Tex. Ins. Code Section 887.505
Exchange of Insurance Certificates; Reserves

(a)

An association that converts to a stock legal reserve life insurance company shall exchange each insurance certificate in force on the date of the conversion for a legal reserve policy as provided by Section 887.457 (Disbursement of Mortuary Fund).

(b)

On the exchange of mutual assessment insurance certificates for legal reserve policies as provided by Subsection (a), an association shall establish and maintain the reserves required for a company organized under Chapter 841 (Life, Health, or Accident Insurance Companies) for legal reserve policies.

(c)

After the reserves are established, the association’s capital must remain unimpaired and in an amount equal to at least $700,000.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.

Source: Section 887.505 — Exchange of Insurance Certificates; Reserves, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­887.­htm#887.­505 (accessed Jun. 5, 2024).

887.001
Definitions 887.002
Purpose 887.003
Applicability of Chapter 887.004
Inapplicability to Certain Organizations of Members of Religious Denomination 887.005
Department of Public Safety Employee Mutual Association 887.006
Construction 887.007
Deposit of Fees 887.008
Interpretation of Chapter by Commissioner 887.009
Rules 887.051
Bylaws 887.052
Amendment of Bylaws 887.053
Immunity 887.054
Financial Officer 887.055
Bond Requirements for Certain Persons 887.056
Recovery on Bond 887.057
Deposit 887.058
Change of Association’s Name 887.059
Books and Records 887.060
Annual Statement 887.061
Report on Condition of Association 887.062
Examination 887.063
Admitted Assets 887.064
Dividends 887.065
Merger 887.101
Certificate of Authority Required 887.102
Exempt Association 887.103
Refusal of Certificate of Authority or Permit 887.104
Refusal or Removal for Unworthiness of Public Trust 887.151
Classes of Members 887.152
Qualifying Membership in Association 887.153
Voting Rights of Members 887.154
Membership Records 887.155
Transfer of Membership or Merger of Classes 887.201
Limit on Life Insurance 887.202
Stipulated Premium Plan 887.203
Issuance of Life Insurance Policy by Certain Associations 887.204
Renewal or Reinstatement of Insurance Certificate 887.205
Life Insurance Certificate Beneficiaries 887.206
Payment of Claim 887.207
Exception to Full Payment Requirement: Assessment-as-needed Associations 887.208
Contested Claims 887.209
Venue 887.210
Reinsurance 887.251
General Requirements for Insurance Certificate and Application Forms 887.252
Application for Insurance Certificate 887.253
Life Insurance Certificate Forms 887.254
Health and Accident Insurance Certificate Forms 887.255
Life Insurance Benefit Reductions and Exclusions 887.256
Form Approval 887.301
Assessments Required 887.302
Authority to Increase Assessment Rates on Certain Insurance Certificates 887.303
Approval Required for Certain Rate Increases 887.304
Limit on Rate Increases 887.305
Expense Loading on Certain Insurance Certificates 887.306
Assessment-as-needed Associations: Payments on Certain Insurance Certificates 887.307
Revenue of Association 887.308
Suspension of Member for Nonpayment 887.309
Failure to Comply with Certain Commissioner Orders 887.351
Mortuary and Expense Funds 887.352
Limits on Use of Funds 887.353
Division of Funds: Certain Life Insurance Certificates 887.354
Division of Funds: Accident and Health Insurance Certificates and Certain Life Insurance Certificates 887.355
Division of Funds: Certain Life Insurance Certificates with No Rate Increase 887.356
Division of Funds: Assessment-as-needed Associations 887.357
Investment of Funds 887.358
Payment of Taxes on Mortuary Fund Income 887.359
Payment of Reinsurance Premium 887.360
Cost of Defending Contested Claims 887.401
Reserves on Individual Life Insurance Certificates 887.402
Reserves on Family Group Life Insurance Certificates 887.403
Issue Year and Issue Age in Certain Insurance Certificates 887.404
Reserves on Accident, Health, and Hospitalization Insurance Certificates 887.405
Computation of Reserve Liability 887.406
Increase of Reserves 887.407
Nonapplicability to Assessment-as-needed Associations 887.451
Authorization to Convert or Reinsure 887.452
Proposal for Conversion or Reinsurance 887.453
Members Meeting 887.454
Members Meeting 887.455
Completion and Legal Effect of Conversion or Reinsurance 887.456
Continuing Obligations of Converted or Reinsured Association 887.457
Disbursement of Mortuary Fund 887.501
Applicability of Subchapter 887.502
Authorization to Convert 887.503
Approval by Membership 887.504
Amendment of Charter or Articles of Association Required 887.505
Exchange of Insurance Certificates 887.506
Completion of Conversion 887.507
Legal Effect of Conversion 887.508
Exemption from Capital and Surplus Requirements 887.509
Limits on Operation of Converted Association 887.510
Increase of Capital and Surplus Required 887.551
Hazardous Financial Condition, Supervision, Conservatorship, and Liquidation 887.701
Unlawful Conversion 887.702
Diversion of Special Funds 887.703
Appropriation of Money 887.704
Violation of Commissioner Order 887.705
Other Violations
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 887.505’s source at texas​.gov