reglab/housing_qa huggingface dataset:
TX Ins Code § 887.001 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter A. General Provisions|Section 887.001. Definitions

Sec. 887.001.  DEFINITIONS.  In this chapter:(1)  "Assessment" means any money or thing of value, including premiums, paid in consideration of insurance provided by an insurance certificate.(2)  "Association" means an organization subject to this chapter.(3)  "Insurance certificate" means an insurance policy, contract of insurance, certificate of membership, or other document through which insurance is effected or evidenced.(4)  "Member" includes a certificate holder or any other insured of an association.(5)  "Membership fee" means the amount of the first assessment or assessments placed in the expense fund of an association and representing the cost of soliciting or procuring a member, as permitted by the department.(6)  "Mortuary fund" includes a mortuary fund, relief fund, claim fund, or similar fund.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.002 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter A. General Provisions|Section 887.002. Purpose

Sec. 887.002.  PURPOSE.  The primary purpose of this chapter and Chapter 888 is to secure to members and the beneficiaries of members the full and prompt payment of all claims, according to the maximum benefit provided under the insurance certificate.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.003 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter A. General Provisions|Section 887.003. Applicability of Chapter

Sec. 887.003.  APPLICABILITY OF CHAPTER.  (a)  This chapter governs:(1)  local mutual aid associations;(2)  statewide mutual life associations;(3)  life, health, and accident associations;(4)  mutual assessment life, health, and accident associations;(5)  burial associations;  and(6)  similar entities.(b)  Except as provided by Section 887.004, this chapter applies to insurance companies and associations, whether incorporated or not:(1)  that issue policies or certificates of insurance on the lives of individuals on a mutual assessment plan or that provide health and accident benefits on a mutual assessment plan or whose funds are derived from assessments on certificate holders or members;  and(2)  that are not governed by:(A)  Chapter 841, 861, 882, 883, 885, 941, or 942;  or(B)  Chapter 5, Title 78, Revised Statutes, as provided by Section 18, Chapter 40, Acts of the 41st Legislature, 1st Called Session, 1929, as amended by Section 1, Chapter 60, General Laws, Acts of the 41st Legislature, 2nd Called Session, 1929.(c)  This chapter does not apply to mutual fire insurance companies.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.004 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter A. General Provisions|Section 887.004. Inapplicability to Certain Organizations of Members of Religious Denomination

Sec. 887.004.  INAPPLICABILITY TO CERTAIN ORGANIZATIONS OF MEMBERS OF RELIGIOUS DENOMINATION.  This chapter does not apply to an association that:(1)  is not operated for profit;(2)  is composed only of the members of a particular religious denomination;(3)  does not provide insurance benefits in an amount greater than $1,000 on any one individual;  and(4)  does not pay any officer of the association a salary greater than $100 a month.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.005 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter A. General Provisions|Section 887.005. Department of Public Safety Employee Mutual Association

Sec. 887.005.  DEPARTMENT OF PUBLIC SAFETY EMPLOYEE MUTUAL ASSOCIATION.  Notwithstanding any other provision of this chapter, a mutual association for employees of the Department of Public Safety may provide coverage and benefits to retired officers and employees of that department.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.006 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter A. General Provisions|Section 887.006. Construction

Sec. 887.006.  CONSTRUCTION.  (a)  This chapter does not:(1)  enlarge the powers or rights of any association;(2)  enlarge the scope of an association's legal or corporate existence;  or(3)  authorize the creation of any association or corporation to engage in the business of insurance described by Section 887.003(b) if that creation is not specifically permitted by law.(b)  The laws prohibiting or limiting creation of an association and the exercise of corporate power are not affected by this chapter.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.007 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter A. General Provisions|Section 887.007. Deposit of Fees

Sec. 887.007.  DEPOSIT OF FEES.  The department shall deposit a fee collected under this chapter to the credit of the Texas Department of Insurance operating account.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.008 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter A. General Provisions|Section 887.008. Interpretation of Chapter by Commissioner

Sec. 887.008.  INTERPRETATION OF CHAPTER BY COMMISSIONER.  If a provision of this chapter appears obscure when applied to health, accident, or disability provisions in an insurance certificate issued by an association authorized to issue health, accident, or disability certificates, the commissioner shall interpret the provision in accordance with the expressed purpose of this chapter and looking to the full payment of claims and preserving to members the benefit of the association's protection.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.009 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter A. General Provisions|Section 887.009. Rules

Sec. 887.009.  RULES.  The commissioner may adopt reasonable rules to implement the purposes of this chapter.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.051 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.051. Bylaws

