SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 884.001 - Definition
In this chapter, "stipulated premium company" means a: (1) stipulated premium life insurance company; (2) stipulated premium accident insurance company; (3) stipulated premium life and...
- Texas Section 884.002 - Applicability Of Other Law To Company
(a) Except as expressly provided by this code, a provision of this code, other than this chapter, does not apply to a stipulated premium company...
SUBCHAPTER B FORMATION AND STRUCTURE OF STIPULATED PREMIUM INSURANCE COMPANY
- Texas Section 884.003 - Admitted Assets
A stipulated premium insurer may include among its admitted assets a net asset under Section 841.004. Added by Acts 2001, 77th Leg., ch. 1419, Sec....
- Texas Section 884.051 - Formation Of Company
(a) Five or more, but not more than 35, residents of this state may form a stipulated premium company. (b) To form a stipulated premium...
- Texas Section 884.052 - Articles Of Incorporation
(a) Articles of incorporation of a stipulated premium company must specify: (1) the name and place of residence of each incorporator; (2) the name of...
- Texas Section 884.053 - Company's Name
(a) The name of a stipulated premium company must contain the words "Insurance Company." (b) A stipulated premium company's name may not be so similar...
- Texas Section 884.054 - Capital Stock And Surplus Requirements
(a) A proposed stipulated premium company's capital stock must be in an amount of at least $200,000. (b) All of the capital stock required by...
- Texas Section 884.055 - Shares Of Stock
(a) The shares of stock of a stipulated premium company must have a par value of not less than $1 or more than $100. (b)...
- Texas Section 884.056 - Application For Charter
(a) To obtain a charter for a stipulated premium company under this chapter, the incorporators must pay a charter fee in an amount determined under...
- Texas Section 884.057 - Action By Commissioner And Department After Filing
(a) After the charter fee is paid and all items required for a charter under Section 884.056 are filed with the department, the commissioner shall...
- Texas Section 884.058 - Examination After Determination
After making a determination on an application under Section 884.057, the commissioner shall immediately make or cause to be made a full and thorough examination...
- Texas Section 884.059 - Action On Application
(a) In considering the application, the commissioner, not later than the 30th day after the date on which a hearing under Section 884.058 is completed,...
- Texas Section 884.060 - Beginning Of Corporate Existence
On receipt of the certified copy of documents under Section 884.059(c), the stipulated premium company becomes a body politic and corporate and the incorporators may...
SUBCHAPTER C AUTHORITY TO ENGAGE IN BUSINESS
- Texas Section 884.061 - Organizational Meeting
(a) After receipt of the certified copy of documents under Section 884.059(c), the incorporators shall promptly call a meeting of the stipulated premium company's shareholders....
- Texas Section 884.101 - Schedule Of Assets
Two or more officers of the stipulated premium company shall execute and file with the department: (1) a sworn schedule of each of the assets...
- Texas Section 884.102 - Temporary Certificate Of Authority
(a) If the commissioner makes a determination favorable to the applicants on all issues under Section 884.059(a), the department, on compliance with the requirements of...
SUBCHAPTER D MANAGEMENT OF STIPULATED PREMIUM COMPANY
- Texas Section 884.103 - Regular Certificate Of Authority
(a) If a direct reinsurance agreement described by Section 884.102(a) is entered into while the temporary certificate of authority is valid, the department shall promptly...
- Texas Section 884.151 - Conducting Shareholders' Meeting
(a) At a meeting of a stipulated premium company's shareholders, each shareholder is entitled to one vote for each fully paid share of stock appearing...
- Texas Section 884.152 - Board Of Directors
(a) Subject to the bylaws of the stipulated premium company, as adopted or amended by the shareholders or directors, the board of directors has full...
- Texas Section 884.153 - Election Of Directors
(a) On the second Tuesday of April of each year the shareholders of a stipulated premium company shall meet at the company's home office and...
- Texas Section 884.154 - Officers
(a) A stipulated premium company's directors shall choose one of the directors to serve as the company's president. (b) Other officers of the stipulated premium...
SUBCHAPTER E CAPITAL AND SURPLUS
- Texas Section 884.155 - Amendment Of Charter Or Articles
(a) The shareholders of a stipulated premium company by resolution may amend the company's charter or articles of incorporation at any shareholders' meeting. (b) The...
- Texas Section 884.201 - Form Of Capital And Surplus
After a charter is granted under this chapter, the stipulated premium company: (1) shall maintain the company's minimum capital at all times in a form...
