Texas Insurance Code
§ 912.309 — POLICYHOLDER LOANS TO COMPANY
IN § 912.309Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part F. FARM AND COUNTY MUTUAL INSURANCE COMPANIES · Ch. 912. COUNTY MUTUAL INSURANCE COMPANIES · Art. G. REGULATION OF COUNTY MUTUAL INSURANCE COMPANY; FINANCIAL REQUIREMENTS
Statute text
View on source(a)A policyholder may loan to a county mutual insurance company money as necessary:
(1)for the company to engage in the company's business; or
(2)to enable the company to comply with a requirement of this chapter, including the unencumbered surplus requirement under Section 912.308.
(b)Subject to the approval of the commissioner, the county mutual insurance company may repay a loan and agreed interest, at an annual rate not to exceed 10 percent, only from the surplus remaining after the company provides for the company's reserves, other liabilities, and required surplus.
(c)A loan under this section or interest on a loan is not otherwise a liability or claim against the company or any of its assets.
(d)A county mutual insurance company may not pay a commission, promotion expense, or other bonus in connection with a loan made to the company.
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Legislative history
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.