Sec. 942.155. FINANCIAL REQUIREMENTS. (a) An exchange shall maintain at all times an unencumbered surplus over and above all liabilities that is at least equal to the minimum capital stock and surplus required of a stock insurance company engaged in the same kinds of business.
(b) An exchange shall maintain at all times the reserves required by the laws of this state or by rules adopted by the commissioner to be maintained by stock insurance companies engaged in the same kinds of business.
(c) An exchange shall maintain the required assets as to:
(1) minimum surplus requirements, as provided by Section 822.204; and
(2) other funds, as provided by the provisions of Subchapter B, Chapter 424, other than Sections 424.052, 424.072, and 424.073.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.120, eff. April 1, 2009.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle G - Lloyd's Plan and Reciprocal and Interinsurance Exchanges
Chapter 942 - Reciprocal and Interinsurance Exchanges
Subchapter D. Operation, Powers, and Duties of Exchange
Section 942.151. Subscriber Liability for Certain Contingent Premiums
Section 942.152. Subscriber Limited Liability Based on Certain Minimum Capital and Surplus
Section 942.153. Prior Authority Not Affected
Section 942.154. Statements Relating to Indemnity Amounts
Section 942.155. Financial Requirements
Section 942.156. Issuance of Fidelity and Surety Bond Insurance; Deposit Required
Section 942.157. Transactions Between Certain Insurers and Affiliated Exchanges