SECTION 14.13. Payment of Claims from the Fund

(a) The following payments of claims shall apply for a claim based on a violation occurring prior to September 1, 2009.

(1) Claims of $2000 or less may be paid in full.

(2) Claims of more than $2000 may be paid in the following manner:

(A) If the claim was filed on or after September 1, 1999, but prior to September 1, 2009, the first $2000 plus no more than 70% of the amount in excess of $2,000, may be paid.

(B) If the claim was filed prior to September 1, 1999, the first $1,000 plus no more than 60% of the amount in excess of $1000, may be paid.

(3) Claims arising from Same Contract. Total payment for claims arising from the same contract shall not exceed $35,000.

(4) Claims Against a Single Licensee. Total payment for claims against a single licensee shall not exceed $85,000 in any one calendar year. Claims shall be paid in the order that a final determination is made by the department or the Board. In cases when a claim cannot be paid in full due to the restrictions of this paragraph, the claimant shall be given the option of accepting immediate payment of a lesser amount or accepting full payment from the Fund during the next calendar year.

(b) The following payments of claims shall apply for a claim based on a violation occurring on or after September 1, 2009.

(1) Claims of $50,000 or less may be paid in full.

(2) Claims Arising from Same Contract. Total payment for claims arising from the same contract shall not exceed $50,000.

(3) Claims Against a Single Licensee or a person required to be licensed. Total payment for claims against a single licensee or a person required to be licensed shall not exceed $85,000 in any one calendar year.

(4) Claims against a person who is not licensed. Payment for claims against a person who is not licensed at the time the claim was filed shall not exceed 80% of the total claim.

(5) Claims shall be paid in accordance with the order that a final determination is made by the department or the Board. In cases when a claim cannot be paid in full due to the restrictions of this subsection, the claimant shall be given the option of accepting immediate payment of a lesser amount or accepting full payment from the Fund during the next calendar year.

Source Note: The provisions of this §14.13 adopted to be effective August 13, 1997, 22 TexReg 7223; amended to be effective December 13, 1999, 24 TexReg 11101; amended to be effective September 1, 2009, 34 TexReg 5668