Tex. Insurance Code § 884.206
This is the official text of Tex. Insurance Code § 884.206, part of Texas’s Insurance Code — regulates insurance companies and the policies they sell.
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§ 884.206. COMMISSIONER MAY REQUIRE LARGER CAPITAL AND SURPLUS AMOUNTS.
Official statutory text
(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.
(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.
Status: in_force · Read it on the official government site
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