Texas Insurance Code - Section 425.006. Additional Reserves Required: Substandard Or Extra Hazardous Policies
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§ 425.006. ADDITIONAL RESERVES REQUIRED: SUBSTANDARD OR
EXTRA HAZARDOUS POLICIES. (a) If a life insurance company engaged
in business under the laws of this state has written or assumed
risks that are substandard or extra hazardous and has charged more
for the policies under which those risks are written or assumed than
the company's published premium rates, the commissioner shall, in
valuing those policies, compute and charge extra reserves on the
policies as necessary because of the extra hazard assumed and the
extra premium charged.
(b) If the commissioner determines, after notice and
hearing, that a particular risk or class of risks is substandard or
extra hazardous, a life insurance company may not, after the
determination is made, write or assume the particular risk or class
of risks unless the company charges an extra premium as necessary
because of the extra hazard assumed.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 424.217 424.218 425.001 425.002 425.003 425.004 425.005 425.006 425.007 425.008 425.009 425.051 425.052 425.053 425.054
Last modified: August 11, 2007
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