Sec. 887.509. LIMITS ON OPERATION OF CONVERTED ASSOCIATION. Unless the association increases the association's capital and surplus to the minimum capital and surplus required for the organization of a stock legal reserve life insurance company under Chapter 841, an association that converts to a stock legal reserve life insurance company under this subchapter may not:
(1) operate in a territory as to which the association was not authorized under the converted association's previous charter or articles of association;
(2) insure a life for more than $5,000 in event of death; or
(3) declare or pay cash dividends.
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