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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 10. PROPERTY AND CASUALTY INSURANCE |
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Subtitle A. GENERAL PROVISIONS |
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Chapter 1806. PROHIBITED PRACTICES AND REBATES RELATED TO POLICIES |
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Subchapter B. PROVISIONS APPLICABLE TO AUTOMOBILE INSURANCE |
Sec. 1806.058. PARTICIPATING POLICIES
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(a) This subchapter, Subtitle C, and Subchapter A, Chapter 5, may not be construed to prohibit:
(1) a stock company, mutual insurance company, reciprocal or interinsurance exchange, or Lloyd's plan from operating under this subchapter, Subchapter A, Chapter 5, and Subtitle C; or
(2) a stock company, mutual insurance company, reciprocal or interinsurance exchange, or Lloyd's plan from issuing participating policies.
(b) A distribution of profits or dividends to insureds may not take effect or be paid until the commissioner approves the distribution. The commissioner may not approve a distribution of profits or dividends until the insurer has provided adequate reserves. The reserves must be computed on the same basis for all classes of insurers operating under this subchapter, Subtitle C, and Subchapter A, Chapter 5.