- Texas Section 884.202 - Increase Or Decrease Of Capital Stock
(a) At any shareholders' meeting, shareholders of a stipulated premium company whose cumulative stock ownership represents a majority of the capital stock of the company...
- Texas Section 884.203 - Public Offering Of Capital Stock
A stipulated premium company may not make to the public an offering that is subject to The Securities Act (Article 581-1 et seq., Vernon's Texas...
- Texas Section 884.204 - Company's Repurchase Of Stock
(a) Subject to Section 884.202, a stipulated premium company may purchase in the name of the company outstanding shares of the company's capital stock as...
- Texas Section 884.205 - Impairment Of Capital Stock
(a) If, when computing the liabilities of a stipulated premium company under this chapter, one-third or more of the company's capital stock becomes impaired, the...
- Texas Section 884.206 - Commissioner May Require Larger Capital And Surplus Amounts
(a) The commissioner by rule may require a stipulated premium company that writes or assumes life insurance, annuity contracts, or accident and health insurance for...
SUBCHAPTER F GENERAL POWERS AND DUTIES OF STIPULATED PREMIUM COMPANY
- Texas Section 884.207 - New Business Prohibited When Capital Requirements Not Satisfied
(a) A stipulated premium company may not write new business in this state unless the company possesses the minimum capital required under this chapter. (b)...
- Texas Section 884.251 - Deposit Of Company's Funds
(a) A director, member of a committee, officer, or clerk of a stipulated premium company who has the duty of handling or investing the company's...
- Texas Section 884.252 - Payments To Officers, Directors, And Employees
(a) Unless first authorized by a vote of a stipulated premium company's board of directors or a committee of the board that has the duty...
- Texas Section 884.253 - Dividends
(a) A stipulated premium company may declare or pay a dividend to its shareholders only from the profits made by the company, not including surplus...
- Texas Section 884.254 - Transfer Of Stock
(a) A stipulated premium company's shares of stock are transferable on the company's books, in accordance with law and the bylaws of the company, by...
- Texas Section 884.255 - Use Of Certain Terms In Advertising
A stipulated premium company may not use in its advertising or representation of a policy the words "legal reserve company," "stock company," "old line legal...
SUBCHAPTER G POWERS AND DUTIES RELATING TO COVERAGES
- Texas Section 884.256 - Annual Statement; Filing Fee
(a) Except as provided by Section 884.406, not later than March 31 of each year a stipulated premium company shall: (1) prepare a statement showing...
- Texas Section 884.301 - Reinsurance Of Policy
(a) A stipulated premium company may reinsure on an individual indemnity policy basis any risk or part of a risk that the company underwrites or...
- Texas Section 884.302 - Limits On Life Insurance
(a) Until the amount of the surplus of a stipulated premium company is at least $50,000, the company may not insure one life for more...
- Texas Section 884.303 - Issuance Of Life Insurance Policies By Certain Companies
(a) A stipulated premium company that possesses capital and unencumbered surplus in a combined amount of at least $100,000 may issue life insurance policies as...
- Texas Section 884.304 - Life Insurance Of More Than $25,000
Sec. 884.304. LIFE INSURANCE OF MORE THAN $25,000. (a) Except as provided by this section, a stipulated premium company may not assume liability on a...
- Texas Section 884.305 - Premiums On Life Insurance Policies
The premiums charged on a life insurance policy issued by a stipulated premium company may not be less than the renewal net premium computed under...
- Texas Section 884.306 - Life Insurance Contract
A life insurance policy issued by a stipulated premium company constitutes the entire contract, except that if a copy of the application for the policy...
- Texas Section 884.307 - Issuance Of Annuity Contract
(a) A stipulated premium company that possesses capital and unencumbered surplus in a combined amount of at least $100,000 more than all of its liabilities,...
- Texas Section 884.308 - Limits On Amount Of Accident And Health Insurance Policies
(a) A stipulated premium company may not assume liability on or indemnify one person for any risk under one or more accident, health, or hospitalization...
- Texas Section 884.309 - Adjustment Of Premiums
(a) The board of directors of a stipulated premium company by resolution may, subject to this chapter, increase or otherwise adjust a rate of premium...
- Texas Section 884.310 - Agent
Each agent of a stipulated premium company must be licensed under Title 13. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June...
SUBCHAPTER H CONTENTS OF APPLICATIONS AND POLICIES
- Texas Section 884.311 - Law Governing Investments; Election
(a) A stipulated premium insurance company issuing life, health, or accident coverages or maintaining policies in force that were issued in accordance with Subchapter I...
