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Texas Insurance Code - Section 425.003. Certain Insurers: Required Deposits Of Securities; Additional Deposits And Withdrawals

Legal Research Home > Texas Lawyer > Insurance Code > Texas Insurance Code - Section 425.003. Certain Insurers: Required Deposits Of Securities; Additional Deposits And Withdrawals

§ 425.003. CERTAIN INSURERS:  REQUIRED DEPOSITS OF 
SECURITIES;  ADDITIONAL DEPOSITS AND WITHDRAWALS.  (a) A life 
insurance company that, before August 28, 1961, issued or assumed 
the obligations of policies or annuity contracts that were 
registered as provided by Article 3.18, as that article existed 
before August 28, 1961, shall have on deposit with the department 
securities of the character described by Section 425.002 in an 
amount equal to or greater than the aggregate net value of the 
company's outstanding registered policies and annuity contracts in 
force.
	(b)  To comply with Subsection (a), a life insurance company 
shall periodically make additional deposits of securities in 
amounts of not less than $5,000. A company whose deposits exceed the 
aggregate net value of the company's outstanding registered 
policies and annuity contracts in force may periodically withdraw 
the excess in amounts of not less than $5,000.  A company may at any 
time withdraw any of the company's deposited securities by 
depositing in their place securities of equal value to the 
securities replaced and of a character authorized by this chapter.
	(c)  A life insurance company may at any time collect the 
interest, rents, and other income from the company's securities on 
deposit.
	(d)  The net value of each policy or annuity contract subject 
to this section is the policy's or contract's value according to the 
standard prescribed by state law when the first premium on the 
policy or contract is paid, minus the amount of any liens the life 
insurance company has against the policy or contract not to exceed 
the policy's or contract's value.
	(e)  The department shall hold a life insurance company's 
securities on deposit with the department under this section in 
trust for the benefit of all holders of the company's outstanding 
policies and annuity contracts that were registered as provided by 
Article 3.18, as that article existed before August 28, 1961.
	(f)  A life insurance company that has outstanding 
registered policies or annuity contracts in force may not reinsure 
all or any part of that outstanding business, other than in a 
company authorized to engage in business in this state.

Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.           

Last modified: August 11, 2007