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Texas Insurance Code - INS § 404.053. Remedy for Impairment

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) The commissioner shall order an insurer to remedy an impairment of the insurer's surplus, aggregate surplus, or aggregate of guaranty fund and surplus, as applicable, by bringing the surplus to an acceptable level specified by the commissioner, or to cease engaging in business in this state, if the commissioner determines that:

(1) the surplus required by Section 822.054, 822.202, 822.203, 822.205, 822.210, 822.211, or 822.212 of a stock insurance company engaged in the kind of insurance business described by the company's certificate of authority:

(A) is impaired by more than 50 percent;  or

(B) is less than the minimum level of surplus required by risk-based capital and surplus rules adopted by the commissioner;  or

(2) the required aggregate of guaranty fund and surplus of a Lloyd's plan, or the required aggregate surplus of a reciprocal or interinsurance exchange or of a mutual company, other than a life insurance company, engaged in the kind of insurance business described by the insurer's certificate of authority:

(A) is impaired by more than 25 percent;  or

(B) is less than the minimum level of surplus required by risk-based capital and surplus rules adopted by the commissioner.

(b) After issuing an order described by Subsection (a), the commissioner shall immediately institute any proceeding necessary to determine what further actions the commissioner will take in relation to the matter.

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Cite this article: FindLaw.com - Texas Insurance Code - INS § 404.053. Remedy for Impairment - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-404-053/

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