Sec. 887.051.  BYLAWS.  (a)  An association shall submit to the department a copy of the association's bylaws.  The department shall examine the bylaws and approve the bylaws if they comply with this chapter.  The association shall conform the bylaws to this chapter if they are not in compliance.(b)  On approval of the bylaws under Subsection (a), an association shall file with the department a copy of the bylaws certified by the president or general manager and the secretary of the association.(c)  An association's bylaws must contain all things required by this chapter and may not contain any provision in conflict with this chapter.(d)  An association's bylaws must provide for periodic and special meetings of the membership.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.052 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.052. Amendment of Bylaws

Sec. 887.052.  AMENDMENT OF BYLAWS.  (a)  A majority of an association's members present at a regular meeting or at a meeting called for the purpose may amend the association's bylaws.(b)  An association shall mail to all members notice of any regular or special meeting at which amendments to bylaws will be considered.  The notice must contain:(1)  a complete copy of the proposed amendments;  and(2)  a fair explanation of the intent and effect of the proposed amendments.(c)  An amendment must be ratified by the association's board of directors. (d)  An association shall file with the department, in the same manner provided for filing bylaws under Section 887.051, an amendment adopted by the association.  An amendment is not effective unless approved by the department.(e)  An association shall mail to each member a certified copy of any amendment to the association's bylaws at the next assessment after the amendment to the bylaws is made.(f)  On adoption of an amendment to an association's bylaws that might affect the insurance rights of the association's members, the association shall immediately send a copy of the amendment by first class mail to each affected member.  The burden of proof is on the association to prove that the association mailed the amendment.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.053 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.053. Immunity

Sec. 887.053.  IMMUNITY.  An officer, director, or member of an association is not individually liable because of an insurance certificate issued by the association or a claim arising from an insurance certificate.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.054 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.054. Financial Officer; Bond

Sec. 887.054.  FINANCIAL OFFICER;  BOND.  (a)  An association, by resolution entered in its minutes, shall designate an officer to be responsible for handling the association's funds.  The president, secretary, or general manager of the association must certify a copy of the resolution, and the association shall file the copy with the department.(b)  Except as provided by Subsection (c) or (d), the association shall make and file a surety bond covering the officer designated under Subsection (a).  The bond must:(1)  be issued by a corporate surety company authorized to issue surety bonds in this state;(2)  be satisfactory to the department and payable to the department for the use and benefit of the association;(3)  obligate the principal and surety to pay any monetary loss sustained by the association through an act of fraud, dishonesty, forgery, theft, embezzlement, or wilful misapplication by the officer, whether acting alone or with other persons, while employed as or exercising the powers of an officer designated under Subsection (a);  and(4)  be in an amount of:(A)  at least $2,500;  or(B)  if the association's mortuary fund exceeds $2,500, an amount equal to the lesser of:(i)  the amount of the association's mortuary fund;  or(ii)  $20,000.(c)  Instead of the bond required by Subsection (b), the officer designated under Subsection (a) may deposit with the department cash or securities approved by the department in the amount and subject to the conditions applicable to the bond.(d)  Except as provided by Subsection (e), this section does not apply to a local mutual aid association that was operating on May 12, 1939, and has never:(1)  had a total membership of more than 1,000 members;(2)  charged more than $1 each for annual dues and assessments;  and(3)  charged more than $2.50 for membership fees.(e)  An association to which Subsection (d) applies must file with the department a bond in the amount of $1,000, conditioned as provided for a bond under Subsection (b).(f)  Successive recoveries may be made on a bond under this section until the amount of the bond is exhausted.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.055 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.055. Bond Requirements for Certain Persons

Sec. 887.055.  BOND REQUIREMENTS FOR CERTAIN PERSONS.  (a)  In addition to the bond required by Section 887.054 and any other bond required by law, an association shall obtain a separate or blanket surety bond covering each other person who may have access to the association's mortuary funds.  The bond must:(1)  be issued by a surety authorized by the department to engage in business in this state;(2)  be payable to the department for the use and benefit of the association;(3)  obligate the principal and surety to pay any monetary loss sustained by the association through an act of fraud, dishonesty, forgery, theft, embezzlement, or wilful misapplication by a covered person, whether acting alone or with other persons;  and(4)  be in an amount determined by the department of at least $1,000 but not more than $5,000.(b)  Successive recoveries may be made on a bond under this section until the amount of the bond is exhausted.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.056 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.056. Recovery on Bond

