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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES |
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Subtitle D. CASUALTY COMPANIES |
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Chapter 862. FIRE AND MARINE INSURANCE COMPANIES |
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Subchapter D. IMPAIRMENT OF SURPLUS |
Sec. 862.151. REDUCTION OF CAPITAL STOCK AND PAR VALUE OF SHARES
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(a) If the minimum surplus of a fire, marine, or inland marine insurance company is impaired in excess of the amount permitted under Subchapter B, Chapter 404, the commissioner may allow the company to amend its charter as provided by Sections 822.157 and 822.158 to reduce the amount of the company's capital stock and the par value of its shares in proportion to the extent of the permitted amount of impairment.
(b) A company acting under Subsection (a):
(1) may not reduce the par value of its shares below the sum computed under Section 822.055;
(2) may not deduct from the assets and property on hand more than $125,000;
(3) shall retain the remainder of the assets and property on hand as surplus assets;
(4) may not distribute any of the assets or property to the shareholders; and
(5) may not reduce the capital stock or surplus of the company to an amount less than the minimum capital and the minimum surplus required by Sections 822.202, 822.210, and 822.211, subject to Subchapter B, Chapter 404.