Texas Insurance Code - Section 422.051. Restrictions On Encumbrance Of Assets
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§ 422.051. RESTRICTIONS ON ENCUMBRANCE OF ASSETS. (a) An
insurer shall at all times maintain unencumbered assets in an
amount equal to the insurer's reserve liabilities.
(b) An insurer may not pledge or otherwise encumber:
(1) the insurer's assets in an amount that exceeds the
amount of the insurer's capital and surplus; or
(2) more than 10 percent of the insurer's reserve
assets.
(c) Notwithstanding any other provision of this section, on
application made to the commissioner, the commissioner may issue a
written order approving the pledge or encumbrance of an insurer's
asset in any amount if the commissioner determines that the pledge
or encumbrance will not adversely affect the insurer's solvency.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 421.002 422.001 422.002 422.003 422.004 422.005 422.006 422.051 422.052 422.053 422.054 423.001 423.002 423.003 423.051
Last modified: August 11, 2007
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