Texas § 887.505 EXCHANGE OF INSURANCE CERTIFICATES; RESERVES.

Texas Statutes

§ 887.505 — EXCHANGE OF INSURANCE CERTIFICATES; RESERVES.

Texas § 887.505

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Tex. Insurance Code Code Ann. § 887.505 (2026).

Text

Sec. 887.505. EXCHANGE OF INSURANCE CERTIFICATES; RESERVES.

(a)An association that converts to a stock legal reserve life insurance company shall exchange each insurance certificate in force on the date of the conversion for a legal reserve policy as provided by Section 887.457 .

(b)On the exchange of mutual assessment insurance certificates for legal reserve policies as provided by Subsection (a), an association shall establish and maintain the reserves required for a company organized under Chapter 841 for legal reserve policies.

(c)After the reserves are established, the association's capital must remain unimpaired and in an amount equal to at least $700,000.

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Sec. 887.505. EXCHANGE OF INSURANCE CERTIFICATES; RESERVES. (a) An association that converts to a stock legal reserve life insurance company shall exchange each insurance certificate in force on the date of the conversion for a legal reserve policy as provided by Section 887.457 .
(b) On the exchange of mutual assessment insurance certificates for legal reserve policies as provided by Subsection (a), an association shall establish and maintain the reserves required for a company organized under Chapter 841 for legal reserve policies.
(c) After the reserves are established, the association's capital must remain unimpaired and in an amount equal to at least $700,000.