 |
Texas Statutes (Last Updated: January 4, 2014) |
 |
INSURANCE CODE |
|
Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES |
|
Subtitle C. LIFE, HEALTH, AND ACCIDENT INSURERS AND RELATED ENTITIES |
|
Chapter 841. LIFE, HEALTH, OR ACCIDENT INSURANCE COMPANIES |
|
Subchapter E. CAPITAL AND SURPLUS |
Sec. 841.206. IMPAIRMENT OF CAPITAL AND SURPLUS
-
(a) An insurance company incorporated or authorized to do the lines of business authorized in this chapter may not have:
(1) the company's required capital impaired;
(2) more than 90 percent of the company's required minimum surplus impaired; or
(3) the surplus required under Section 841.205 impaired.
(b) If the commissioner determines that an insurance company's capital or surplus is impaired in violation of this section, the commissioner shall:
(1) order the company to immediately reduce the level of impairment to an acceptable level of impairment as specified by the commissioner or prohibit the company from engaging in the business of insurance in this state; and
(2) begin proceedings as necessary to determine any further actions with respect to the impairment.