PAYMENT OF COVERED CLAIMS

(a) The association shall pay covered claims: (1) existing before the determination of impairment; or (2) arising on or before: (A) the date of cancellation of the impaired title insurance company's policies or the claim deadline for claims against the impaired title insurance company, as applicable; or (B) the claim deadline for covered claims against an impaired agent, which is the first anniversary of the date of determination of impairment. (b) A court in this state in which receivership proceedings of an impaired title insurance company are pending shall set, as applicable: (1) the date of cancellation of the policies, which may not be later than the fifth anniversary of the date of determination of impairment; or (2) the claim deadline, which may not be later than the first anniversary of the date of determination of impairment. (b-1) If an impaired title insurance company is in receivership proceedings outside of this state, the claim deadline is the first anniversary of the date of determination of impairment. (c) Subject to the approval of the commissioner, the association shall establish: (1) procedures for filing claims with the association; and (2) acceptable forms of proof of covered claims. (d) The association shall pay claims in the order the association considers reasonable, including payment as claims are received from the claimants or in groups or categories of claims. (e) The association may not pay a claimant an amount exceeding the amount of the claimant's covered claim. (f) On payment of the last timely filed covered claim, the association is discharged from the association's obligations under this chapter. This subsection does not discharge the association of obligations related to pending litigation.