SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 882.001 - Applicability Of This Chapter And Other Law
Except to the extent of any conflict with this chapter, a law governing a company organized under Chapter 841 applies to a mutual life insurance...
- Texas Section 882.002 - Examination Of Company
The following provisions apply to a mutual life insurance company organized under this chapter: (1) Subchapter A, Chapter 86; and (2) Sections 401.051, 401.052, 401.054-401.062,...
SUBCHAPTER B FORMATION AND STRUCTURE OF MUTUAL LIFE INSURANCE COMPANY
- Texas Section 882.003 - Annual Statement
A mutual life insurance company shall file an annual statement with the department. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June...
- Texas Section 882.051 - Authority To Form Company; Purpose
A mutual life insurance company may be formed under this chapter to insure the lives of individuals on the mutual level premium and legal reserve...
- Texas Section 882.052 - Formation Of Company; Articles Of Incorporation
(a) Nine or more persons who are residents of this state may form a mutual life insurance company by executing and acknowledging articles of incorporation...
- Texas Section 882.053 - Company's Name
(a) The name of a mutual life insurance company must contain the words "Mutual Life Insurance Company." (b) A mutual life insurance company's name may...
- Texas Section 882.054 - Initial Board Of Directors; Term
An initial director named as provided in Section 882.052 serves until: (1) the first annual election of directors; (2) the initial director's successor qualifies for...
- Texas Section 882.055 - Unencumbered Surplus Requirements
A mutual life insurance company must possess at the time of incorporation unencumbered surplus in an amount of at least $200,000. The unencumbered surplus may...
- Texas Section 882.056 - Application For Charter
(a) To obtain a charter for a mutual life insurance company under this chapter, the incorporators must pay the charter fee in the amount determined...
- Texas Section 882.057 - Application Process
(a) After the charter fee is paid and all items required for a charter under Section 882.056 are filed with the department, the commissioner shall...
- Texas Section 882.058 - Action On Application
(a) In considering the application, the commissioner shall determine if: (1) the minimum unencumbered surplus required by Section 882.055 is the bona fide property of...
SUBCHAPTER C AUTHORITY TO ENGAGE IN BUSINESS
- Texas Section 882.059 - Examination After Determination
After making a determination on an application under Section 882.058, the commissioner shall immediately make or cause to be made a full and thorough examination...
SUBCHAPTER D MANAGEMENT OF MUTUAL LIFE INSURANCE COMPANY
- Texas Section 882.101 - Issuance Of Certificate Of Authority
(a) After the examination of a mutual life insurance company under Section 882.059, the commissioner shall issue a certificate of authority to the company if...
- Texas Section 882.151 - Board Of Directors
(a) The board of directors of a mutual life insurance company controls the business of the company. (b) The board of directors consists of at...
- Texas Section 882.152 - Adoption Of Initial Bylaws
(a) At the first meeting of the initial board of directors of a mutual life insurance company after the department issues a certificate of authority...
- Texas Section 882.153 - Annual Meeting
(a) Except as provided by Subsection (b), after a mutual life insurance company is issued a certificate of authority under Section 882.101, the company shall...
- Texas Section 882.154 - Staggered Terms For Large Board Of Directors
(a) This section applies only to a mutual life insurance company whose board of directors consists of at least nine members. (b) The bylaws of...
- Texas Section 882.155 - Voting By Policyholders
(a) At an annual or special meeting of a mutual life insurance company, each policyholder is entitled to one vote for each $500 of insurance...
- Texas Section 882.156 - Officers
(a) The board of directors of a mutual life insurance company shall elect the following officers for the company: (1) a president; (2) the number...
- Texas Section 882.157 - Officer Bonds
The president, secretary, and treasurer of a mutual life insurance company shall each provide a bond for the protection of the company's policyholders: (1) in...
SUBCHAPTER E AGENTS
- Texas Section 882.158 - Bylaws Must Comply With Law
The bylaws of a mutual life insurance company may not be inconsistent with this chapter or other laws of this state. Added by Acts 2001,...
- Texas Section 882.201 - Applicability Of Subchapter
This subchapter does not apply to a mutual life insurance company organized under this chapter that has a surplus of at least the minimum amount...
- Texas Section 882.202 - Issuance Of License To Agent
On written request of a mutual life insurance company to which a certificate of authority has been issued under this chapter, the department shall issue...