Sec. 887.056.  RECOVERY ON BOND.  (a)  On receipt of information that an officer of an association has violated the terms of a bond under Section 887. 054 or 887.055, the department shall demand from the officer a written explanation of the charge.(b)  If after an explanation under Subsection (a) the department is not satisfied regarding the existing facts in controversy, the department shall:(1)  notify the officer to appear in Travis County, not earlier than the 11th day or later than the 16th day after service of notice, with any records and other information the department considers proper;  and(2)  conduct an examination into the charge against the officer.(c)  If after an examination under Subsection (b) the department is satisfied that the officer violated the terms of the bond, the department shall:(1)  immediately notify the company executing the bond;(2)  prepare a written statement covering the facts;  and(3)  deliver the statement to the attorney general.(d)  On receipt of a statement under Subsection (c), the attorney general shall investigate the charges.  If the attorney general is satisfied that the officer violated the terms of the bond, the attorney general shall:(1)  enforce the liability against the cash or securities provided as surety by the officer;  or(2)  in the name of the commissioner, file suit in Travis County on the bond for the benefit of the bond's beneficiaries against the officer as principal and the sureties for the recovery of:(A)  any amounts due by the officer;  and(B)  all costs of the suit.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.057 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.057. Deposit

Sec. 887.057.  DEPOSIT.  (a)  An association shall, through the department, deposit with the comptroller an amount equal to the largest risk assumed by the association on any one life or individual.(b)  A deposit under this section must be cash or convertible securities subject to approval by the department.(c)  A deposit is liable for the payment of any final judgment against the association and is subject to garnishment after a final judgment against the association.(d)  An association shall immediately replenish a deposit under this section if the deposit is impounded or depleted.  If the association fails to immediately replenish the deposit on demand by the department, the department may consider the association insolvent and take appropriate action.(e)  An association may not state in an advertisement, in a letter, in literature, or otherwise that it has made a deposit with the department as required by law, unless the association also states fully:(1)  the purpose of the deposit;(2)  the conditions under which the deposit is made;  and(3)  the exact amount and character of the deposit.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.058 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.058. Change of Association's Name

Sec. 887.058.  CHANGE OF ASSOCIATION'S NAME.  An association may change its name by amending the association's charter if:(1)  the association submits the proposed amendment to the department for approval;  and(2)  the department does not determine that the proposed name is confusing and misleading to the public.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.059 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.059. Books and Records

Sec. 887.059.  BOOKS AND RECORDS.  (a)  An association shall keep the association's books and records in a form and manner that:(1)  accurately reflects the condition of the association or the facts essential to the association's faithful and effective operation;  and(2)  is acceptable to the department.(b)  The association shall adopt forms or systems that are acceptable to the department and will most effectively serve the purpose described by Subsection (a)(1).|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.060 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.060. Annual Statement

Sec. 887.060.  ANNUAL STATEMENT.  (a)  Not later than April 1 of each year, an association shall file with the department a sworn statement of the association's condition on the preceding December 31.(b)  A statement under this section must be on a form provided by the department for that purpose and include a complete account of:(1)  the association's real and contingent assets;(2)  the association's liabilities;  and(3)  income to and disbursements from the association's mortuary and expense funds during the year.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.061 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.061. Report on Condition of Association

Sec. 887.061.  REPORT ON CONDITION OF ASSOCIATION.  The department may require from an association written reports on the condition of the association at any time the department considers advisable.  The department may require that a report be verified by the oath of a responsible officer of the association.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.062 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.062. Examination

Sec. 887.062.  EXAMINATION.  The following provisions apply to an association:(1)  Subchapter A, Chapter 86; and(2)  Sections 401.051, 401.052, 401.054-401.062, 401.151, 401.152, 401.155, and 401.156.|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.103, eff. April 1, 2009.|
TX Ins Code § 887.063 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.063. Admitted Assets

Sec. 887.063.  ADMITTED ASSETS.  An association may include among its admitted assets, within the assets of the expense fund only, any asset designated as a net asset under Section 841.004.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|
TX Ins Code § 887.064 (2021)
2021 Texas Statutes|Insurance Code|Title 6 - Organization of Insurers and Related Entities|Subtitle E - Mutual and Fraternal Companies and Related Entities|Chapter 887 - Provisions Applicable to Certain Mutual Assessment Companies|Subchapter B. General Powers and Duties; Officers and Directors|Section 887.064. Dividends

Sec. 887.064.  DIVIDENDS.  If the amount of an association's mortuary fund exceeds the amount of reserves required by Subchapter I, the association may pay dividends from the fund to its certificate holders.  The amount of the dividends and the method of distribution of the dividends must be:(1)  equitable and nondiscriminatory;  and(2)  approved by the department before payment.|Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.|