CLAIMS NOT COVERED

The following are not covered claims: (1) an amount due a reinsurer, title insurance company, insurance pool, or underwriting association as a subrogation recovery or otherwise; (2) a supplementary payment obligation incurred before a determination is made under this chapter that a title insurance company or agent is impaired, including: (A) adjustment fees or expenses; (B) attorney's fees or expenses; (C) court costs; (D) interest; (E) enhanced damages, sought as a recovery against the insured, the impaired title insurance company or agent, or the association, that arise under Chapter 541 of this code or Subchapter E, Chapter 17, Business & Commerce Code, or a similar law of another state; and (F) bond premiums; (3) a shortage of trust funds or in an escrow account resulting from the insolvency of a financial institution; (4) exemplary, extracontractual, or bad faith damages awarded against an insured or title insurance company by a court judgment; (5) a claim under Section 2602.252 by a claimant who has a lien against the real property that was the subject of the transaction from which the claim arises, unless the lien is held to be invalid as a matter of law; (6) a claim under Section 2602.251, 2602.252, or 2602.253 by a claimant who caused or substantially contributed to the claimant's loss by the claimant's action or omission, as determined by the association or the association's agent; and (7) a claim filed with the association after the claim filing deadline for an impaired title insurance company or agent.