SUBCHAPTER F GENERAL FINANCIAL REQUIREMENTS
- Texas Section 882.203 - Limitation On Agent Compensation
A contract between a mutual life insurance company and an agent of the company to which a license has been issued under Section 882.202 may...
- Texas Section 882.251 - Limited Authority To Borrow Money
(a) Except as provided by this subchapter, a mutual life insurance company may not borrow money for any purpose other than to pay a death...
- Texas Section 882.252 - Investment Of Money
(a) A mutual life insurance company shall invest the company's money in accordance with the law governing investments of life, health, and accident insurance companies...
SUBCHAPTER G UNENCUMBERED SURPLUS REQUIREMENTS
- Texas Section 882.253 - Loans To Company
(a) An officer or director of a mutual life insurance company, or a person authorized under Chapter 825, may loan to the company money to:...
- Texas Section 882.301 - Amount Of Unencumbered Surplus
(a) A mutual life insurance company that engages in the business of insurance in this state shall maintain an unencumbered surplus of at least $100,000...
- Texas Section 882.302 - Exemption For Certain Companies
A mutual life insurance company that was authorized and engaged in the business of insurance in this state before May 1, 1955, is not required...
- Texas Section 882.303 - Unencumbered Surplus Less Than $25,000
Sec. 882.303. UNENCUMBERED SURPLUS LESS THAN $25,000. A mutual life insurance company whose unencumbered surplus is less than $25,000 shall allocate at least 25 percent...
- Texas Section 882.304 - Investment Of Excess Unencumbered Surplus
A mutual life insurance company that is granted a charter under this chapter may invest that part of the company's unencumbered surplus that exceeds $100,000...
- Texas Section 882.305 - Impairment Of Unencumbered Surplus
(a) If one-third or more of a mutual life insurance company's unencumbered surplus as required by Section 882.301 is impaired, the company shall correct the...
SUBCHAPTER H DIVIDENDS
- Texas Section 882.306 - Impairment Of Unencumbered Surplus; Appointment Of Receiver
(a) If one-half or more of a mutual life insurance company's unencumbered surplus as required by Section 882.301 is impaired, the commissioner may apply to...
- Texas Section 882.351 - Policyholder's Entitlement To Dividend
A policyholder of a mutual life insurance company is entitled to a credit or payment of a dividend from that part of the company's divisible...
- Texas Section 882.352 - Accounting And Procedure For Allocation Of Divisible Surplus; Report To Commissioner
(a) On December 31 of each year, or as soon after as practicable, each mutual life insurance company shall determine the amount of surplus earned...
- Texas Section 882.353 - Department Approval Of Allocation; Revisions
(a) The department shall approve a mutual life insurance company's allocation of divisible surplus under Section 882.352 if the department finds that the allocation is...
- Texas Section 882.354 - Dividend Payment Method
(a) A dividend declared by a mutual life insurance company under this subchapter shall be paid in: (1) cash; or (2) the equivalent of the...
- Texas Section 882.355 - Limitations On Divisible Surplus
A mutual life insurance company's divisible surplus available for payment of dividends to the company's policyholders may not include: (1) any part of the company's...
SUBCHAPTER I CONTINGENCY RESERVE
- Texas Section 882.356 - Payment Of Dividends Not Required
This subchapter does not require a mutual life insurance company to pay a dividend to a policyholder if the unencumbered surplus acquired by the company...
- Texas Section 882.401 - Amount Of Contingency Reserve
(a) A mutual life insurance company organized under this chapter may maintain a contingency reserve that exceeds the reserves and liabilities provided by this chapter....
- Texas Section 882.402 - Excess Contingency Reserve
(a) The commissioner, for good cause shown, may issue an order authorizing a mutual life insurance company to maintain a contingency reserve that exceeds the...
- Texas Section 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...
- Texas Section 882.404 - Allocation Of Contingency Reserve To Unencumbered Surplus
If a mutual life insurance company's unencumbered surplus is less than $100,000, the company may allocate any part of the company's contingency reserve to the...
SUBCHAPTER J POLICY REQUIREMENTS
- Texas Section 882.405 - Designation Of Contingency Reserve As Unassigned Surplus
The contingency reserve described by this subchapter is and may be treated as unassigned surplus, including designating the contingency reserve as unassigned surplus in financial...
