Sec. 883.162. LOANS TO COMPANY. (a) A person, including a director, officer, or member of a mutual insurance company, may loan to the company money necessary:
(1) for the company to engage in the company's business; or
(2) to enable the company to comply with a legal requirement.
(b) The mutual insurance company may repay a loan and agreed interest, at an annual rate not to exceed 20 percent, only from the surplus remaining after the company provides for the company's reserves, other liabilities, and required surplus.
(c) A loan under this section or interest on a loan is not otherwise a liability or claim against the company or any of its assets.
(d) A mutual insurance company may not pay a commission or promotion expense in connection with a loan made to the company.
(e) A mutual insurance company shall report in its annual statement the amount of each loan made to the company.
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 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies
Subchapter D. Powers, Duties, and Operation of Company
Section 883.151. Authority to Write Certain Insurance
Section 883.152. Prior Authority Not Affected
Section 883.154. Maximum Premiums
Section 883.155. Issuance of Policy for Cash Premium Only
Section 883.156. Assessment on Policyholders
Section 883.157. Reinsurance of Policy
Section 883.158. Requirements for Companies Writing Bonds
Section 883.159. Necessary or Incidental Powers
Section 883.162. Loans to Company
Section 883.163. Immediate Notification When Assets Are Insufficient; Examination