§ 74.505. Financial Responsibility

Codes > Texas Civil Practice and Remedies Code > Title 4 > Chapter 74. : Subchapter K. > 74.505. Financial

Sec. 74.505.  FINANCIAL RESPONSIBILITY.

(a) As a condition to authorizing periodic payments of future damages, the court shall require a defendant who is not adequately insured to provide evidence of financial responsibility in an amount adequate to assure full payment of damages awarded by the judgment.

(b)  The judgment must provide for payments to be funded by:

    (1)  an annuity contract issued by a company licensed to do business as an insurance company, including an assignment within the meaning of Section 130, Internal Revenue Code of 1986, as amended;

    (2)  an obligation of the United States;

    (3)  applicable and collectible liability insurance from one or more qualified insurers; or

    (4)  any other satisfactory form of funding approved by the court.

(c)  On termination of periodic payments of future damages, the court shall order the return of the security, or as much as remains, to the defendant.

Added by Acts 2003, 78th Leg., ch. 204, Sec. 10.01, eff. Sept. 1, 2003.