AI-assisted research summary: This section defines several terms used in the chapter, including affiliate, agent, association, board, impaired agent, impaired title insurance company, net direct written premiums, payment of covered claims, trust funds or escrow accounts, and unauthorized insurer.
Sec. 2602.003. DEFINITIONS. In this chapter: (1) "Affiliate" means a person who, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with an impaired title insurance company on December 31 of the year preceding the date the company becomes impaired. (2) "Agent" includes: (A) a title insurance agent, as defined by Section 2501.003; and (B) a direct operation or a title insurance company's wholly owned subsidiary or affiliate that performs the services usually and customarily performed by a title insurance agent. (3) "Association" means the Texas Title Insurance Guaranty Association. (4) "Board" means the board of directors of the association. (5) "Impaired agent" means a title agent or direct operation that is designated by the commissioner as an impaired agent and is: (A) placed by a court in this state or another state under an order of supervision, conservatorship, rehabilitation, or liquidation; (B) placed under an order of supervision or conservatorship under Chapter 441; (C) placed under an order of rehabilitation or liquidation under Chapter 443; or (D) otherwise found by a court of competent jurisdiction to be insolvent or otherwise unable to pay obligations as they come due. (6) "Impaired title insurance company" means a title insurance company that is designated by the commissioner as an impaired title insurance company and is: (A) placed by a court in this state or another state under an order of supervision, conservatorship, rehabilitation, or liquidation; (B) placed under an order of supervision or conservatorship under Chapter 441; (C) placed under an order of rehabilitation or liquidation under Chapter 443; or (D) otherwise found by a court of competent jurisdiction to be insolvent or otherwise unable to pay obligations as they come due. (7) "Net direct written premiums" means the gross amount of premiums paid by policyholders for issuance of title insurance policies insuring risks located in this state and to which this chapter applies, without deduction for premiums for reinsurance ceded to other title insurance companies and not including premiums for reinsurance accepted from other authorized title insurance companies. (8) "Payment of covered claims" means: (A) the actual payment of claims; or (B) the use of money of the impaired title insurance company and money derived from assessments or guaranty fees for consummation of contracts of reinsurance or assumption of liabilities or contracts of substitution to provide for liabilities arising from covered claims. (9) "Trust funds or escrow accounts" includes accounts subject to annual audit under Subchapter D, Chapter 2651. (10) "Unauthorized insurer" means a person, firm, association, or corporation that has engaged in activities prohibited by Subchapter C, Chapter 101, while engaging in the business of title insurance. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005. Amended by: Acts 2009, 81st Leg., R.S., Ch. 1025 (H.B. 4338), Sec. 3, eff. September 1, 2009. Acts 2017, 85th Leg., R.S., Ch. 967 (S.B. 2065), Sec. 5.008, eff. September 1, 2017.