Texas Life and Health Insurance Guaranty Association ("Association") was established by the Texas legislature to provide protection for Texas residents in the case of insolvency or liquidation. The Association provides this protection by funding or continuing insurance coverage, paying claims, and/or funding the transfer of policies to other insurance companies. A receiver is appointed by a court to take over an insurer when it becomes insolvent. The court will oversee the liquidation of assets and liabilities. However, the Association must manage the policies. In the amount of benefits and payments it made to policyholders, the Association becomes a claimant against the estate. The Association could recover some of its expenses to ensure policyholders as the insolvent insurance company's assets are liquidated. The Association's Board determines how much money is needed for each company to serve its policies. They then send an assessment (or bill) to all other members insurance companies. These are the approximately 1100 Texas-licensed insurance companies that sell policies covered by the Association. According to the Texas Insurance Code Chapter 463 (2012), the Association functions as required. The Commissioner of Insurance appoints the nine directors. The Commissioner of Insurance appoints five directors. Three of those five directors must come from one of Texas' top 50 premium writers. Four additional directors must be public and independent from the insurance industry. The Board meets quarterly in Austin. Special meetings are also held as needed. Meetings must be noticed in accordance with Texas Open Meetings Act. Director receives no compensation, but can be reimbursed for expenses related to Association activities. Each director must file a specific financial statement each year with the Texas Ethics Commission. Both the Board and Association are subject to statutes, their Plan of Operation and Bylaws.