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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 I. CONTINGENCY RESERVE |
Sec. 882.401. AMOUNT OF CONTINGENCY RESERVE
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(a) A mutual life insurance company organized under this chapter may maintain a contingency reserve that exceeds the reserves and liabilities provided by this chapter. The amount of the contingency reserve may not exceed the greater of:
(1) $10,000;
(2) an amount that:
(A) equals 20 percent of the company's policy reserves and policy liabilities plus one percent of the amount of the company's life insurance in force; and
(B) does not exceed $750,000; or
(3) an amount that equals 20 percent of the company's policy reserves and policy liabilities.
(b) In determining the amount of a company's policy reserves and policy liabilities for purposes of this section, the company may only include the following, after deducting the net value of the company's risks reinsured by other solvent assuming insurers:
(1) the company's reserves on outstanding life insurance policies and annuity contracts, contracts issued as supplemental to the policies or contracts or in connection with the policies or contracts or provisions included in policies or contracts that insure against disability or accidental death; and
(2) the company's liabilities for:
(A) optional modes of settlement; or
(B) dividends left on deposit at interest.