Tex. Insurance Code § 862.151
This is the official text of Tex. Insurance Code § 862.151, part of Texas’s Insurance Code — regulates insurance companies and the policies they sell.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 862.151. REDUCTION OF CAPITAL STOCK AND PAR VALUE OF SHARES.
Official statutory text
(a) If the minimum surplus of a fire, marine, or inland marine insurance company is impaired in excess of the amount permitted under Subchapter B, Chapter 404, the commissioner may allow the company to amend its charter as provided by Sections 822.157 and 822.158 to reduce the amount of the company's capital stock and the par value of its shares in proportion to the extent of the permitted amount of impairment.
(b) A company acting under Subsection (a):
(1) may not reduce the par value of its shares below the sum computed under Section 822.055;
(2) may not deduct from the assets and property on hand more than $125,000;
(3) shall retain the remainder of the assets and property on hand as surplus assets;
(4) may not distribute any of the assets or property to the shareholders; and
(5) may not reduce the capital stock or surplus of the company to an amount less than the minimum capital and the minimum surplus required by Sections 822.202, 822.210, and 822.211, subject to Subchapter B, Chapter 404.
(b) A company acting under Subsection (a):
(1) may not reduce the par value of its shares below the sum computed under Section 822.055;
(2) may not deduct from the assets and property on hand more than $125,000;
(3) shall retain the remainder of the assets and property on hand as surplus assets;
(4) may not distribute any of the assets or property to the shareholders; and
(5) may not reduce the capital stock or surplus of the company to an amount less than the minimum capital and the minimum surplus required by Sections 822.202, 822.210, and 822.211, subject to Subchapter B, Chapter 404.
Status: in_force · Read it on the official government site
Need a lawyer in Texas?
Find a Texas lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.