Tex. Insurance Code § 422.002
This is the official text of Tex. Insurance Code § 422.002, part of Texas’s Insurance Code — regulates insurance companies and the policies they sell.
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§ 422.002. PURPOSES.
Official statutory text
(a) The purposes of this chapter are to:
(1) require an insurer to maintain unencumbered assets in an amount equal to the insurer's policy reserve liabilities;
(2) provide preferential claims against assets in favor of an owner, beneficiary, assignee, certificate holder, or third-party beneficiary of an insurance policy; and
(3) prevent the pledge or encumbrance of assets in excess of certain amounts without a prior written order of the commissioner.
(b) This chapter and the powers granted and functions authorized by this chapter shall be exercised to accomplish the purposes of this chapter.
(1) require an insurer to maintain unencumbered assets in an amount equal to the insurer's policy reserve liabilities;
(2) provide preferential claims against assets in favor of an owner, beneficiary, assignee, certificate holder, or third-party beneficiary of an insurance policy; and
(3) prevent the pledge or encumbrance of assets in excess of certain amounts without a prior written order of the commissioner.
(b) This chapter and the powers granted and functions authorized by this chapter shall be exercised to accomplish the purposes of this chapter.
Status: in_force · Read it on the official government site
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