- Texas Section 884.351 - General Requirements For Policy And Application Forms
(a) Each stipulated premium company policy or application form must contain on its face immediately after the name of the company "A Stipulated Premium Company."...
- Texas Section 884.352 - Requirements For Accident, Health, And Hospitalization Insurance Policies
An accident, health, or hospitalization insurance policy issued, reinsured, or assumed by a stipulated premium company must contain a premium redetermination clause that permits the...
- Texas Section 884.353 - Life Insurance Application Forms
(a) An application for a life insurance policy issued by a stipulated premium company must be signed by the applicant. If the applicant is a...
- Texas Section 884.354 - Life Insurance Policy Forms; Incontestability
(a) Each life insurance policy issued by a stipulated premium company must state on the front page: (1) the amount of death benefit to be...
- Texas Section 884.355 - Designation Of Beneficiaries
The designation of a beneficiary under a life insurance policy issued by a stipulated premium company must comply with Subchapter B, Chapter 1103, and Subchapter...
- Texas Section 884.356 - Life Insurance Benefit Reductions Or Increases
(a) A life insurance policy may provide for reduced benefits if the insured: (1) dies or is injured while engaged in: (A) military, naval, or...
SUBCHAPTER I AUTHORITY TO ISSUE OTHER COVERAGE
- Texas Section 884.357 - Form Approval
The approval of a form of an insurance policy issued by a stipulated premium company is governed by Chapter 1701. Added by Acts 2001, 77th...
- Texas Section 884.401 - Authority Cumulative
The authority provided by this subchapter is in addition to the authority provided by this chapter for the issuance of other insurance coverage. Added by...
- Texas Section 884.402 - Additional Coverage
A stipulated premium company that, at the time it begins to issue coverages under this subchapter, possesses the amounts of capital and unencumbered surplus equal...
- Texas Section 884.403 - Policy Requirements
(a) A policy issued under Section 884. 402(1) or (2) must be reserved and must comply with the law, including rules, applicable to a policy...
- Texas Section 884.404 - Capital And Surplus Requirements
(a) A stipulated premium company that issues any insurance coverage under this subchapter shall maintain at all times the capital and unencumbered surplus required under...
- Texas Section 884.405 - Agent; License
(a) An agent may not solicit or write any coverage authorized by this subchapter unless the agent: (1) holds a license issued under Chapter 4054;...
- Texas Section 884.406 - Annual Statement
A stipulated premium company that issues or maintains in force policies under this subchapter shall file the annual statement required by Section 884.256 not later...
- Texas Section 884.407 - Relationship Of Subchapter To Other Provisions Of Chapter
(a) Section 884.305 and Subchapter J do not apply to a policy issued under this subchapter. (b) The provisions of Sections 884.309 and 884.351 relating...
SUBCHAPTER J RESERVES
- Texas Section 884.408 - Implementation Of Subchapter
The commissioner shall adopt reasonable rules to implement this subchapter, including: (1) rules adopting mortality and reserving tables required by Sections 884.403(b)(1) and (3); and...
- Texas Section 884.451 - Reserves On Individual And Group Life Insurance Policies
(a) A stipulated premium company shall maintain reserves on each of its individual life insurance policies in accordance with the reserve standard adopted by the...
- Texas Section 884.452 - Reserves On Accident And Health Insurance Policies
A stipulated premium company shall maintain reserves on each accident and health insurance policy issued by the company in the manner required of a company...
- Texas Section 884.453 - Deficiency Reserve
(a) On the effective date of a direct reinsurance agreement under Subchapter L, the stipulated premium company shall compute: (1) the amount of the reserves...
- Texas Section 884.454 - Commissioner's Computation Of Reserve Liability
(a) As soon as practical each year, the department shall compute the reserve liability of each stipulated premium company that has outstanding insurance policies. (b)...
- Texas Section 884.455 - Required Securities
The commissioner shall require that a stipulated premium company have securities of the class and character required by Sections 425.203-425.228 in the amount of the...
SUBCHAPTER K DIRECT REINSURANCE AGREEMENTS
- Texas Section 884.456 - Increase Of Reserves
(a) If a stipulated premium company does not have the reserves required by this subchapter and the minimum capital required under this chapter, the company's...
- Texas Section 884.501 - Direct Reinsurance Agreements Between Stipulated Premium Companies
(a) Stipulated premium companies organized under this chapter may enter into a total or partial direct reinsurance agreement if the company assuming the policies under...
