Texas Insurance Code
§ 883.162 — LOANS TO COMPANY
IN § 883.162Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 883. MUTUAL INSURANCE COMPANIES OTHER THAN MUTUAL LIFE INSURANCE COMPANIES · Art. D. POWERS, DUTIES, AND OPERATION OF COMPANY
Statute text
View on source(a)A person, including a director, officer, or member of a mutual insurance company, may loan to the company money necessary:
(1)for the company to engage in the company's business; or
(2)to enable the company to comply with a legal requirement.
(b)The mutual insurance company may repay a loan and agreed interest, at an annual rate not to exceed 20 percent, only from the surplus remaining after the company provides for the company's reserves, other liabilities, and required surplus.
(c)A loan under this section or interest on a loan is not otherwise a liability or claim against the company or any of its assets.
(d)A mutual insurance company may not pay a commission or promotion expense in connection with a loan made to the company.
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Legislative history
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.