Texas Insurance Code

§ 404.003 — ORDER TO REMEDY CONDITION

IN § 404.003Title 4. REGULATION OF SOLVENCY · Part A. GENERAL PROVISIONS · Ch. 404. FINANCIAL CONDITION · Art. A. HAZARDOUS FINANCIAL CONDITION

Statute text

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(a)If the financial condition of an insurer, when reviewed as provided by Subsection (b), indicates a condition that might make the insurer's continued operation hazardous to the insurer's policyholders or creditors or to the public, the commissioner may, after notice and hearing, order the insurer to take action reasonably necessary to remedy the condition.

(b)The insurer's financial condition must be reviewed under Subsection (a) in conjunction with one or more of the following:

(1)the kinds and nature of risks insured;

(2)the loss experience and ownership of the insurer;

(3)the ratio of total annual premium and net investment income to commission expenses, general insurance expenses, policy benefits paid, and required policy reserve increases;

(4)the insurer's method of operation, affiliations, or investments;

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Legislative history

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