Texas Insurance Code

§ 426.003 — MAINTENANCE OF RESERVES; NOTICE OF NONCOMPLIANCE

IN § 426.003Title 4. REGULATION OF SOLVENCY · Part B. RESERVES AND INVESTMENTS · Ch. 426. RESERVES FOR WORKERS' COMPENSATION INSURANCE COMPANIES

(a)If a workers' compensation insurance company's reserves are determined under this chapter to be:

(1)inadequate, the commissioner shall notify the company and require the company to establish and maintain reasonable additional reserves; or

(2)unreasonably large, the commissioner shall notify the company and require the company to reduce the amount of reserves to a reasonable amount.

(b)Not later than the 60th day after the date of notification of noncompliance under Subsection (a), the company shall:

(1)restore compliance as required by Subsection (a); and

(2)file a statement of restored compliance, accompanied by any documentation required by the commissioner.

Legislative history

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