Texas § 882.654 EXEMPTION FROM SURPLUS REQUIREMENTS.

Texas Statutes

§ 882.654 — EXEMPTION FROM SURPLUS REQUIREMENTS.

Texas § 882.654

Code INInsurance Code

This text of Texas § 882.654 (EXEMPTION FROM SURPLUS REQUIREMENTS.) 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. § 882.654 (2026).

Text

Sec. 882.654. EXEMPTION FROM SURPLUS REQUIREMENTS.

(a)A mutual assessment company or association is exempt from the surplus requirements of Section 882.653 if the company or association:

(1)possesses an unencumbered surplus of at least $200,000; and

(2)converted to a mutual life insurance company before September 1, 1999.

(b)A mutual assessment company or association that is exempt under Subsection (a) and that was converted on or after September 1, 1989, shall immediately increase its surplus to an amount that satisfies Section 882.653 on:

(1)a change of control of at least 50 percent of the voting securities of the converted company or association; or

(2)if the converted company or association or the holding company that controls the converted company or association, if any, is not

Free access — add to your briefcase to read the full text and ask questions with AI

Sec. 882.654. EXEMPTION FROM SURPLUS REQUIREMENTS. (a) A mutual assessment company or association is exempt from the surplus requirements of Section 882.653 if the company or association:
(1) possesses an unencumbered surplus of at least $200,000; and
(2) converted to a mutual life insurance company before September 1, 1999.
(b) A mutual assessment company or association that is exempt under Subsection (a) and that was converted on or after September 1, 1989, shall immediately increase its surplus to an amount that satisfies Section 882.653 on:
(1) a change of control of at least 50 percent of the voting securities of the converted company or association; or
(2) if the converted company or association or the holding company that controls the converted company or association, if any, is not controlled by voting securities, a change of at least 50 percent of the ownership of the converted company or association or its holding company.
(c) For purposes of Subsection (b), a transfer of ownership because of death, regardless of whether the decedent died testate or intestate, is not considered a change of control of a converted mutual assessment company or association or its holding company, if ownership is transferred only to one or more individuals, each of whom would have been an heir of the decedent if the decedent had died intestate.