Sec. 882.403. CONTINGENCY RESERVE REQUIREMENTS. (a) A mutual life insurance company's contingency reserve as authorized by this subchapter must be:
(1) invested as provided by law; and
(2) used only to pay death claims and dividends to policyholders.
(b) If the interest and earnings from the investment of a company's contingency reserve exceed the amount of reserve authorized by Section 882.401 or 882.402, the company shall pay the excess amount to the policyholders of the company in the form of dividends as provided by law.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Section: Previous 882.352 882.353 882.354 882.355 882.356 882.401 882.402 882.403 882.404 882.405 882.451 882.452 882.453 882.454 882.455 NextLast modified: September 28, 2016