Tex. Ins. Code Section 884.603
Exemption from Capital and Surplus Requirements

(a)

A stipulated premium company is exempt from the capital and surplus requirements of Section 884.601 (Authorization to Convert)(a) if the company:

(1)

was organized before September 1, 1989;

(2)

possesses capital in an amount equal to at least $100,000 and unencumbered surplus in an amount equal to at least $100,000; and

(3)

converted to a company that operates under Chapter 841 (Life, Health, or Accident Insurance Companies) before September 1, 1999.

(b)

A stipulated premium company that is exempt under Subsection (a) shall immediately increase its capital and surplus to amounts that satisfy Section 884.601 (Authorization to Convert)(a) on:

(1)

a change of control of at least 50 percent of the voting securities of the converted company; or

(2)

if the converted company or the holding company that controls the converted company, if any, is not controlled by voting securities, a change of at least 50 percent of the ownership of the converted company or its holding company.

(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 a converted stipulated premium 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 884.603 — Exemption from Capital and Surplus Requirements, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­884.­htm#884.­603 (accessed Jun. 5, 2024).

884.001
Definition 884.002
Applicability of Other Law to Company 884.003
Admitted Assets 884.051
Formation of Company 884.052
Articles of Incorporation 884.053
Company’s Name 884.054
Capital Stock and Surplus Requirements 884.055
Shares of Stock 884.056
Application for Charter 884.057
Action by Commissioner and Department After Filing 884.058
Examination After Determination 884.059
Action on Application 884.060
Beginning of Corporate Existence 884.061
Organizational Meeting 884.101
Schedule of Assets 884.102
Temporary Certificate of Authority 884.103
Regular Certificate of Authority 884.151
Conducting Shareholders’ Meeting 884.152
Board of Directors 884.153
Election of Directors 884.154
Officers 884.155
Amendment of Charter or Articles 884.201
Form of Capital and Surplus 884.202
Increase or Decrease of Capital Stock 884.203
Public Offering of Capital Stock 884.204
Company’s Repurchase of Stock 884.205
Impairment of Capital Stock 884.206
Commissioner May Require Larger Capital and Surplus Amounts 884.207
New Business Prohibited When Capital Requirements Not Satisfied 884.251
Deposit of Company’s Funds 884.252
Payments to Officers, Directors, and Employees 884.253
Dividends 884.254
Transfer of Stock 884.255
Use of Certain Terms in Advertising 884.256
Annual Statement 884.301
Reinsurance of Policy 884.302
Limits on Life Insurance 884.303
Issuance of Life Insurance Policies by Certain Companies 884.305
Premiums on Life Insurance Policies 884.306
Life Insurance Contract 884.307
Issuance of Annuity Contract 884.308
Limits on Amount of Accident and Health Insurance Policies 884.309
Adjustment of Premiums 884.310
Agent 884.311
Law Governing Investments 884.351
General Requirements for Policy and Application Forms 884.352
Requirements for Accident, Health, and Hospitalization Insurance Policies 884.353
Life Insurance Application Forms 884.354
Life Insurance Policy Forms 884.355
Designation of Beneficiaries 884.356
Life Insurance Benefit Reductions or Increases 884.357
Form Approval 884.401
Authority Cumulative 884.402
Additional Coverage 884.403
Policy Requirements 884.404
Capital and Surplus Requirements 884.405
Agent 884.406
Annual Statement 884.407
Relationship of Subchapter to Other Provisions of Chapter 884.408
Implementation of Subchapter 884.451
Reserves on Individual and Group Life Insurance Policies 884.452
Reserves on Accident and Health Insurance Policies 884.453
Deficiency Reserve 884.454
Commissioner’s Computation of Reserve Liability 884.455
Required Securities 884.456
Increase of Reserves 884.501
Direct Reinsurance Agreements Between Stipulated Premium Companies 884.502
Direct Reinsurance Agreement with Legal Reserve Company 884.503
Direct Reinsurance of Accident or Health Insurance Policies 884.504
Direct Reinsurance of Certain Policies 884.505
Effect of Total Direct Reinsurance Agreement 884.506
Assumption Certificate 884.551
Definitions 884.552
Authority to Contract 884.553
Reinsurance Agreement 884.554
Approval by Department 884.555
Members Meeting 884.556
Members Meeting 884.557
Submission of Meeting Facts to Department 884.558
Effective Date of Agreement 884.559
Action After Agreement Ratification 884.560
Assumption Certificate 884.561
Adjustment of Life Insurance Premiums 884.562
Approval of Rate Adjustment 884.601
Authorization to Convert 884.602
Assumption Certificate 884.603
Exemption from Capital and Surplus Requirements 884.701
Hazardous Financial Condition, Supervision, Conservatorship, and Liquidation
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 884.603’s source at texas​.gov