Sec. 886.104. BENEFITS AUTHORIZED. (a) Except as provided by Subsection (b), a local mutual aid association may provide only for the payment of death benefits. An association may not provide for old age benefits or benefits for accidental injury or sickness.
(b) A local mutual aid association organized before March 21, 1929, that provides for the payment of death, old age, and accident benefits may continue to provide those benefits.
(c) The policy issued by the association must clearly state the benefits provided.
(d) A local mutual aid association may not issue a policy providing for:
(1) a level premium;
(2) guaranteed benefits; or
(3) surrender of loan values.
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 886 - Local Mutual Aid Associations
Subchapter C. Powers and Duties of Association
Section 886.101. General Powers of Association
Section 886.102. Applicability of Texas Non-Profit Corporation Act
Section 886.103. Articles of Association, Constitution, and Bylaws
Section 886.104. Benefits Authorized
Section 886.105. Territorial Limitations
Section 886.106. Connection With Other Associations Prohibited
Section 886.107. Annual Statement; Filing Fee