Texas § 964.054 RESERVES AND ACCOUNTING BASIS.

Texas Statutes

§ 964.054 — RESERVES AND ACCOUNTING BASIS.

Texas § 964.054

Code INInsurance Code

This text of Texas § 964.054 (RESERVES AND ACCOUNTING BASIS.) 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. § 964.054 (2026).

Text

Sec. 964.054. RESERVES AND ACCOUNTING BASIS.

(a)A captive insurance company shall maintain reserves in an amount stated in the aggregate to provide for the payment of all losses or claims for which the captive insurance company may be liable and that are:

(1)incurred on or before the date of the annual report under Section 964.060 , whether reported or unreported; and

(2)unpaid as of the date of the annual report under Section 964.060 .

(b)In addition to the reserves required by Subsection (a), a captive insurance company shall maintain reserves in an amount estimated to provide for the expenses of adjustment or settlement of the losses or claims described by Subsection (a).

(c)The captive insurance company shall use generally accepted accounting principles as an accounting basis exce

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Sec. 964.054. RESERVES AND ACCOUNTING BASIS. (a) A captive insurance company shall maintain reserves in an amount stated in the aggregate to provide for the payment of all losses or claims for which the captive insurance company may be liable and that are:
(1) incurred on or before the date of the annual report under Section 964.060 , whether reported or unreported; and
(2) unpaid as of the date of the annual report under Section 964.060 .
(b) In addition to the reserves required by Subsection (a), a captive insurance company shall maintain reserves in an amount estimated to provide for the expenses of adjustment or settlement of the losses or claims described by Subsection (a).
(c) The captive insurance company shall use generally accepted accounting principles as an accounting basis except that a captive insurance company that is required to hold a certificate of authority under another jurisdiction's insurance laws shall use statutory accounting principles.