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Current as of January 01, 2024 | Updated by Findlaw Staff
(a) An association shall levy regular and periodic assessments on its membership in amounts and at intervals necessary to:
(1) meet the reasonable operating expenses of the association; and
(2) allow the association to pay in full any claims arising under its insurance certificates.
(b) An association may also levy an assessment for surplus funds.
(c) An association shall specify the purpose of an assessment.
(d) An assessment on a life insurance certificate issued after May 21, 1965, insuring the life of one or more individuals must be:
(1) in accordance with the reserve standard adopted by the association and approved by the commissioner, except that an association may use the 1956 Chamberlain Reserve Table with interest not to exceed 3- 1/2 percent a year; and
(2) in an amount sufficient to deposit in the mortuary fund an amount at least equal to the renewal net premiums computed in accordance with the reserve standard adopted by the association and approved by the commissioner.
Cite this article: FindLaw.com - Texas Insurance Code - INS § 887.301. Assessments Required - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-887-301/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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