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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 882. MUTUAL LIFE INSURANCE COMPANIES |
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Subchapter F. GENERAL FINANCIAL REQUIREMENTS |
Sec. 882.253. LOANS TO COMPANY
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(a) An officer or director of a mutual life insurance company, or a person authorized under Chapter 825, may loan to the company money to:
(1) promote or conserve the company's business; or
(2) enable the company to comply with a legal requirement.
(b) The company may repay a loan and agreed interest, at an annual rate not to exceed 10 percent, from the surplus remaining after the company provides for the company's reserves and other liabilities.
(c) A loan under this section or interest on a loan is not otherwise a liability or claim against the company or any of its assets.
(d) A mutual life insurance company may not pay a commission or promotion expense in connection with a loan made to the company.
(e) A mutual life insurance company shall report in its annual statement the amount of each loan.