Sec. 841.206. IMPAIRMENT OF CAPITAL AND SURPLUS. (a) An insurance company incorporated or authorized to do the lines of business authorized in this chapter may not have:
(1) the company's required capital impaired;
(2) more than 90 percent of the company's required minimum surplus impaired; or
(3) the surplus required under Section 841.205 impaired.
(b) If the commissioner determines that an insurance company's capital or surplus is impaired in violation of this section, the commissioner shall:
(1) order the company to immediately reduce the level of impairment to an acceptable level of impairment as specified by the commissioner or prohibit the company from engaging in the business of insurance in this state; and
(2) begin proceedings as necessary to determine any further actions with respect to the impairment.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.021, eff. September 1, 2005.
Section: Previous 841.155 841.156 841.201 841.202 841.203 841.204 841.205 841.206 841.207 841.251 841.252 841.253 841.254 841.255 841.256 NextLast modified: September 28, 2016