Sec. 841.204. EXEMPTION FROM REQUIRED INCREASE OF CAPITAL AND SURPLUS. (a) Except as otherwise provided by this chapter, a domestic insurance company that after September 1, 1991, had less than the minimum amount of capital and surplus required for a newly incorporated company under Section 841.054 may continue to transact the kinds of business for which it holds a certificate of authority.
(b) The insurance company shall immediately increase the amount of its capital to the required amount of capital under Section 841.054 if there is:
(1) a change in the control of at least 50 percent of the voting securities of the insurance company;
(2) a change in the control of at least 50 percent of the voting securities of a holding company controlling the insurance company; or
(3) a change in control of at least 50 percent by any other method of control if the insurance company or holding company is not controlled by voting securities.
(c) For purposes of Subsection (b), a transfer of ownership that occurs because of death, regardless of whether the decedent died testate or intestate, may not be considered a change in the control of an insurance company or holding company if ownership is transferred solely to one or more individuals, each of whom would be an heir of the decedent if the decedent had died intestate.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
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