Tex. Ins. Code Section 841.204
Exemption from Required Increase of Capital and Surplus

(a)

Except as otherwise provided by this chapter, a domestic insurance company that after September 1, 1991, had less than the minimum amount of capital and surplus required for a newly incorporated company under Section 841.054 (Capital Stock and Surplus Requirements) may continue to transact the kinds of business for which it holds a certificate of authority.

(b)

The insurance company shall immediately increase the amount of its capital to the required amount of capital under Section 841.054 (Capital Stock and Surplus Requirements) if there is:

(1)

a change in the control of at least 50 percent of the voting securities of the insurance company;

(2)

a change in the control of at least 50 percent of the voting securities of a holding company controlling the insurance company; or

(3)

a change in control of at least 50 percent by any other method of control if the insurance company or holding company is not controlled by voting securities.

(c)

For purposes of Subsection (b), a transfer of ownership that occurs because of death, regardless of whether the decedent died testate or intestate, may not be considered a change in the control of an insurance company or holding company if ownership is transferred solely to one or more individuals, each of whom would be an heir of the decedent if the decedent had died intestate.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.

Source: Section 841.204 — Exemption from Required Increase of Capital and Surplus, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­841.­htm#841.­204 (accessed Jun. 5, 2024).

841.001
Definitions 841.002
Applicability of Chapter and Other Law 841.003
Applicability of Law Governing Corporations 841.004
Net Assets Defined 841.051
Formation of Company 841.052
Articles of Incorporation 841.053
Company Name 841.054
Capital Stock and Surplus Requirements 841.055
Shares of Stock 841.056
Requirements for Shares of Stock with Par Value 841.057
Requirements for Shares of Stock Without Par Value 841.058
Application for Charter 841.059
Action by Commissioner and Department After Filing 841.061
Action on Application 841.062
Beginning of Corporate Existence 841.063
Organization Meeting 841.101
Certificate of Authority Required 841.102
Schedule of Assets 841.103
Issuance of Certificate of Authority 841.104
Tax Payment Required for Issuance of Certain Certificates of Authority 841.151
Conducting Shareholders’ Meeting 841.152
Board of Directors 841.153
Election of Directors 841.154
Staggered Terms for Directors 841.155
Officers 841.156
Amendment of Charter or Articles 841.201
Form of Required Capital and Surplus 841.202
Authorized Shares 841.203
Company’s Repurchase of Stock 841.204
Exemption from Required Increase of Capital and Surplus 841.205
Commissioner May Require Larger Capital and Surplus Amounts 841.206
Impairment of Capital and Surplus 841.207
Actions of Commissioner When Capital and Surplus Requirements Not Satisfied 841.251
Evidence of Expenditures 841.252
Payments to Officers, Directors, and Employees 841.253
Life Insurance Company’s Payment of Dividends 841.254
Transfer of Stock 841.255
Annual Statement 841.256
Business in Separate Departments of Domestic Insurance Company 841.257
Kinds of Business Limited 841.258
Agents for Company that Ceases Writing New Business 841.259
Activities of Directors and Officers 841.260
Prohibited Commissions 841.261
Causes of Action 841.301
Limits on Amount of Accident and Health Insurance Policies 841.302
Limits on Life or Accidental Death Insurance 841.303
Entire Contract 841.351
Deposit with Comptroller 841.352
Issuance of Receipt for Deposit 841.353
Advertisement of Deposit 841.354
Access to Deposit 841.355
Withdrawal of Deposit After Merger, Consolidation, or Total Reinsurance 841.356
Situs of Deposit for Tax Purposes 841.357
Maintenance of Deposit 841.401
Purpose 841.402
Definitions 841.403
Organizational Documents 841.404
Certificate of Authority Required 841.405
Application for Certificate of Authority 841.406
Investment of Certain Surplus by Organizing Company 841.407
Officers and Directors 841.408
Issuance of Certificate of Authority 841.409
Scope of Certificate of Authority 841.410
Capital and Surplus 841.411
Foreclosure on Collateral 841.412
Minimum Authorized Investment Requirement After Credit for Reinsurance 841.413
Permitted Reinsurance 841.414
Reports on Reserves and Risk-based Capital 841.415
Other Laws Not Applicable 841.416
Applicability of Other Law 841.417
Guaranty Requirements 841.418
Sunset Provision 841.419
Certification of Actuarial Officer 841.420
Accounting and Financial Reporting 841.701
Revocation of Certificate of Authority 841.702
Appeal of Determination to Revoke Certificate 841.703
Certificate of Authority Void on Failure to Satisfy Judgment 841.704
False Statement, Report, or Other Document 841.705
Penalty for Failure to Invest or Report
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 841.204’s source at texas​.gov