Sec. 882.305. IMPAIRMENT OF UNENCUMBERED SURPLUS. (a) If one-third or more of a mutual life insurance company's unencumbered surplus as required by Section 882.301 is impaired, the company shall correct the impairment not later than the 60th day after the date the surplus is impaired.
(b) A company that does not correct an impairment of surplus as required by Subsection (a) may not write insurance in this state until the company corrects the impairment.
(c) In determining whether a company's surplus is impaired, the company shall compute its liabilities in the manner provided by state law.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle E - Mutual and Fraternal Companies and Related Entities
Chapter 882 - Mutual Life Insurance Companies
Subchapter G. Unencumbered Surplus Requirements
Section 882.301. Amount of Unencumbered Surplus
Section 882.302. Exemption for Certain Companies
Section 882.303. Unencumbered Surplus Less Than $25,000
Section 882.304. Investment of Excess Unencumbered Surplus
Section 882.305. Impairment of Unencumbered Surplus
Section 882.306. Impairment of Unencumbered Surplus; Appointment of Receiver