Texas § 846.154 CASH RESERVE REQUIREMENTS.

Texas Statutes

§ 846.154 — CASH RESERVE REQUIREMENTS.

Texas § 846.154

Code INInsurance Code

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Bluebook

Tex. Insurance Code Code Ann. § 846.154 (2026).

Text

Sec. 846.154. CASH RESERVE REQUIREMENTS.

(a)The amount of cash reserves recommended under Section 846.153 (c)(2) may not be less than the greater of:

(1)20 percent of the total contributions in the preceding plan year; or

(2)20 percent of the total estimated contributions for the current plan year.

(b)Cash reserves required by this section must be:

(1)computed with proper actuarial regard for:

(A)known claims, paid and outstanding;

(B)a history of incurred but not reported claims;

(C)claims handling expenses;

(D)unearned premium;

(E)an estimate for bad debts;

(F)a trend factor; and

(G)a margin for error; and

(2)maintained in cash or federally guaranteed obligations of less than five-year maturity that have a fixed or recoverable principal amount or in other investments as the

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Sec. 846.154. CASH RESERVE REQUIREMENTS. (a) The amount of cash reserves recommended under Section 846.153 (c)(2) may not be less than the greater of:
(1) 20 percent of the total contributions in the preceding plan year; or
(2) 20 percent of the total estimated contributions for the current plan year.
(b) Cash reserves required by this section must be:
(1) computed with proper actuarial regard for:
(A) known claims, paid and outstanding;
(B) a history of incurred but not reported claims;
(C) claims handling expenses;
(D) unearned premium;
(E) an estimate for bad debts;
(F) a trend factor; and
(G) a margin for error; and
(2) maintained in cash or federally guaranteed obligations of less than five-year maturity that have a fixed or recoverable principal amount or in other investments as the commissioner may authorize by rule.