Tex.
Ins. Code Section 861.251
Minimum Capital and Surplus
(a)
A general casualty company must have at least the minimum capital and surplus applicable to casualty, fidelity, guaranty, surety, and trust companies under Sections 822. 054, 822.210 (Commissioner May Require Larger Capital and Surplus Amounts), and 822.211 (Action of Commissioner When Capital or Surplus Requirements Not Satisfied). At the time of incorporation, the required capital and surplus must be in cash.(b)
After incorporation and issuance of a certificate of authority, a general casualty company shall invest the minimum capital and surplus as provided by Section 822.204 (Form of Capital and Surplus). The company shall invest all other funds of the company in excess of the minimum capital and surplus as provided by:(1)
a provision of Subchapter B, Chapter 424 (Investments for Certain Insurers), other than Section 424.052 (Additional General Investment Authority), 424.072 (Authorized Investments: Bonds Issued, Assumed, or Guaranteed in International Market), or 424.073 (Authorized Investments: Insurer Engaged in Business in Foreign Country); and(2)
Section 862.002 (Prohibitions Relating to Holding Real Property; Exceptions).(c)
A general casualty company may not loan any part of the company’s capital or paid in surplus to an officer of the company.
Source:
Section 861.251 — Minimum Capital and Surplus, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.861.htm#861.251 (accessed May 11, 2024).