- Texas Section 882.451 - Applicability Of Certain Provisions
Sections 882.452, 882. 453, and 882.454 do not apply to a mutual life insurance company organized under this chapter that has a surplus of at...
- Texas Section 882.452 - Type Of Policy Authorized
A mutual life insurance company may issue a policy only on the participating plan with dividends payable annually as provided by Subchapter H. Added by...
- Texas Section 882.453 - Policy Form
An insurance policy issued by a mutual life insurance company must: (1) be on a form approved by the department; and (2) contain the following...
- Texas Section 882.454 - Limitation On Amount Of Policy Value For Certain Companies
If the total amount of a mutual life insurance company's insurance in force is less than $10 million, the company may not issue a policy...
SUBCHAPTER K TOTAL ASSUMPTION REINSURANCE AGREEMENTS
- Texas Section 882.455 - Table Of Guaranteed Values
(a) Each insurance policy issued by a mutual life insurance company must contain a table of guaranteed values. The guaranteed values become nonforfeitable not later...
SUBCHAPTER L MERGERS AND CONSOLIDATIONS
- Texas Section 882.501 - Total Assumption Reinsurance Agreements Between Life Insurance Companies
(a) A domestic mutual life insurance company and any other domestic or foreign life insurance company may enter into a total assumption reinsurance agreement if...
- Texas Section 882.551 - Applicability Of Subchapter
This subchapter applies only to a merger or consolidation in which at least one of the parties to the transaction is a mutual life insurance...
- Texas Section 882.552 - Authority To Merge Or Consolidate
A domestic or foreign mutual life insurance company may merge with a domestic or foreign mutual or stock legal reserve life insurance company or consolidate...
- Texas Section 882.553 - Proposed Plan Of Merger Or Consolidation; Filing With Commissioner
(a) If the boards of directors of at least two life insurance companies determine by majority vote to merge or consolidate, the boards of directors...
- Texas Section 882.554 - Hearing On Plan
As soon as practicable after a proposed plan is filed with the commissioner, the commissioner shall hold a hearing to determine whether to approve the...
- Texas Section 882.555 - Commissioner Determination On Plan
(a) As soon as practicable after the commissioner holds a hearing on a proposed plan under Section 882.554, the commissioner shall approve the plan unless...
- Texas Section 882.556 - Approval Of Plan By Policyholders
(a) As soon as practicable after receiving from the commissioner notice of approval of a proposed plan under Section 882.555, the board of directors of...
- Texas Section 882.557 - Domestic Stock Life Insurance Company; Approval Of Plan By Shareholders
On notice of approval of a proposed plan under Section 882.555, the board of directors of each domestic stock life insurance company that is a...
- Texas Section 882.558 - Foreign Life Insurance Company; Approval Of Plan By Policyholders Or Shareholders
On notice of approval of a proposed plan under Section 882.555, the board of directors of each foreign life insurance company that is a party...
- Texas Section 882.559 - Filing Of Affidavit Of Plan Approval; Issuance Of Certificate Of Merger Or Consolidation
(a) On the approval of a proposed plan under Section 882.556, 882.557, or 882.558, the president or a vice president and the secretary or an...
- Texas Section 882.560 - Effective Date Of Merger Or Consolidation
A merger or consolidation takes effect on the later of: (1) the date of issuance of the certificate of merger or consolidation; or (2) a...
- Texas Section 882.561 - Assumption Of Outstanding Insurance Policies
(a) On the effective date of a merger or consolidation under this subchapter, a new or surviving life insurance company resulting from the merger or...
- Texas Section 882.562 - Assumption Of Liabilities
On the effective date of a merger or consolidation under this subchapter, a new or surviving life insurance company resulting from the merger or consolidation...
- Texas Section 882.563 - Effect Of Merger Or Consolidation On Property
On the effective date of a merger or consolidation under this subchapter, the property rights, including any right of recovery, of each company that is...
- Texas Section 882.564 - Effect Of Merger Or Consolidation On Certain Investments
(a) This section applies to each investment of an affected life insurance company, including an investment in real property, that: (1) was authorized as a...
- Texas Section 882.565 - Effect Of Merger Or Consolidation On Divisible Surplus
(a) This section applies only to a mutual life insurance company that is a new company or the surviving company resulting from a merger or...
