Texas Insurance Code - Section 421.001. Reserves Required
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§ 421.001. RESERVES REQUIRED. (a) An insurer shall
maintain reserves in an amount estimated in the aggregate to
provide for the payment of all losses or claims for which the
insurer may be liable and that are:
(1) incurred on or before the date of statement,
whether reported or unreported; and
(2) unpaid as of the date of statement.
(b) In addition to the reserves required by Subsection (a),
an insurer shall maintain reserves in an amount estimated to
provide for the expenses of adjustment or settlement of the losses
or claims described by that subsection.
(c) The commissioner shall adopt each current formula
recommended by the National Association of Insurance Commissioners
for establishing reserves for each line of insurance. Each insurer
writing a line of insurance to which a formula adopted under this
subsection applies shall establish reserves in compliance with that
formula.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 404.003 404.004 404.005 404.006 404.051 404.052 404.053 421.001 421.002 422.001 422.002 422.003 422.004 422.005 422.006
Last modified: August 11, 2007
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