 |
Texas Statutes (Last Updated: January 4, 2014) |
 |
INSURANCE CODE |
|
Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES |
|
Subtitle E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES |
|
Chapter 883. MUTUAL INSURANCE COMPANIES OTHER THAN MUTUAL LIFE INSURANCE COMPANIES |
|
Subchapter D. POWERS, DUTIES, AND OPERATION OF COMPANY |
Sec. 883.155. ISSUANCE OF POLICY FOR CASH PREMIUM ONLY
-
(a) A domestic mutual insurance company may not issue an insurance policy for a cash premium only unless:
(1) the company possesses surplus above all liabilities in an amount at least equal to the minimum capital and surplus required of a stock insurance company engaging in the same kinds of insurance;
(2) the company files with the department:
(A) an application for the issuance of this type of policy; and
(B) a certified copy of the resolution of the company's board of directors authorizing the issuance; and
(3) the commissioner approves the documents filed under Subdivision (2).
(b) A mutual insurance company that issues a policy for a cash premium only may waive all contingent premiums in any outstanding policies.
(c) A foreign mutual insurance company authorized to engage in the business of insurance in this state may issue an insurance policy for a cash premium only and may waive contingent premiums on any of its outstanding policies in the same manner and subject to the same requirements as a mutual insurance company under this section that is engaged in the same kinds of insurance.