Texas § 884.206 COMMISSIONER MAY REQUIRE LARGER CAPITAL AND SURPLUS AMOUNTS.

Texas Statutes

§ 884.206 — COMMISSIONER MAY REQUIRE LARGER CAPITAL AND SURPLUS AMOUNTS.

Texas § 884.206

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This text of Texas § 884.206 (COMMISSIONER MAY REQUIRE LARGER CAPITAL AND SURPLUS AMOUNTS.) 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.

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Tex. Insurance Code Code Ann. § 884.206 (2026).

Text

Sec. 884.206. COMMISSIONER MAY REQUIRE LARGER CAPITAL AND SURPLUS AMOUNTS.

(a)The commissioner by rule may require a stipulated premium company that writes or assumes life insurance, annuity contracts, or accident and health insurance for a risk to one person in an amount that exceeds $10,000 to maintain capital and surplus in amounts that exceed the minimum amounts required by this chapter because of:

(1)the nature and kind of risks the company underwrites or reinsures;

(2)the premium volume of risks the company underwrites or reinsures;

(3)the composition, quality, duration, or liquidity of the company's investment portfolio;

(4)fluctuations in the market value of securities the company holds; or

(5)the adequacy of the company's reserves.

(b)A rule adopted under Subsection (a) mus

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Sec. 884.206. COMMISSIONER MAY REQUIRE LARGER CAPITAL AND SURPLUS AMOUNTS. (a) The commissioner by rule may require a stipulated premium company that writes or assumes life insurance, annuity contracts, or accident and health insurance for a risk to one person in an amount that exceeds $10,000 to maintain capital and surplus in amounts that exceed the minimum amounts required by this chapter because of:
(1) the nature and kind of risks the company underwrites or reinsures;
(2) the premium volume of risks the company underwrites or reinsures;
(3) the composition, quality, duration, or liquidity of the company's investment portfolio;
(4) fluctuations in the market value of securities the company holds; or
(5) the adequacy of the company's reserves.
(b) A rule adopted under Subsection (a) must be designed to ensure the financial solvency of a stipulated premium company for the protection of policyholders and may not require that the total admitted assets of a company exceed 106 percent of its total liabilities.