Texas Labor Code
§ 407A.355 — DEFICITS; INSOLVENCIES
LA § 407A.355Title 5. WORKERS' COMPENSATION · Part A. TEXAS WORKERS' COMPENSATION ACT · Ch. 407A. GROUP SELF-INSURANCE COVERAGE · Art. H. RATES; REFUNDS; PREMIUM PAYMENTS; RESERVES; DEFICITS
Statute text
View on source(a)For purposes of this section, "insolvent" means:
(1)the inability of a group to pay the group's outstanding lawful obligations as they mature in the regular course of business; or
(2)that the group's liabilities exceed the group's assets, determined without reducing liabilities by any reserve discount.
(b)If the assets of a group are at any time insufficient to enable the group to discharge its legal liabilities and other obligations and to maintain the reserves required under this chapter, the group shall make up the deficiency or levy an assessment on its members for the amount needed to make up the deficiency.
(c)In the event of a deficiency in any fund year, the deficiency shall be made up immediately from:
(1)surplus from a fund year other than the current fund year;
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Legislative history
Added by Acts 2003, 78th Leg., ch. 275, Sec. 1, eff. Sept. 1, 2003.