Texas § 884.205 IMPAIRMENT OF CAPITAL STOCK.

Texas Statutes

§ 884.205 — IMPAIRMENT OF CAPITAL STOCK.

Texas § 884.205

Code INInsurance Code

This text of Texas § 884.205 (IMPAIRMENT OF CAPITAL STOCK.) 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. § 884.205 (2026).

Text

Sec. 884.205. IMPAIRMENT OF CAPITAL STOCK.

(a)If, when computing the liabilities of a stipulated premium company under this chapter, one-third or more of the company's capital stock becomes impaired, the company shall correct the impairment not later than the 60th day after the date the company becomes subject to this subsection by:

(1)reducing the company's capital stock;

(2)adjusting the premium rate if permitted by policy contract; or

(3)both reducing capital stock and adjusting the premium rate.

(b)If, when computing a stipulated premium company's reserve liability under this chapter, 50 percent or more of the company's capital stock becomes impaired, the commissioner may apply to a court for the appointment of a receiver to wind up the affairs of the company.

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Sec. 884.205. IMPAIRMENT OF CAPITAL STOCK. (a) If, when computing the liabilities of a stipulated premium company under this chapter, one-third or more of the company's capital stock becomes impaired, the company shall correct the impairment not later than the 60th day after the date the company becomes subject to this subsection by:
(1) reducing the company's capital stock;
(2) adjusting the premium rate if permitted by policy contract; or
(3) both reducing capital stock and adjusting the premium rate.
(b) If, when computing a stipulated premium company's reserve liability under this chapter, 50 percent or more of the company's capital stock becomes impaired, the commissioner may apply to a court for the appointment of a receiver to wind up the affairs of the company.

Legislative History

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. Amended by: Acts 2009, 81st Leg., R.S., Ch. 1309 (H.B. 2570 ), Sec. 3, eff. September 1, 2009.