TITLE: Relating to capital stock requirements for certain insurance companies.

SUMMARY: Relating to capital stock requirements for certain insurance companies.

FULL TEXT:
AN ACT relating to capital stock requirements for certain insurance companies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 822.056(d), Insurance Code, is amended to read as follows: (d) The shareholders of an insurance company authorizing shares of stock without par value must pay a total amount of at least $250,000 for the shares [in good faith subscribe and pay for shares representing at least 50 percent of the authorized shares without par value] before the company is granted a charter or has its charter amended to authorize the issuance of shares without par value. [The total amount paid for the shares must be at least $250,000.] SECTION 2. Section 841.057(c), Insurance Code, is amended to read as follows: (c) The shareholders of an insurance company authorizing shares of stock without par value must pay a total amount of at least $250,000 for the shares [in good faith subscribe and pay for shares representing at least 50 percent of the authorized shares without par value] before the company is granted a charter or has its charter amended to authorize the issuance of shares without par value. [The total amount paid for the shares must be at least $250,000.] SECTION 3. The following provisions of the Insurance Code are repealed: (1) Section 822.055(d); (2) Section 841.055(c); and (3) Section 841.056(d). SECTION 4. This Act takes effect September 1, 2023.