Texas Insurance Code

§ 886.110 — AUTOMATIC DISSOLUTION

IN § 886.110Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 886. LOCAL MUTUAL AID ASSOCIATIONS · Art. C. POWERS AND DUTIES OF ASSOCIATION

Statute text

View on source

A local mutual aid association is dissolved automatically and forfeits its right to engage in the business of insurance if:

(1)the association's membership falls below 25 percent of the maximum value of the policy issued; or

(2)the association's membership falls below 50 percent of the maximum value of the policy issued and the association fails to notify each member of the amount paid on the preceding death claim when assessment is made.

Legislative history

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