Texas Insurance Code - Section 403.053. Acquired Earned Surplus
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§ 403.053. ACQUIRED EARNED SURPLUS. (a) This section
applies only to:
(1) a stock domestic insurance company authorized to
engage in the business of life, accident, or health insurance in
this state;
(2) a stock foreign or alien life, health, or accident
insurance company;
(3) a stock insurance company authorized to engage in
the business of property, casualty, or fire insurance; and
(4) a domestic Lloyd's plan, reciprocal or
interinsurance exchange, or title insurance company.
(b) In determining the amount of "surplus profits arising
from the insurer's business" or "earned surplus" for the purpose of
paying dividends to shareholders, the insurer may include the
acquired earned surplus of an insurance subsidiary acquired by the
insurer to the extent that:
(1) the inclusion is permitted by an order of the
commissioner made in accordance with commissioner rules; and
(2) the earned surplus of the acquired subsidiary on
the date of acquisition that exists on the date of the
commissioner's order is not otherwise reflected in the insurer's
earned surplus.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 402.102 402.103 402.104 403.001 403.002 403.051 403.052 403.053 403.101 403.102 404.001 404.002 404.003 404.004 404.005
Last modified: August 11, 2007
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