reglab/housing_qa huggingface dataset:
TX Ins Code § 884.405 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter I. Authority to Issue Other Coverage|Section 884.405. Agent; License

Sec. 884.405.  AGENT; LICENSE.  (a)  An agent may not solicit or write any coverage authorized by this subchapter unless the agent:(1)  holds a license issued under Chapter 4054; and(2)  is appointed by the stipulated premium company for which the agent is soliciting and writing coverage under this subchapter.(b)  The commissioner may issue under Chapter 4054 a license for an agent to solicit and write any coverage authorized by this subchapter for a stipulated premium company.  Chapter 4054 applies to the stipulated premium company as if the company were a legal reserve life insurance company.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.087, eff. April 1, 2009.|
TX Ins Code § 884.406 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter I. Authority to Issue Other Coverage|Section 884.406. Annual Statement

Sec. 884.406.  ANNUAL STATEMENT.  A stipulated premium company that issues or maintains in force policies under this subchapter shall file the annual statement required by Section 884.256 not later than March 1 of each year.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.407 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter I. Authority to Issue Other Coverage|Section 884.407. Relationship of Subchapter to Other Provisions of Chapter

Sec. 884.407.  RELATIONSHIP OF SUBCHAPTER TO OTHER PROVISIONS OF CHAPTER.  (a)  Section 884.305 and Subchapter J do not apply to a policy issued under this subchapter.(b)  The provisions of Sections 884.309 and 884.351 relating to the adjustment of premiums do not apply to a life insurance policy issued under this subchapter.(c)  The department may not consider losses sustained by a stipulated premium company on a policy issued under this subchapter when applying Section 884.206 or 884.308 to the company's life insurance policies not issued under this subchapter.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.408 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter I. Authority to Issue Other Coverage|Section 884.408. Implementation of Subchapter

Sec. 884.408.  IMPLEMENTATION OF SUBCHAPTER.  The commissioner shall adopt reasonable rules to implement this subchapter, including:(1)  rules adopting mortality and reserving tables required by Sections 884.403(b)(1) and (3);  and(2)  reasonable and necessary rules for the content, form, and style of the notice and terms of the grace period required under Section 884.403(b)(2).|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.451 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter J. Reserves|Section 884.451. Reserves on Individual and Group Life Insurance Policies

Sec. 884.451.  RESERVES ON INDIVIDUAL AND GROUP LIFE INSURANCE POLICIES.  (a)  A stipulated premium company shall maintain reserves on each of its individual life insurance policies in accordance with the reserve standard adopted by the company and approved by the department.  The standard must provide reserves that in the aggregate are equal to at least the reserve amounts computed using the 1956 Chamberlain Reserve Table with interest that does not exceed 3-1/2 percent per year.  A stipulated premium company may use the 1956 Chamberlain Reserve Table.(b)  A stipulated premium company shall maintain reserves on family group life insurance policies on which a group premium is charged and under which the amount of a benefit depends on the sequence of deaths.  The amount of the reserves must be equal to the reserves that would be required under Subsection (a) on individual life insurance policies on the lives of:(1)  the two oldest living members of the family group, with the amount of insurance for those two members determined assuming that the elder of the two will die first;  or(2)  the living members of the family group, with the amount of insurance for each member of the family group determined assuming that each member will die first.(c)  A stipulated premium company may select the method to be used to compute the amount of the reserves under Subsection (b).|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.452 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter J. Reserves|Section 884.452. Reserves on Accident and Health Insurance Policies

Sec. 884.452.  RESERVES ON ACCIDENT AND HEALTH INSURANCE POLICIES.  A stipulated premium company shall maintain reserves on each accident and health insurance policy issued by the company in the manner required of a company authorized to issue that type of policy under Chapter 841.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.453 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter J. Reserves|Section 884.453. Deficiency Reserve

Sec. 884.453.  DEFICIENCY RESERVE.  (a)  On the effective date of a direct reinsurance agreement under Subchapter L, the stipulated premium company shall compute:(1)  the amount of the reserves required under this chapter on the policies assumed under the agreement;  and(2)  the amount of the net assets transferred to the stipulated premium company under the agreement.(b)  If the amount of the net assets transferred is not equal to the amount of the required reserve, the difference shall be designated and carried as a deficiency reserve.  The deficiency reserve does not create insolvency of the stipulated premium company if the company, beginning with the first calendar year that begins after the effective date of the direct reinsurance agreement, reduces the computed deficiency amount, including interest at the assumed rate, by at least 10 percent during each year as computed on December 31 of that year.  The reduction must result in the deficiency reserve being eliminated on December 31 of the year for which the 11th annual statement is filed after the company enters into the direct reinsurance agreement.  The required reduction in the deficiency reserve may not exceed the cumulative aggregate amount of 10 percent a year.(c)  If in any year a stipulated premium company has not reduced its deficiency reserve as required by Subsection (b), the company's board of directors by appropriate action shall increase premium rates by advancing the age of each insured at the date the insured's policy is issued or otherwise equitably adjust premium rates to correct that failure.  The board shall take that action not later than the 30th day after the date the reserves are computed.(d)  If the board does not comply with Subsection (c), the stipulated premium company is considered to be insolvent for purposes of this chapter.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.454 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter J. Reserves|Section 884.454. Commissioner's Computation of Reserve Liability

