Sec. 2551.255. RUNOFF BALANCE. (a) At the end of each calendar year beginning in 1997, each domestic title insurer shall compute a total statutory premium reserve balance for all policy years before January 1, 1997, combined. The balance shall be computed as of the year-end evaluation date and as if Section 2551.252 were in effect during the 20-year period ending December 31, 1996. The balance computed under this subsection is the runoff balance.
(b) A domestic title insurer shall reduce its statutory premium reserve by an amount equal to the difference between:
(1) the runoff balance computed under Subsection (a); and
(2) the runoff balance computed for the preceding calendar year.
(c) The reduction of the statutory premium reserve under Subsection (b) is in addition to any other changes to the statutory premium reserve required by this subchapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Structure Texas Statutes
Subtitle B - Organization of Title Insurance Companies
Section 2551.251. Statutory Premium Reserve Required
Section 2551.252. Amounts Added to Reserve for Calendar Year 1997; Reductions
Section 2551.253. Amounts Added to Reserve for Calendar Years After 1997; Reductions
Section 2551.254. Transitional Release; Transitional Charge
Section 2551.255. Runoff Balance
Section 2551.256. Actuarial Certification
Section 2551.257. Supplemental Reserve
Section 2551.258. Reevaluation of Certain Reserve Requirements
Section 2551.259. Statutory Premium Reserve and Supplemental Reserve Fund
Section 2551.260. Effect of Insolvency or Dissolution
Section 2551.261. Reserve for Unpaid Losses and Loss Expenses