Texas § 427.052 SUBORDINATED LIABILITY PERMITTED.

Texas Statutes

§ 427.052 — SUBORDINATED LIABILITY PERMITTED.

Texas § 427.052

Code INInsurance Code

This text of Texas § 427.052 (SUBORDINATED LIABILITY PERMITTED.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 427.052 (2026).

Text

Sec. 427.052. SUBORDINATED LIABILITY PERMITTED.

(a)An insurer or health maintenance organization may assume a subordinated liability for repayment of a loan or advance described by Section 427.051 and payment of interest on the loan or advance if the insurer or health maintenance organization and the creditor execute a written agreement stating that the creditor may be paid only out of that portion of the insurer's or health maintenance organization's surplus that exceeds the greater of:

(1)a minimum surplus amount set in the agreement; or

(2)a minimum surplus amount of $500,000.

(b)The department or commissioner may not require the agreement to provide a minimum surplus amount that is different from the amount described by this section.

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Sec. 427.052. SUBORDINATED LIABILITY PERMITTED. (a) An insurer or health maintenance organization may assume a subordinated liability for repayment of a loan or advance described by Section 427.051 and payment of interest on the loan or advance if the insurer or health maintenance organization and the creditor execute a written agreement stating that the creditor may be paid only out of that portion of the insurer's or health maintenance organization's surplus that exceeds the greater of:
(1) a minimum surplus amount set in the agreement; or
(2) a minimum surplus amount of $500,000.
(b) The department or commissioner may not require the agreement to provide a minimum surplus amount that is different from the amount described by this section.