Texas Insurance Code

§ 887.509 — LIMITS ON OPERATION OF CONVERTED ASSOCIATION

IN § 887.509Title 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. K. CONVERSION TO STOCK LEGAL RESERVE LIFE INSURANCE COMPANY

Statute text

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Unless the association increases the association's capital and surplus to the minimum capital and surplus required for the organization of a stock legal reserve life insurance company under Chapter 841, an association that converts to a stock legal reserve life insurance company under this subchapter may not:

(1)operate in a territory as to which the association was not authorized under the converted association's previous charter or articles of association;

(2)insure a life for more than $5,000 in event of death; or

(3)declare or pay cash dividends.

Legislative history

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