What is the maximum amount a claimant may recover from an occurrence under a policy issued by an insolvent insurer in Texas?

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In Texas, the maximum amount a claimant may recover from an occurrence under a policy issued by an insolvent insurer is outlined in the Texas Property and Casualty Insurance Guaranty Association Act. This statute establishes a ceiling on the recovery amount in cases where an insurance company is unable to fulfill its obligations due to insolvency. Specifically, the limit for a single claimant per occurrence is set at $300,000.

This means if someone suffers a loss covered by an insolvent insurer, they can claim up to $300,000 for that particular incident. This limit is designed to protect policyholders and ensure that they have some financial recourse even when their insurance company fails. Understanding this cap is crucial for individuals and businesses as they seek to navigate recovery processes following an insurer's insolvency, making it clear that while total claim amounts can vary, there is a legislative boundary established for what can be recovered through the guaranty association.

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