any other claim asserted directly or indirectly by a reinsurer, insurer, self-insurer, insurance pool, or underwriting association to the extent of the applicable liability limits of the insurance policy written and issued to the insured by the insolvent insurer.

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Terms Used In Texas Insurance Code 462.207

  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005

(c) The association is entitled to recover the association’s costs, expenses, and reasonable attorney’s fees incurred in defending the association or an impaired insurer’s insured against a claim brought in violation of this subsection by a reinsurer, insurer, self-insurer, insurance pool, or underwriting association, on that entity’s own behalf or on behalf of the entity’s insured, after the date on which the entity is provided notice by the association or otherwise of the provisions of this section applicable to the entity’s suit.