Texas Insurance Code 541.454 – Penalties and Related Payments by Insurer
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(a) Civil penalties, premium refunds, judgments, compensatory judgments, individual recoveries, orders, class action awards, costs, damages, or attorney’s fees assessed or awarded under this chapter:
(1) may be paid only from the capital or surplus funds of the offending insurer; and
(2) may not take precedence over, be in priority to, or in any other manner apply to:
(A) Chapter 462 or 463 or any other insurance guaranty act; or
(B) Chapter 422.
(b) The statutes described by Subsection (a)(2) and the priorities of funds created by those statutes are exempt from the provisions of this chapter.
Terms Used In Texas Insurance Code 541.454
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.