Texas Insurance Code - Section 427.052. Subordinated Liability Permitted
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Texas Lawyer > Insurance Code > Texas Insurance Code - Section 427.052. Subordinated Liability Permitted
§ 427.052. SUBORDINATED LIABILITY PERMITTED. (a) An
insurer or health maintenance organization may assume a
subordinated liability for repayment of a loan or advance described
by Section 427.051 and payment of interest on the loan or advance if
the insurer or health maintenance organization and the creditor
execute a written agreement stating that the creditor may be paid
only out of that portion of the insurer's or health maintenance
organization's surplus that exceeds the greater of:
(1) a minimum surplus amount set in the agreement; or
(2) a minimum surplus amount of $500,000.
(b) The department or commissioner may not require the
agreement to provide a minimum surplus amount that is different
from the amount described by this section.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 425.232 426.001 426.002 426.003 427.001 427.002 427.051 427.052 427.053 427.054 427.055 441.001 441.002 441.003 441.004
Last modified: August 11, 2007
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