Texas Insurance Code - Section 404.053. Remedy For Impairment
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§ 404.053. REMEDY FOR IMPAIRMENT. (a) The commissioner
shall order an insurer to remedy an impairment of the insurer's
surplus, aggregate surplus, or aggregate of guaranty fund and
surplus, as applicable, by bringing the surplus to an acceptable
level specified by the commissioner, or to cease engaging in
business in this state, if the commissioner determines that:
(1) the surplus required by Section 822.054, 822.202,
822.203, 822.205, 822.210, 822.211, or 822.212 of a stock insurance
company engaged in the kind of insurance business described by the
company's certificate of authority:
(A) is impaired by more than 50 percent; or
(B) is less than the minimum level of surplus
required by risk-based capital and surplus rules adopted by the
commissioner; or
(2) the required aggregate of guaranty fund and
surplus of a Lloyd's plan, or the required aggregate surplus of a
reciprocal or interinsurance exchange or of a mutual company, other
than a life insurance company, engaged in the kind of insurance
business described by the insurer's certificate of authority:
(A) is impaired by more than 25 percent; or
(B) is less than the minimum level of surplus
required by risk-based capital and surplus rules adopted by the
commissioner.
(b) After issuing an order described by Subsection (a), the
commissioner shall immediately institute any proceeding necessary
to determine what further actions the commissioner will take in
relation to the matter.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 404.002 404.003 404.004 404.005 404.006 404.051 404.052 404.053 421.001 421.002 422.001 422.002 422.003 422.004 422.005
Last modified: August 11, 2007
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