Texas Insurance Code

§ 882.401 — AMOUNT OF CONTINGENCY RESERVE

IN § 882.401Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 882. MUTUAL LIFE INSURANCE COMPANIES · Art. I. CONTINGENCY RESERVE

Statute text

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(a)A mutual life insurance company organized under this chapter may maintain a contingency reserve that exceeds the reserves and liabilities provided by this chapter. The amount of the contingency reserve may not exceed the greater of:

(1)$10,000;

(2)an amount that:

(A)equals 20 percent of the company's policy reserves and policy liabilities plus one percent of the amount of the company's life insurance in force; and

(B)does not exceed $750,000; or

(3)an amount that equals 20 percent of the company's policy reserves and policy liabilities.

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Legislative history

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