Texas Insurance Code - INS § 887.405. Computation of Reserve Liability

(a) Each year, an association shall compute its reserve liability on all outstanding insurance certificates.

(b) To make the computation, an association:

(c) The reserve liability may be computed on not more than a one-year preliminary term.

(d) As soon as practical each year, the commissioner shall compute or cause to be computed the reserve liability of each association.  To make the computation, the commissioner may use group methods and approximate averages for fractions of a year.