Texas Statutes
Chapter 406 - Special Deposits Required Under Potentially Hazardous Conditions
Section 406.003. Required Deposit: Standards and Criteria

Sec. 406.003. REQUIRED DEPOSIT: STANDARDS AND CRITERIA. The commissioner, in the commissioner's sole discretion, may require an insurer to make a deposit under this chapter if the commissioner determines that one of the following conditions, if not rectified, may potentially be hazardous to the insurer's policyholders, enrollees, or creditors, or to the public:
(1) the insurer's financial or operating condition, reviewed in conjunction with the kinds and nature of risks insured;
(2) the insurer's method of operation;
(3) the insurer's relationship with affiliates;
(4) the nature and amount of the insurer's investments;
(5) the insurer's contracts that may lead to a contingent liability; or
(6) the insurer's agreements with respect to guaranty and surety.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1C.001, eff. April 1, 2009.

Structure Texas Statutes