Sec. 884.454.  COMMISSIONER'S COMPUTATION OF RESERVE LIABILITY.  (a)  As soon as practical each year, the department shall compute the reserve liability of each stipulated premium company that has outstanding insurance policies.(b)  To make the computations, the department:(1)  shall use the net premium basis in accordance with the reserve table and interest rate adopted by the stipulated premium company and approved by the commissioner;  and(2)  may use group methods and approximate averages for fractions of a year.(c)  The reserve liability may be computed on not more than a one-year preliminary term with allowance for any deficiency reserve under Section 884.453.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.455 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter J. Reserves|Section 884.455. Required Securities

Sec. 884.455.  REQUIRED SECURITIES.  The commissioner shall require that a stipulated premium company have securities of the class and character required by Sections 425.203-425.228 in the amount of the reserve liability computed for the company under Section 884.454 less any deficiency reserve under Section 884.453 after all the debts and claims against the company and the minimum capital required by this chapter have been applied.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.088, eff. April 1, 2009.|
TX Ins Code § 884.456 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter J. Reserves|Section 884.456. Increase of Reserves

Sec. 884.456.  INCREASE OF RESERVES.  (a)  If a stipulated premium company does not have the reserves required by this subchapter and the minimum capital required under this chapter, the company's board of directors by appropriate action shall increase premium rates on policies in force by advancing the age of each insured at the date the insured's policy is issued or otherwise equitably adjust premium rates to correct the reserve inadequacy.  The board shall take that action not later than the 30th day after the date the reserves are computed.(b)  If the board of directors does not comply with Subsection (a), the stipulated premium company is treated as if the company had not corrected an impairment under Section 884.205(a).|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.501 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter K. Direct Reinsurance Agreements|Section 884.501. Direct Reinsurance Agreements Between Stipulated Premium Companies

Sec. 884.501.  DIRECT REINSURANCE AGREEMENTS BETWEEN STIPULATED PREMIUM COMPANIES.  (a)  Stipulated premium companies organized under this chapter may enter into a total or partial direct reinsurance agreement if the company assuming the policies under the agreement is authorized to transact the kinds of insurance provided by those policies.(b)  Before a stipulated premium company may enter into a total direct reinsurance agreement:(1)  the company must submit the agreement to the department;  and(2)  the department must approve the agreement as fully protecting the interests of all the holders of policies being assumed.(c)  A partial direct reinsurance agreement shall be filed with the department before the effective date of the agreement.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.502 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter K. Direct Reinsurance Agreements|Section 884.502. Direct Reinsurance Agreement With Legal Reserve Company

Sec. 884.502.  DIRECT REINSURANCE AGREEMENT WITH LEGAL RESERVE COMPANY.  (a)  A stipulated premium company may enter into a total or partial direct reinsurance agreement with a legal reserve life insurance company authorized to engage in the business of insurance in this state.(b)  Before a reinsurance agreement under this section may take effect, it must be:(1)  approved by a majority vote of the board of directors of each company;(2)  submitted to the department;  and(3)  approved by the department as complying with Section 884.503 or 884.504, as applicable.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.503 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter K. Direct Reinsurance Agreements|Section 884.503. Direct Reinsurance of Accident or Health Insurance Policies

Sec. 884.503.  DIRECT REINSURANCE OF ACCIDENT OR HEALTH INSURANCE POLICIES.  (a)  In the direct reinsurance of a stipulated premium accident or health insurance policy under Section 884.502, the company assuming the policy under the agreement must assume the exact obligations of the policy.(b)  If a policy is non-cancellable or guaranteed renewable, the assuming company may include in the assumption certificate a premium redetermination clause instead of the clause required by Section 884.352.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.504 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter K. Direct Reinsurance Agreements|Section 884.504. Direct Reinsurance of Certain Policies

