Sec. 443.202. RECOVERY FROM AFFILIATES. (a) The receiver has a right to recover from any affiliate of the insurer any property of the insurer transferred to or for the benefit of the affiliate, or the property's value, if the transfer was made within the two years preceding the initial petition for receivership.
(b) A transfer is not recoverable under Subsection (a) if the affiliate shows that, when the transfer was made:
(1) the insurer was solvent;
(2) the transfer was lawful; and
(3) neither the insurer nor the affiliate knew or reasonably should have known that the transfer, under then-applicable statutory accounting standards, would:
(A) place the insurer:
(i) in violation of applicable capital or surplus requirements;
(ii) below the applicable minimum risk-based capital level; or
(iii) in violation of writing ratios under Article 1.32 or analogous requirements under Section 843.406; or
(B) cause the insurer's filed financial statements not to present fairly the capital and surplus of the insurer.
Added by Acts 2005, 79th Leg., Ch. 995 (H.B. 2157), Sec. 1, eff. September 1, 2005.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.202 by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.004(a)(1), eff. September 1, 2007.
Redesignated from Insurance Code - Not Codified, Art/Sec 21A.202 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.004(a)(1), eff. September 1, 2007.
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