Texas Insurance Code

§ 882.654 — EXEMPTION FROM SURPLUS REQUIREMENTS

IN § 882.654Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 882. MUTUAL LIFE INSURANCE COMPANIES · Art. N. CONVERSION OF CERTAIN MUTUAL ASSESSMENT COMPANIES OR ASSOCIATIONS TO MUTUAL LIFE INSURANCE COMPANIES

Statute text

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(a)A mutual assessment company or association is exempt from the surplus requirements of Section 882.653 if the company or association:

(1)possesses an unencumbered surplus of at least $200,000; and

(2)converted to a mutual life insurance company before September 1, 1999.

(b)A mutual assessment company or association that is exempt under Subsection (a) and that was converted on or after September 1, 1989, shall immediately increase its surplus to an amount that satisfies Section 882.653 on:

(1)a change of control of at least 50 percent of the voting securities of the converted company or association; or

(2)if the converted company or association or the holding company that controls the converted company or association, if any, is not controlled by voting securities, a change of at least 50 percent of the ownership of the converted company or association or its holding company.

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Legislative history

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