Tex. Codes » Insurance Code · TITLE 4. REGULATION OF SOLVENCY · SUBTITLE D. GUARANTY ASSOCIATIONS · CHAPTER 462. TEXAS PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION
Texas Codes

Tex. Ins. Code § 462.309 (2026)

Stay Of Proceedings; Certain Decisions Not Binding

✓ current as of May 2026
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Sec. 462.309. STAY OF PROCEEDINGS; CERTAIN DECISIONS NOT BINDING. (a) To permit the association to properly defend a pending cause of action, a proceeding in which an impaired insurer is a party or is obligated to defend a party in a court in this state, other than a proceeding directly related to the receivership or instituted by the receiver, is stayed for:

(1) a six-month period beginning on the later of the date of the designation of impairment or the date an ancillary proceeding is brought in this state; and

(2) a subsequent period as determined by the court, if any.

(b) The stay applies to each party to the proceeding and the proceeding is stayed for all purposes.

(c) A deadline imposed under the Texas Rules of Civil Procedure or the Texas Rules of Appellate Procedure is tolled during the stay. Statutes of limitation or repose are not tolled during the stay, and any action filed during the stay is stayed upon the filing of the action.

(d) The court in which the delinquency proceeding is pending has exclusive jurisdiction regarding the application, enforcement, and extension of the stay and may issue an injunction or another similar order to enforce the stay.

(e) The commissioner may bring an ancillary conservation proceeding under Section 443.401 for the purpose of determining the application, enforcement, and extension of the stay to an impaired insurer that is not domiciled in this state.

(f) With respect to a covered claim arising from a judgment, order, decision, verdict, or finding based on the default of an impaired insurer or an impaired insurer's failure to defend the insured, the association, on the association's own behalf or on behalf of an insured and on application, shall be entitled to:

(1) have the court or administrator that made the judgment, order, decision, verdict, or finding set aside the judgment, order, decision, verdict, or finding; and

(2) defend the claim on the merits.

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.011(a), eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.011(a), eff. September 1, 2007.

Notes of Decisions
Cited in 20 cases (4 in the last 5 years), 2009–2025 · leading case: Galbraith Eng'g Consultants, Inc. v. Pochucha, 290 S.W.3d 863 (Tex. 2009).
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Galbraith Eng'g Consultants, Inc. v. Pochucha, 290 S.W.3d 863 (Tex. 2009). “044(b) (mentioning the "period of limitation or repose” under this section); Tex. Ins.Code § 462.309(c) (concerning "Stay of Proceedings” and stating: "Statutes of limitation or repose are not tolled during the stay, and any action filed during the stay is stayed upon the filing…”
Stephen Whittington v. Marc H. Nathan, 371 S.W.3d 399 (Tex. App. 2012). “044(b) (mentioning the “period of limitation or repose” under this section); Tex. Ins.Code Ann. § 462.309(c) (West 2009) (stating: “Statutes of limitation or repose are not tolled during the stay, and any action filed during the stay is stayed upon the filing of the action.”
May Ha Goetsch, A.C.N.P., & Alvin Uchenna Anene, M.D., & Jagadeshwar Reddy, M.D., & Sathishkumar Seeliyur Duraiswamy, M.D. & Brant Erwin, APRN, AGACNP-BC, & Jay Arvind Patel, D.O., & Baylor All Saints Med. Ctr. & Century Integrated Partners, Inc. v. Deanna Rolls, Individually & as Wrongful Death Beneficiary of David Rolls, & as Rep. of the Est. of David Rolls, & Wanda Yates (Tex. App. 2021). · cites it 3× “(c) A deadline imposed under the Texas Rules of Civil Procedure or the Texas Rules of Appellate Procedure is tolled during the stay. Statutes of limitation or repose are not tolled during the stay, and any action filed during the stay is stayed upon the filing of the action.”
in Re Arcababa D/B/A OK Corral (Tex. App. 2013). · cites it 3× “However, because of the application of Texas Insurance Code section 462.309, this deadline is tolled.”
David B. Cantu v. Enrique M. Carrizales & Wilibardo Garcia (Tex. App. 2013). · cites it 2× “It further states that, based on the court’s insolvency finding, the Commissioner designates Santa Fe Auto Insurance Company as an “impaired insurer” under Texas Insurance Code section 462.004(5), effective April 5, 2013.”
in Re: Kajin Shamdeen (Tex. App. 2021). “ACCC Insurance Company, there is an automatic six month stay of this proceeding under Texas Insurance Code § 462.309. By order dated January 5, 2020, this Court previously abated this cause for 90 days pursuant to Texas Insurance Code § 443.”
Stella D. Carlos Salmeron v. Felipe De Jesus Garcia Santacruz (Tex. App. 2021). “Appellee stated that, pursuant to Texas Insurance Code Section 462.309, an automatic six-month stay became effective until June 30, 2021.”
AutoNation Fort Worth Motors, Ltd. D/B/A Bankston Chevrolet Fort Worth v. Linda M. Mitchell (Tex. App. 2025). “at *4 (citing Tex. Ins. Code Ann. § 462.309 (b) (“The stay applies to each party to the proceeding and the proceeding is stayed for all purposes.”
Maria Del Rosario Cortinas v. Noe Lopez (Tex. App. 2014). “See TEX. INS. CODE ANN. § 462.309 (West, Westlaw through 2013 3d C.”
Chris Carpenter v. First Texas Bancorp D/B/A First Texas Bank (Tex. App. 2014). “10-078-C277, HONORABLE KEN ANDERSON, JUDGE PRESIDING ORDER Appellee has filed a notice with this Court informing us that a six-month automatic stay of proceedings and tolling of deadlines under the Texas Rules of Appellate Procedure is in place with respect to this cause until…”
Zachary Coleman v. Christopher DeWayne Reich (Tex. App. 2013). “The period for a stay of as set out in Tex. Ins. Code § 462.309 has expired. Unless any party files a response within fifteen days of the date of this order demonstrating that the stay has been extended, the appeal will be reinstated.”
Vonda Barnhart v. Sylvia Morales & Luis Perez (Tex. App. 2013). “The period for a stay of as set out in Tex. Ins. Code § 462.309 has expired. Unless any party files a response within fifteen days of the date of this order demonstrating that the stay has been extended, the appeal will be reinstated.”
Show all 20 citing cases →
— Tex. Ins. Code § 462.309(a) — 1 case
in Re Arcababa D/B/A OK Corral (Tex. App. 2013). “However, because of the application of Texas Insurance Code section 462.309, this deadline is tolled.”
— Tex. Ins. Code § 462.309(c) — 4 cases
Galbraith Eng'g Consultants, Inc. v. Pochucha, 290 S.W.3d 863 (Tex. 2009). “044(b) (mentioning the "period of limitation or repose” under this section); Tex. Ins.Code § 462.309(c) (concerning "Stay of Proceedings” and stating: "Statutes of limitation or repose are not tolled during the stay, and any action filed during the stay is stayed upon the filing…”
Stephen Whittington v. Marc H. Nathan, 371 S.W.3d 399 (Tex. App. 2012). “044(b) (mentioning the “period of limitation or repose” under this section); Tex. Ins.Code Ann. § 462.309(c) (West 2009) (stating: “Statutes of limitation or repose are not tolled during the stay, and any action filed during the stay is stayed upon the filing of the action.”
in Re Arcababa D/B/A OK Corral (Tex. App. 2013). “However, because of the application of Texas Insurance Code section 462.309, this deadline is tolled.”
Francisco Hernandez v. Roy Moss & Vaughn Anderson (Tex. App. 2014).
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