Sec. 885.263. TREATMENT OF DEFERRED CLAIMS. (a) A deferred payment or an installment of a claim is considered to be a fixed liability on the occurrence of the contingency on which the payment or installment is to be paid. The amount of the liability is the present value of the future payment or installment at the rates of interest and mortality assumed by the fraternal benefit society for valuation.
(b) A fraternal benefit society shall maintain a fund sufficient to meet each fixed liability under Subsection (a) regardless of proposed future collections to meet the liability.
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 885 - Fraternal Benefit Societies
Subchapter F. Powers and Duties of Fraternal Benefit Society
Section 885.251. General Powers
Section 885.252. Powers of Certain Fraternal Benefit Societies
Section 885.253. Principal Office of Domestic Fraternal Benefit Society
Section 885.255. Indemnification or Reimbursement
Section 885.256. Indemnification or Reimbursement in Relation to Breach of Duty Prohibited
Section 885.257. Insurance for Directors, Officers, Employees, or Agents
Section 885.258. Management and Use of Assets and Funds
Section 885.259. Source of Funds
Section 885.260. Specified Payments
Section 885.261. Control of Fund by Lodge
Section 885.262. Investment of Fraternal Benefit Society Funds