Texas Insurance Code

§ 885.158 — POWERS AND DUTIES UNDER PRELIMINARY CERTIFICATE OF AUTHORITY; QUALIFICATION

IN § 885.158Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 885. FRATERNAL BENEFIT SOCIETIES · Art. D. AUTHORITY TO ENGAGE IN BUSINESS

Statute text

View on source

(a)On receipt of a preliminary certificate of authority from the department under Section 885.157, a fraternal benefit society:

(1)may solicit from its members applications for insurance benefits for the purpose of completing the society's qualification;

(2)shall collect from each applicant an amount equal to at least one regular monthly payment, in accordance with the society's table of rates as provided by the fraternal benefit society's laws; and

(3)shall issue to each applicant a receipt for the amount collected under Subdivision (2).

(b)A fraternal benefit society operating under a preliminary certificate of authority may not incur a liability other than for advance payments collected under Subsection (a)(2), issue a benefit certificate, or pay, allow, or offer or promise to pay or allow to any person a death or disability benefit until:

(1)the society has established 10 lodges into which at least 500 applicants have been initiated;

…

Legislative history

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