SUBCHAPTER M CONVERSION OF MUTUAL LIFE INSURANCE COMPANY TO STOCK LEGAL RESERVE LIFE INSURANCE COMPANY
- Texas Section 882.566 - Effect On Antitrust Laws
This subchapter does not affect in any manner the antitrust laws of this state. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff....
- Texas Section 882.601 - Authority To Convert To Stock Legal Reserve Life Insurance Company; Policyholder Authorization Required
A mutual life insurance company organized under this chapter may convert to a stock legal reserve life insurance company as provided by this subchapter only...
- Texas Section 882.602 - Amendment To Charter Or Articles Of Incorporation Required
If the policyholders of a mutual life insurance company authorize a conversion under Section 882.601, the board of directors and officers of the company shall...
- Texas Section 882.603 - Capital And Surplus Requirements
(a) The capital and surplus of the converted stock legal reserve life insurance company must be at least equal to the minimum capital and surplus...
- Texas Section 882.604 - Hearing
(a) After public notice, the commissioner shall hold a hearing on a conversion authorized under Section 882.601. (b) Any policyholder of the mutual life insurance...
- Texas Section 882.605 - Conversion On Commissioner Approval
A mutual life insurance company is converted to a stock legal reserve life insurance company if: (1) the company complies with this subchapter; and (2)...
- Texas Section 882.606 - Applicable Law After Conversion
After a mutual life insurance company is converted to a stock legal reserve life insurance company, the converted company is governed in the same manner...
SUBCHAPTER N CONVERSION OF CERTAIN MUTUAL ASSESSMENT COMPANIES OR ASSOCIATIONS TO MUTUAL LIFE INSURANCE COMPANIES
- Texas Section 882.607 - Other Types Of Conversion Not Prohibited
This subchapter does not prohibit a mutual life insurance company from converting to a stock legal reserve life insurance company by: (1) merger or consolidation;...
- Texas Section 882.651 - Authority To Convert
A mutual assessment company or association organized and operating under the laws of this state on May 17, 1943, may convert to a mutual life...
- Texas Section 882.652 - Voluntary Conversion
The department may not require a mutual assessment company or association to convert to a mutual life insurance company under this subchapter. Added by Acts...
- Texas Section 882.653 - Conversion Requirements
Except as provided by Section 882. 654, a mutual assessment company or association may convert to a mutual life insurance company only if the company...
- Texas Section 882.654 - Exemption From Surplus Requirements
(a) A mutual assessment company or association is exempt from the surplus requirements of Section 882.653 if the company or association: (1) possesses an unencumbered...
SUBCHAPTER O ENFORCEMENT PROVISIONS
- Texas Section 882.655 - Applicable Law After Conversion
After a mutual assessment company or association is converted to a mutual life insurance company, the converted company is governed by this chapter. Added by...
- Texas Section 882.701 - Applicability Of Subchapter
This subchapter does not apply to a mutual life insurance company organized under this chapter that has a surplus of at least the minimum amount...
- Texas Section 882.702 - Investment And Deposit Of Funds; Criminal Penalty
(a) A person commits an offense if the person is an officer or director of a mutual life insurance company and the person knowingly or...
- Texas Section 882.703 - Policy Form; Revocation Of Certificate
The department shall revoke the certificate of authority of a mutual life insurance company that issues a policy on a form that has not been...
- Texas Section 882.751 - Authority To Convert
A mutual life insurance company organized or operating under this chapter may convert by forming an insurance holding company based on a mutual plan and...
- Texas Section 882.752 - Application Of Other Law
Except to the extent of a conflict with this subchapter, Chapter 826 applies to conversion of a mutual life insurance company under this subchapter. Added...
- Texas Section 882.753 - Jurisdiction Of Commissioner
The commissioner retains jurisdiction over a company that converts under this subchapter. Added by Acts 2005, 79th Leg., Ch. 82 (S.B. 449), Sec. 1, eff....
- Texas Section 882.754 - Incorporation Requirements
A mutual insurance holding company that results from a conversion under this subchapter must be incorporated under and subject to this chapter and Chapter 22,...
- Texas Section 882.755 - Articles Of Incorporation
The articles of incorporation of a mutual insurance holding company that results from a conversion under this subchapter, and any amendments to the articles of...
- Texas Section 882.756 - Sale Of Securities
(a) A sale, issuance, or offering of securities under this subchapter is exempt from the registration and licensing provisions of The Securities Act (Article 581-1...