Tex. Labor Code Section 407A.251
Financial Statement

(a)

Each group shall submit to the commissioner financial statements audited by an independent certified public accountant on or before the last day of the sixth month following the end of the group’s fiscal year.

(b)

The financial statement must include a balance sheet, income statement, and statement of cash flow and must be prepared on the basis of accounting principles generally accepted in the United States.

(c)

Loss reserves may be discounted subject to generally accepted accounting principles. The discounting must be documented in the notes accompanying the financial statement. Notwithstanding this subsection, dividends paid to members of the group must be based on undiscounted loss reserves.

(d)

The audited financial statements required by this section must be accompanied by an actuarial opinion on the adequacy of the group’s loss reserves, including the reasonableness of any reserve discount. The actuarial opinion must be given by a member in good standing of the American Academy of Actuaries and the Casualty Actuarial Society.
Added by Acts 2003, 78th Leg., ch. 275, Sec. 1, eff. Sept. 1, 2003.

Source: Section 407A.251 — Financial Statement, https://statutes.­capitol.­texas.­gov/Docs/LA/htm/LA.­407A.­htm#407A.­251 (accessed Jun. 5, 2024).

407A.001
Definitions 407A.002
Application of Chapter 407A.003
Merger of Groups 407A.004
Group Not Insurer 407A.005
Certificate of Approval Required 407A.006
Service of Process 407A.007
Hearings 407A.008
Rules 407A.009
Certificate of Authority Required for Certain Administrators and Service Companies 407A.051
Application for Initial Certificate of Approval 407A.052
Issuance of Certificate of Approval 407A.053
Financial Requirements 407A.054
Excess Insurance Requirements 407A.055
Premium Requirements 407A.056
Indemnity Agreement Requirements 407A.057
Additional Performance Bond Requirements 407A.101
Certificate of Approval 407A.151
Board Membership 407A.152
Board General Powers and Duties 407A.153
Prohibited Activities 407A.154
Group Funds 407A.201
Admission of Employer as Member 407A.251
Financial Statement 407A.252
Examination 407A.301
Maintenance Tax for Division and Research Functions of Department 407A.302
Maintenance Tax for Department 407A.303
Collection and Payment of Taxes 407A.304
Premium Tax 407A.351
Rates 407A.352
Audits 407A.353
Refunds 407A.354
Premium Payment Plan 407A.355
Deficits 407A.401
Prohibited Solicitation 407A.402
Fines 407A.403
Cease and Desist Orders 407A.404
Revocation of Certificate of Approval 407A.451
Definitions 407A.452
Guaranty Fund 407A.453
Board of Directors 407A.454
Immunity 407A.455
Board General Powers and Duties 407A.456
Plan of Operation 407A.457
Trust Fund 407A.458
Effect of Insolvency of Group 407A.459
Collection of Assessments from Group Members 407A.460
Payment of Benefits Through Guaranty Fund 407A.461
Possession of Security by Guaranty Fund 407A.462
Release of Claim Information to Guaranty Fund 407A.463
Guaranty Fund as Party in Interest 407A.464
Preferences 407A.465
Special Fund
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 407A.251’s source at texas​.gov