Texas § 841.206 IMPAIRMENT OF CAPITAL AND SURPLUS.

Texas Statutes

§ 841.206 — IMPAIRMENT OF CAPITAL AND SURPLUS.

Texas § 841.206

Code INInsurance Code

This text of Texas § 841.206 (IMPAIRMENT OF CAPITAL AND SURPLUS.) 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. § 841.206 (2026).

Text

Sec. 841.206. IMPAIRMENT OF CAPITAL AND SURPLUS.

(a)An insurance company incorporated or authorized to do the lines of business authorized in this chapter may not have:

(1)the company's required capital impaired;

(2)more than 90 percent of the company's required minimum surplus impaired; or

(3)the surplus required under Section 841.205 impaired.

(b)If the commissioner determines that an insurance company's capital or surplus is impaired in violation of this section, the commissioner shall:

(1)order the company to immediately reduce the level of impairment to an acceptable level of impairment as specified by the commissioner or prohibit the company from engaging in the business of insurance in this state; and

(2)begin proceedings as necessary to determine any further actions with res

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Sec. 841.206. IMPAIRMENT OF CAPITAL AND SURPLUS. (a) An insurance company incorporated or authorized to do the lines of business authorized in this chapter may not have:
(1) the company's required capital impaired;
(2) more than 90 percent of the company's required minimum surplus impaired; or
(3) the surplus required under Section 841.205 impaired.
(b) If the commissioner determines that an insurance company's capital or surplus is impaired in violation of this section, the commissioner shall:
(1) order the company to immediately reduce the level of impairment to an acceptable level of impairment as specified by the commissioner or prohibit the company from engaging in the business of insurance in this state; and
(2) begin proceedings as necessary to determine any further actions with respect to the impairment.

Legislative History

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. Amended by: Acts 2005, 79th Leg., Ch. 728 (H.B. 2018 ), Sec. 11.021, eff. September 1, 2005.