- Texas Section 884.502 - Direct Reinsurance Agreement With Legal Reserve Company
(a) A stipulated premium company may enter into a total or partial direct reinsurance agreement with a legal reserve life insurance company authorized to engage...
- Texas Section 884.503 - Direct Reinsurance Of Accident Or Health Insurance Policies
(a) In the direct reinsurance of a stipulated premium accident or health insurance policy under Section 884.502, the company assuming the policy under the agreement...
- Texas Section 884.504 - Direct Reinsurance Of Certain Policies
(a) A reinsurance agreement authorized by Section 884.502 for the direct reinsurance of life insurance policies or a combination of life and accident or health...
- Texas Section 884.505 - Effect Of Total Direct Reinsurance Agreement
(a) A stipulated premium company that enters into a total direct reinsurance agreement under Section 884.501 or 884.502 under which it is the ceding company...
SUBCHAPTER L DIRECT REINSURANCE AGREEMENTS WITH MUTUAL ASSESSMENT COMPANIES
- Texas Section 884.506 - Assumption Certificate
The company assuming a policy under a partial direct reinsurance agreement shall issue to the holder of the assumed policy an assumption certificate to be...
- Texas Section 884.551 - Definitions
In this subchapter: (1) "Mutual assessment company" means any entity regulated under Chapter 887 or 888. (2) "Net assets" means a company's funds that are...
- Texas Section 884.552 - Authority To Contract
A mutual assessment company may enter into a direct reinsurance agreement with a stipulated premium company in accordance with this subchapter. Added by Acts 2001,...
- Texas Section 884.553 - Reinsurance Agreement
(a) A reinsurance agreement under this subchapter must provide that the stipulated premium company is to assume the policies of the mutual assessment company. (b)...
- Texas Section 884.554 - Approval By Department
(a) A mutual assessment company's board of directors may determine by a majority vote to submit a proposed direct reinsurance agreement to the members of...
- Texas Section 884.555 - Members Meeting; Notice
(a) After the department approves a proposed direct reinsurance agreement, the board of directors of the mutual assessment company shall: (1) call a meeting of...
- Texas Section 884.556 - Members Meeting; Procedures
(a) In a meeting called under Section 884.555, a member may vote in person, by proxy to whomever the member designates, or by mail. (b)...
- Texas Section 884.557 - Submission Of Meeting Facts To Department
Not later than the 90th day after the date of the meeting of the members, all facts relating to the meeting, including the accounting of...
- Texas Section 884.558 - Effective Date Of Agreement
A direct reinsurance agreement that is ratified under Section 884.556 takes effect on the date specified in the agreement. Added by Acts 2001, 77th Leg.,...
- Texas Section 884.559 - Action After Agreement Ratification
(a) After ratification of the reinsurance agreement under Section 884.556, the mutual assessment company shall cease doing business and shall transfer all of its assets...
- Texas Section 884.560 - Assumption Certificate
Immediately after ratification of the reinsurance agreement under Section 884.556, the stipulated premium company shall issue to each member of the mutual assessment company an...
- Texas Section 884.561 - Adjustment Of Life Insurance Premiums
(a) If the premium charged on a life insurance policy assumed by the stipulated premium company is less than the renewal net premium computed under...
SUBCHAPTER M CONVERSION TO LEGAL RESERVE COMPANY
- Texas Section 884.562 - Approval Of Rate Adjustment
A stipulated premium company may not adjust a life insurance premium rate under this subchapter before: (1) obtaining the approval of the department; and (2)...
- Texas Section 884.601 - Authorization To Convert
(a) The shareholders of a stipulated premium company that possesses capital in an amount equal to at least $700,000, unencumbered surplus in an amount equal...
- Texas Section 884.602 - Assumption Certificate
(a) Not later than the 30th day after the date of a conversion under this subchapter, the converted company shall issue to each policyholder an...
SUBCHAPTER O GENERAL FINANCIAL REGULATION
- Texas Section 884.603 - Exemption From Capital And Surplus Requirements
(a) A stipulated premium company is exempt from the capital and surplus requirements of Section 884.601(a) if the company: (1) was organized before September 1,...
- Texas Section 884.701 - Hazardous Financial Condition, Supervision, Conservatorship, And Liquidation
Subchapter A, Chapter 404, and Chapters 441 and 443 apply to a stipulated premium company engaged in the business of insurance in this state. Added...