Tex. Insurance Code § 886.702
This is the official text of Tex. Insurance Code § 886.702, 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.
§ 886.702. GROUNDS FOR DISSOLUTION OR FORFEITURE.
Official statutory text
(a) In addition to any other penalties imposed on a local mutual aid association or on its members or officers, an association is subject to dissolution and forfeiture of its right to engage in the business of insurance if the association:
(1) ceases to engage in the business of insurance;
(2) falls below the requirements of this chapter;
(3) engages in the business of insurance without a certificate of authority;
(4) fails to make reports as required by law;
(5) refuses to submit to examination by the department or pay the cost of an examination;
(6) engages in the business of insurance in a fraudulent, illegal, or dishonest manner; or
(7) violates this chapter.
(b) The attorney general shall, at the request of the department, file any action necessary to wind up the affairs of an association to which Subsection (a) applies and provide for the appointment of a receiver if necessary.
(c) An action under this section must be brought in Travis County.
(1) ceases to engage in the business of insurance;
(2) falls below the requirements of this chapter;
(3) engages in the business of insurance without a certificate of authority;
(4) fails to make reports as required by law;
(5) refuses to submit to examination by the department or pay the cost of an examination;
(6) engages in the business of insurance in a fraudulent, illegal, or dishonest manner; or
(7) violates this chapter.
(b) The attorney general shall, at the request of the department, file any action necessary to wind up the affairs of an association to which Subsection (a) applies and provide for the appointment of a receiver if necessary.
(c) An action under this section must be brought in Travis County.
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.