Texas Insurance Code

§ 404.053 — REMEDY FOR IMPAIRMENT

IN § 404.053Title 4. REGULATION OF SOLVENCY · Part A. GENERAL PROVISIONS · Ch. 404. FINANCIAL CONDITION · Art. B. IMPAIRMENT OF STOCK OR SURPLUS

Statute text

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(a)The commissioner shall order an insurer to remedy an impairment of the insurer's surplus, aggregate surplus, or aggregate of guaranty fund and surplus, as applicable, by bringing the surplus to an acceptable level specified by the commissioner, or to cease engaging in business in this state, if the commissioner determines that:

(1)the surplus required by Section 822.054, 822.202, 822.203, 822.205, 822.210, 822.211, or 822.212 of a stock insurance company engaged in the kind of insurance business described by the company's certificate of authority:

(A)is impaired by more than 50 percent; or

(B)is less than the minimum level of surplus required by risk-based capital and surplus rules adopted by the commissioner; or

(2)the required aggregate of guaranty fund and surplus of a Lloyd's plan, or the required aggregate surplus of a reciprocal or interinsurance exchange or of a mutual company, other than a life insurance company, engaged in the kind of insurance business described by the insurer's certificate of authority:

(A)is impaired by more than 25 percent; or

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Legislative history

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