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Texas Laws | Insurance Code
INSURANCE CODE
TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES

Amended by: (19800)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.070, eff. April 1, 2009. (19801)

Sec. 862.154. CREATION AND DISPOSAL OF NEW STOCK. (19802)(Text)

(a) A fire, marine, or inland marine insurance company that complies with Sections 822.155, 822.157, and 822.158 may: (19803)

(1) create new stock; (19804)

(2) dispose of the new stock according to applicable law; and (19805)

(3) issue new certificates for the new stock. (19806)

(b) The insurance company shall sell any new stock created under Subsection (a) for an amount sufficient to make up any impairment of the company's required minimum capital and to make up the surplus of the company as required by Section 822.054 or 822.210, subject to Subchapter B, Chapter 404, but may not impair the capital of the company. (19807)

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. (19808)

Amended by: (19809)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.071, eff. April 1, 2009. (19810)

SUBTITLE E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES (19811)(Text)

CHAPTER 881. STATEWIDE MUTUAL ASSESSMENT COMPANIES (19812)(Text)
Sec. 881.001. DEFINITION. (19813)(Text)

In this chapter, "statewide mutual assessment company" means a corporation engaged in the statewide business of mutually protecting or insuring members' lives with money provided by assessments on those members. (19814)

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. (19815)

Sec. 881.002. LIMITED EXEMPTION FROM INSURANCE LAWS. (19816)(Text)

(a) Except as provided by this chapter and Chapter 887, the insurance laws of this state do not apply to a statewide mutual assessment company. (19817)

(b) A law enacted after June 20, 1933, does not apply to statewide mutual assessment companies unless statewide mutual assessment companies are expressly designated in the law. (19818)

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. (19819)

Sec. 881.003. COMPLIANCE WITH INSURANCE LAWS. (19820)(Text)

An individual, firm, unincorporated association, or corporation may not engage in business as a statewide mutual assessment company in this state unless the entity complies with this chapter and Chapter 887. (19821)

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. (19822)

Sec. 881.004. EXEMPTION FROM CHAPTER. (19823)(Text)

This chapter applies only to a statewide mutual assessment company. This chapter does not apply to a company operating as a local mutual aid association, fraternal benefit society, or reciprocal exchange or to a foreign assessment company operating under any other law in this state. (19824)

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. (19825)

Sec. 881.005. ORGANIZATION OF NEW COMPANY PROHIBITED. (19826)(Text)

A new statewide mutual assessment company may not be organized under this chapter. (19827)

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. (19828)

Sec. 881.006. ANNUAL STATEMENT. (19829)(Text)

(a) For the filing of each annual statement, the department shall charge the appropriate fee. The fee must be deposited in the Texas Department of Insurance operating account. (19830)

(b) Sections 201.001 and 201.002 apply to the fee. (19831)

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. (19832)

Amended by: (19833)

Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.072, eff. April 1, 2009. (19834)

SUBCHAPTER B. STRUCTURE AND OPERATION OF STATEWIDE MUTUAL ASSESSMENT COMPANIES (19835)(Text)
Sec. 881.051. AUTHORITY TO ACT AS STATEWIDE MUTUAL ASSESSMENT COMPANY. (19836)(Text)

A corporation may engage in business as a statewide mutual assessment company only if the corporation: (19837)

(1) was incorporated in this state under a law that was amended, repealed, or reenacted before June 20, 1933; (19838)

(2) was engaged in business as a statewide mutual assessment company in this state on December 31, 1932; (19839)

(3) does not have capital stock; and (19840)

(4) is not for profit. (19841)

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. (19842)

Sec. 881.052. APPLICABILITY OF TEXAS NON-PROFIT CORPORATION ACT. (19843)(Text)

(a) Except to the extent of any conflict with this code, the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) applies to a statewide mutual assessment company. The commissioner has each power and duty of, and shall perform each act to be performed by, the secretary of state under that Act with respect to statewide mutual assessment companies. (19844)

(b) On advance approval of the commissioner, a statewide mutual assessment company may pay dividends to its members. (19845)

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. (19846)

Sec. 881.053. SEPARATE GROUPS, CLUBS, OR CLASSES. (19847)(Text)

A statewide mutual assessment company may provide in its by-laws for the creation of separate groups, clubs, or classes based on reasonable classifications specified in the by-laws. (19848)

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. (19849)

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