Tex.
Ins. Code Section 911.308
Surplus Requirements
(a)
A farm mutual insurance company organized between January 1, 1955, and May 21, 1973, shall maintain an unencumbered surplus of $2 for each $100 of insurance in force or an unencumbered surplus of $200,000, whichever amount is less.(b)
A farm mutual insurance company organized under this chapter on or after May 21, 1973, shall maintain an unencumbered surplus in cash of $2 for each $100 of insurance in force or an unencumbered surplus of $200,000, whichever amount is greater.(c)
A company described by Subsection (b) shall invest the minimum unencumbered surplus as provided by Section 822.204 (Form of Capital and Surplus). The company may invest funds in excess of the minimum unencumbered surplus as provided by the provisions of Subchapter B (General Investment Authority Specified by Law), Chapter 424 (Investments for Certain Insurers), other than Sections 424.052 (Additional General Investment Authority), 424.072 (Authorized Investments: Bonds Issued, Assumed, or Guaranteed in International Market), and 424.073 (Authorized Investments: Insurer Engaged in Business in Foreign Country).(d)
A company described by Subsection (b) shall, without delay, restore the minimum unencumbered surplus if the surplus is impaired. The department shall proceed as provided by Subchapter B (Impairment Prohibited), Chapter 404 (Financial Condition).
Source:
Section 911.308 — Surplus Requirements, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.911.htm#911.308 (accessed Jun. 5, 2024).
