Sec. 887.505. EXCHANGE OF INSURANCE CERTIFICATES; RESERVES. (a) An association that converts to a stock legal reserve life insurance company shall exchange each insurance certificate in force on the date of the conversion for a legal reserve policy as provided by Section 887.457.
(b) On the exchange of mutual assessment insurance certificates for legal reserve policies as provided by Subsection (a), an association shall establish and maintain the reserves required for a company organized under Chapter 841 for legal reserve policies.
(c) After the reserves are established, the association's capital must remain unimpaired and in an amount equal to at least $700,000.
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 887 - Provisions Applicable to Certain Mutual Assessment Companies
Subchapter K. Conversion to Stock Legal Reserve Life Insurance Company
Section 887.501. Applicability of Subchapter
Section 887.502. Authorization to Convert
Section 887.503. Approval by Membership
Section 887.504. Amendment of Charter or Articles of Association Required
Section 887.505. Exchange of Insurance Certificates; Reserves
Section 887.506. Completion of Conversion
Section 887.507. Legal Effect of Conversion
Section 887.508. Exemption From Capital and Surplus Requirements
Section 887.509. Limits on Operation of Converted Association