Texas Insurance Code

§ 882.251 — LIMITED AUTHORITY TO BORROW MONEY

IN § 882.251Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 882. MUTUAL LIFE INSURANCE COMPANIES · Art. F. GENERAL FINANCIAL REQUIREMENTS

Statute text

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(a)Except as provided by this subchapter, a mutual life insurance company may not borrow money for any purpose other than to pay a death loss.

(b)A company may not incur a debt on an account for which any part of the company's assets that exceeds the assets represented by or derived from the expense loading in the premiums collected by the company is subject to execution on a judgment.

(c)Subsection (b) does not prohibit a company from incurring a debt on an account:

(1)under a policy issued by the company; or

(2)to borrow money to pay a death loss.

Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.