Texas Insurance Code

§ 882.403 — CONTINGENCY RESERVE REQUIREMENTS

IN § 882.403Title 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's contingency reserve as authorized by this subchapter must be:

(1)invested as provided by law; and

(2)used only to pay death claims and dividends to policyholders.

(b)If the interest and earnings from the investment of a company's contingency reserve exceed the amount of reserve authorized by Section 882.401 or 882.402, the company shall pay the excess amount to the policyholders of the company in the form of dividends as provided by law.

Legislative history

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