Tex. Ins. Code Section 881.057
Insufficient Membership: Consolidation or Discontinuation of Group, Club, or Class or Liquidation of Company

(a)

If membership of a group, club, or class of a statewide mutual assessment company is less than the number required by Section 881.054 (Minimum Membership Required), the company shall immediately notify:

(1)

the members of the group, club, or class; or

(2)

if the company has only one group, club, or class, the members of the company.

(b)

Not later than six months after a statewide mutual assessment company notifies the members of a group, club, or class under Subsection (a)(1), the company shall:

(1)

increase the membership of the group, club, or class to at least the number required by Section 881.054 (Minimum Membership Required);

(2)

consolidate the group, club, or class with another group, club, or class; or

(3)

discontinue the group, club, or class.

(c)

Not later than six months after a statewide mutual assessment company notifies the members of the company under Subsection (a)(2), the company shall increase the membership to at least the number required by Section 881.054 (Minimum Membership Required). If the membership is not increased to at least that number, the commissioner shall take steps to liquidate the company under Subchapter L, Chapter 887 (Provisions Applicable to Certain Mutual Assessment Companies).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.

Source: Section 881.057 — Insufficient Membership: Consolidation or Discontinuation of Group, Club, or Class or Liquidation of Company, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­881.­htm#881.­057 (accessed May 4, 2024).

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Accessed:
May 4, 2024

§ 881.057’s source at texas​.gov