Ask an insurance law question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Texas Insurance Code 462.253

  • 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.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005

To the extent that the association’s obligation is reduced by the application of Sections 462.251 and 462.252, the liability of the person insured by the impaired insurer’s policy for the claim is reduced in the same amount.