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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 E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES |
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Chapter 881. STATEWIDE MUTUAL ASSESSMENT COMPANIES |
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Subchapter B. STRUCTURE AND OPERATION OF STATEWIDE MUTUAL ASSESSMENT COMPANIES |
Sec. 881.057. INSUFFICIENT MEMBERSHIP: CONSOLIDATION OR DISCONTINUATION OF GROUP, CLUB, OR CLASS OR LIQUIDATION OF COMPANY
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(a) If membership of a group, club, or class of a statewide mutual assessment company is less than the number required by Section 881.054, the company shall immediately notify:
(1) the members of the group, club, or class; or
(2) if the company has only one group, club, or class, the members of the company.
(b) Not later than six months after a statewide mutual assessment company notifies the members of a group, club, or class under Subsection (a)(1), the company shall:
(1) increase the membership of the group, club, or class to at least the number required by Section 881.054;
(2) consolidate the group, club, or class with another group, club, or class; or
(3) discontinue the group, club, or class.
(c) Not later than six months after a statewide mutual assessment company notifies the members of the company under Subsection (a)(2), the company shall increase the membership to at least the number required by Section 881.054. If the membership is not increased to at least that number, the commissioner shall take steps to liquidate the company under Subchapter L, Chapter 887.