Sec. 884.504.  DIRECT REINSURANCE OF CERTAIN POLICIES.  (a)  A reinsurance agreement authorized by Section 884.502 for the direct reinsurance of life insurance policies or a combination of life and accident or health insurance policies must contain provisions that comply with this section.(b)  If the legal reserve life insurance company is the reinsurer and issues an assumption certificate providing whole life coverage for the life benefit, the policyholder is not entitled to receive the policyholder's individual reserve in cash by surrendering the assumption certificate.(c)  If the reserves and premium under the stipulated premium policy are inadequate to provide whole life coverage under the legal reserve assumption certificate and a term coverage assumption is made available, each affected policyholder must be allowed to select:(1)  payment in cash of the amount of the individual reserve, reduced by the deficiency reserve, if any, to the policyholder on surrender of the policy;(2)  an assumption certificate of another stipulated premium company engaging in the business of insurance under this chapter;  or(3)  the legal reserve life insurance company's assumption certificate for term coverage that is renewable for the life of the insured without evidence of insurability and the rate for which is based on the legal reserve table selected by the assuming company at the attained age of the insured on the date of the renewal increased by an appropriate expense factor.(d)  To exercise the option described by Subsection (c)(1) the policyholder must request that option not later than the 60th day after the date that the notice of the options available to the policyholder is mailed.  A policyholder is entitled to exercise the option under Subsection (c)(2) or (3) not later than the 60th day after the date the assumption certificate of the legal reserve life insurance company is mailed to the policyholder.(e)  If the legal reserve life insurance company makes term coverage available, the company shall use each policyholder's individual reserve, less the amount of the deficiency, if any, as:(1)  a reserve credit to permit the legal reserve assumption certificate to be backdated to the earliest date the reserve credit allows;  or(2)  an annuity to reduce the required premium during the initial period of the term coverage.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.505 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter K. Direct Reinsurance Agreements|Section 884.505. Effect of Total Direct Reinsurance Agreement

Sec. 884.505.  EFFECT OF TOTAL DIRECT REINSURANCE AGREEMENT.  (a)  A stipulated premium company that enters into a total direct reinsurance agreement under Section 884.501 or 884.502 under which it is the ceding company shall promptly surrender its certificate of authority to the department.(b)  The stipulated premium company's shareholders and board of directors shall effect the company's dissolution.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.506 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter K. Direct Reinsurance Agreements|Section 884.506. Assumption Certificate

Sec. 884.506.  ASSUMPTION CERTIFICATE.  The company assuming a policy under a partial direct reinsurance agreement shall issue to the holder of the assumed policy an assumption certificate to be attached to the policy.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.551 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter L. Direct Reinsurance Agreements With Mutual Assessment Companies|Section 884.551. Definitions

Sec. 884.551.  DEFINITIONS.  In this subchapter:(1)  "Mutual assessment company" means any entity regulated under Chapter 887 or 888.(2)  "Net assets" means a company's funds that are available for the payment of the company's obligations in this state, including uncollected premiums that are not more than three months past due, after the deduction of all unpaid losses and claims, claims for losses, and all other debts.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.552 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter L. Direct Reinsurance Agreements With Mutual Assessment Companies|Section 884.552. Authority to Contract

Sec. 884.552.  AUTHORITY TO CONTRACT.  A mutual assessment company may enter into a direct reinsurance agreement with a stipulated premium company in accordance with this subchapter.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.553 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter L. Direct Reinsurance Agreements With Mutual Assessment Companies|Section 884.553. Reinsurance Agreement

Sec. 884.553.  REINSURANCE AGREEMENT.  (a)  A reinsurance agreement under this subchapter must provide that the stipulated premium company is to assume the policies of the mutual assessment company.(b)  The reinsurance agreement must provide for the computation, on the effective date of the agreement, of:(1)  the amount of the net assets, including mortuary and expense funds, of the mutual assessment company that is to be transferred to the stipulated premium company after the payment of all liabilities;(2)  the amount of the required reserves to be established under the reserve and interest table used in the agreement;  and(3)  the amount of any deficiency reserve resulting from the computation of Subdivisions (1) and (2).(c)  The deficiency reserve is subject to Section 884.453, except that instead of reducing the deficiency as required by that section, the reinsurance agreement may provide for immediate premium rate adjustments, in accordance with accepted actuarial practices and standards, to eliminate the deficiency at the time of reinsurance or during the period allowed for eliminating the deficiency under Section 884.453.(d)  For purposes of computing the reserves of members of a mutual assessment company, the total net assets of the company shall be apportioned among the members assessed.  The percentage of the total amount of the net assets allotted to a member is computed by dividing the amount of the required reserve for that member insured under the reinsurance agreement by the total amount of the required reserve for all members under the agreement. (e)  The reinsurance agreement must provide that each policyholder who is dissatisfied with the agreement and who does not want to accept the assumption certificate offered by the stipulated premium company is entitled to receive the amount of the reserve under the policyholder's policy reduced by the amount of any deficiency reserve applicable to the policy.  The policyholder must make a written request for that option to the stipulated premium company not later than the 60th day after the date the assumption certificate is mailed.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 884.554 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 884 - Stipulated Premium Insurance Companies|Subchapter L. Direct Reinsurance Agreements With Mutual Assessment Companies|Section 884.554. Approval by Department

Sec. 884.554.  APPROVAL BY DEPARTMENT.  (a)  A mutual assessment company's board of directors may determine by a majority vote to submit a proposed direct reinsurance agreement to the members of the company.  Before the agreement may be submitted to the members, the board must prepare detailed plans for the reinsurance and must submit the agreement to the department.(b)  If the department determines that the proposed direct reinsurance agreement complies with this chapter, the department shall approve the agreement for submission to the members of the company.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|