Tex. Ins. Code § 1131.456

Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.

Section 1131.456 - Payment of Proceeds

(a) The proceeds of the insurance must be payable to the policyholder.

(b) Payment to the policyholder reduces or extinguishes the debtor's unpaid indebtedness to the extent of the payment. In the case of a debtor under a loan or loan commitment described by Section 1131.455(b), any insurance proceeds in excess of the indebtedness to the creditor are payable:

(1) to the debtor's estate; or

(2) under a facility of payment clause.

Tex. Ins. Code § 1131.456

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. 6/1/2003.