Texas Insurance Code
§ 887.353 — DIVISION OF FUNDS: CERTAIN LIFE INSURANCE CERTIFICATES
IN § 887.353Title 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. H. MORTUARY AND EXPENSE FUNDS
Statute text
View on source(a)This section applies to a life insurance certificate insuring the life of one or more individuals issued:
(1)after December 31, 1965; or
(2)before December 31, 1965, and on which the assessment rate has been increased based on an age other than age on the date the certificate was issued.
(b)To the extent consistent with this subchapter, an association shall divide collected assessments into at least two funds.
(c)An association shall deposit in a mortuary fund a portion of the association's assessments at least equal to the renewal net premium computed at the age of issue or some other advanced age in accordance with the reserve standard adopted by the association. The association may pay from the mortuary fund only:
(1)fund claims under insurance certificates;
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Legislative history
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.