Sec. 882.403. CONTINGENCY RESERVE REQUIREMENTS. (a) A mutual life insurance company's contingency reserve as authorized by this subchapter must be:
(1) invested as provided by law; and
(2) used only to pay death claims and dividends to policyholders.
(b) If the interest and earnings from the investment of a company's contingency reserve exceed the amount of reserve authorized by Section 882.401 or 882.402, the company shall pay the excess amount to the policyholders of the company in the form of dividends as provided by 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 I. Contingency Reserve
Section 882.401. Amount of Contingency Reserve
Section 882.402. Excess Contingency Reserve
Section 882.403. Contingency Reserve Requirements
Section 882.404. Allocation of Contingency Reserve to Unencumbered Surplus
Section 882.405. Designation of Contingency Reserve as Unassigned Surplus