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Texas Insurance Code - INS § 822.205. Unencumbered Surplus or Guaranty Fund Requirements for Certain Insurance Companies

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

(a) Except as provided by Section 912.308, this section applies only to an insurance company that:

(1) writes insurance only in this state; and

(2) is not required by law to have capital stock.

(b) Notwithstanding any other provision of this subchapter other than Sections 822.212(b) and (c), an insurance company must have a minimum amount of unencumbered surplus or a minimum amount of guaranty fund and unencumbered surplus equal to the greater of:

(1) the amount of unencumbered surplus or the amount of guaranty fund and surplus, as appropriate, the company was required to have on August 31, 1991; or

(2) one-third of the company's net written premium for the preceding 12 months after deducting:

(A) lawfully ceded reinsurance; and

(B) any policy fees not ceded to reinsurers.

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Cite this article: FindLaw.com - Texas Insurance Code - INS § 822.205. Unencumbered Surplus or Guaranty Fund Requirements for Certain Insurance Companies - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-822-205/

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