Texas Insurance Code

§ 884.251 — DEPOSIT OF COMPANY'S FUNDS

IN § 884.251Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 884. STIPULATED PREMIUM INSURANCE COMPANIES · Art. F. GENERAL POWERS AND DUTIES OF STIPULATED PREMIUM COMPANY

Statute text

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(a)A director, member of a committee, officer, or clerk of a stipulated premium company who has the duty of handling or investing the company's funds shall deposit or invest those funds in the corporate name of the company.

(b)An individual described by Subsection (a) may not:

(1)borrow the funds of the stipulated premium company;

(2)have an interest in any way in a loan, pledge, security, or property of the company, except as shareholder; or

(3)take or receive for the individual's use a fee, brokerage, commission, gift, or other consideration for, or on account of, a loan made by or on behalf of the company.

Legislative history

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