Texas Insurance Code

§ 887.355 — DIVISION OF FUNDS: CERTAIN LIFE INSURANCE CERTIFICATES WITH NO RATE INCREASE

IN § 887.355Title 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

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(a)This section applies to a life insurance certificate in force on December 31, 1965, on which the assessment rate has not been increased.

(b)An association may:

(1)deposit in a mortuary fund at least the net renewal premium, based on the reserve table adopted by the association; and

(2)deposit in an expense fund the remaining portion of the premium.

(c)This section does not apply to an association operating on an assessment-as-needed basis.

Legislative history

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