Texas Insurance Code

§ 887.203 — ISSUANCE OF LIFE INSURANCE POLICY BY CERTAIN ASSOCIATIONS

IN § 887.203Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 887. PROVISIONS APPLICABLE TO CERTAIN MUTUAL ASSESSMENT COMPANIES · Art. E. POWERS AND DUTIES RELATING TO INSURANCE AND COVERAGES

Statute text

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(a)A local mutual aid association or statewide mutual assessment company that has a mortuary fund and expense fund with a combined value of at least $100,000 greater than the liabilities of the combined funds may issue a life insurance policy in the same manner as a company organized under Chapter 841.

(b)An insurance policy issued as provided by Subsection (a):

(1)may not insure an individual life for more than $5,000;

(2)must be reserved as required for a company organized under Chapter 841; and

(3)may be issued only on an endowment or limited pay basis.

Legislative history

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