Tex.
Ins. Code Section 425.003
Certain Insurers: Required Deposits of Securities; Additional Deposits and Withdrawals
(a)
A life insurance company that, before August 28, 1961, issued or assumed the obligations of policies or annuity contracts that were registered as provided by Article 3.18, as that article existed before August 28, 1961, shall have on deposit with the department securities of the character described by Section 425.002 (Certain Insurers: Deposit of Securities, Money, or Property in Amount of Legal Reserves) in an amount equal to or greater than the aggregate net value of the company’s outstanding registered policies and annuity contracts in force.(b)
To comply with Subsection (a), a life insurance company shall periodically make additional deposits of securities in amounts of not less than $5,000. A company whose deposits exceed the aggregate net value of the company’s outstanding registered policies and annuity contracts in force may periodically withdraw the excess in amounts of not less than $5,000. A company may at any time withdraw any of the company’s deposited securities by depositing in their place securities of equal value to the securities replaced and of a character authorized by this chapter.(c)
A life insurance company may at any time collect the interest, rents, and other income from the company’s securities on deposit.(d)
The net value of each policy or annuity contract subject to this section is the policy’s or contract’s value according to the standard prescribed by state law when the first premium on the policy or contract is paid, minus the amount of any liens the life insurance company has against the policy or contract not to exceed the policy’s or contract’s value.(e)
The department shall hold a life insurance company’s securities on deposit with the department under this section in trust for the benefit of all holders of the company’s outstanding policies and annuity contracts that were registered as provided by Article 3.18, as that article existed before August 28, 1961.(f)
A life insurance company that has outstanding registered policies or annuity contracts in force may not reinsure all or any part of that outstanding business, other than in a company authorized to engage in business in this state.
Source:
Section 425.003 — Certain Insurers: Required Deposits of Securities; Additional Deposits and Withdrawals, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.425.htm#425.003 (accessed Jun. 5, 2024).
