reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter L. Mergers and Consolidations › Section 882.564. Effect of Merger or Consolidation on Certain Investments

Sec. 882.564.  EFFECT OF MERGER OR CONSOLIDATION ON CERTAIN INVESTMENTS.  (a)  This section applies to each investment of an affected life insurance company, including an investment in real property, that:
(1)  was authorized as a proper asset, as of the date on which the investment was made and under the laws of the state in which the company was organized, for investment of funds of a life insurance company;  and
(2)  is taken over by the new or surviving company under the terms of the merger or consolidation.
(b)  On the effective date of a merger or consolidation of two or more life insurance companies under this subchapter, an investment of the affected companies described by Subsection (a) is a proper asset under the laws of this state of the new or surviving company if the investment is:
(1)  approved by the commissioner;  and
(2)  taken over on terms satisfactory to the commissioner.
(c)  A new or surviving company that acquires, under the terms of the merger or consolidation, real property that exceeds the amount of real property permitted by the applicable sections of this code relating to owning or holding real property shall sell or dispose of the excess real property:
(1)  within the period specified by those sections;  or
(2)  within a longer period if the company obtains a certificate from the commissioner:
(A)  stating that the interests of the company will materially suffer by the forced sale or other disposition of the real property;  and
(B)  specifying the longer period for the sale or other disposition of the real property.
(d)  This section does not preclude the designation and use of the excess real property as branch offices of the company in accordance with this code.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter L. Mergers and Consolidations › Section 882.565. Effect of Merger or Consolidation on Divisible Surplus

Sec. 882.565.  EFFECT OF MERGER OR CONSOLIDATION ON DIVISIBLE SURPLUS.  (a)  This section applies only to a mutual life insurance company that is a new company or the surviving company resulting from a merger or consolidation under this subchapter.
(b)  If the divisible surplus of each domestic mutual life insurance company that is a party to a merger or consolidation under this subchapter was available for allocation to policyholders as provided by Subchapter H immediately before the effective date of the merger or consolidation, the divisible surplus remains available to the policyholders of the new or surviving mutual life insurance company resulting from the merger or consolidation as provided by Subchapter H.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter L. Mergers and Consolidations › Section 882.566. Effect on Antitrust Laws

Sec. 882.566.  EFFECT ON ANTITRUST LAWS.  This subchapter does not affect in any manner the antitrust laws of this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter M. Conversion of Mutual Life Insurance Company to Stock Legal Reserve Life Insurance Company › Section 882.601. Authority to Convert to Stock Legal Reserve Life Insurance Company; Policyholder Authorization Required

Sec. 882.601.  AUTHORITY TO CONVERT TO STOCK LEGAL RESERVE LIFE INSURANCE COMPANY;  POLICYHOLDER AUTHORIZATION REQUIRED.  A mutual life insurance company organized under this chapter may convert to a stock legal reserve life insurance company as provided by this subchapter only if the conversion is approved by the policyholders by a vote of at least two-thirds of the votes cast by the policyholders in person or by proxy at a meeting called for that purpose.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter M. Conversion of Mutual Life Insurance Company to Stock Legal Reserve Life Insurance Company › Section 882.602. Amendment to Charter or Articles of Incorporation Required

Sec. 882.602.  AMENDMENT TO CHARTER OR ARTICLES OF INCORPORATION REQUIRED.  If the policyholders of a mutual life insurance company authorize a conversion under Section 882.601, the board of directors and officers of the company shall amend the company's charter or articles of incorporation to comply with the requirements applicable to a stock legal reserve life insurance company under Chapter 841.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter M. Conversion of Mutual Life Insurance Company to Stock Legal Reserve Life Insurance Company › Section 882.603. Capital and Surplus Requirements

Sec. 882.603.  CAPITAL AND SURPLUS REQUIREMENTS.  (a)  The capital and surplus of the converted stock legal reserve life insurance company must be at least equal to the minimum capital and surplus required for the organization of a stock legal reserve life insurance company under Chapter 841.
(b)  If a contribution of United States currency is necessary to meet the capital and surplus requirements of this section, the contribution must be made before the effective date of the conversion.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter M. Conversion of Mutual Life Insurance Company to Stock Legal Reserve Life Insurance Company › Section 882.604. Hearing

Sec. 882.604.  HEARING.  (a)  After public notice, the commissioner shall hold a hearing on a conversion authorized under Section 882.601.
(b)  Any policyholder of the mutual life insurance company that is the subject of the conversion is entitled to appear and be heard at the hearing.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter M. Conversion of Mutual Life Insurance Company to Stock Legal Reserve Life Insurance Company › Section 882.605. Conversion on Commissioner Approval

Sec. 882.605.  CONVERSION ON COMMISSIONER APPROVAL.  A mutual life insurance company is converted to a stock legal reserve life insurance company if:
(1)  the company complies with this subchapter;  and
(2)  after hearing, the conversion is approved by the commissioner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter M. Conversion of Mutual Life Insurance Company to Stock Legal Reserve Life Insurance Company › Section 882.606. Applicable Law After Conversion

Sec. 882.606.  APPLICABLE LAW AFTER CONVERSION.  After a mutual life insurance company is converted to a stock legal reserve life insurance company, the converted company is governed in the same manner as a company organized under Chapter 841.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter M. Conversion of Mutual Life Insurance Company to Stock Legal Reserve Life Insurance Company › Section 882.607. Other Types of Conversion Not Prohibited

Sec. 882.607.  OTHER TYPES OF CONVERSION NOT PROHIBITED.  This subchapter does not prohibit a mutual life insurance company from converting to a stock legal reserve life insurance company by:
(1)  merger or consolidation;
(2)  a total direct or assumption reinsurance agreement;  or
(3)  any other plan or procedure approved by the company's policyholders and the commissioner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter N. Conversion of Certain Mutual Assessment Companies or Associations to Mutual Life Insurance Companies › Section 882.651. Authority to Convert

Sec. 882.651.  AUTHORITY TO CONVERT.  A mutual assessment company or association organized and operating under the laws of this state on May 17, 1943, may convert to a mutual life insurance company as provided by this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter N. Conversion of Certain Mutual Assessment Companies or Associations to Mutual Life Insurance Companies › Section 882.652. Voluntary Conversion

Sec. 882.652.  VOLUNTARY CONVERSION.  The department may not require a mutual assessment company or association to convert to a mutual life insurance company under this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter N. Conversion of Certain Mutual Assessment Companies or Associations to Mutual Life Insurance Companies › Section 882.653. Conversion Requirements

Sec. 882.653.  CONVERSION REQUIREMENTS.  Except as provided by Section 882. 654, a mutual assessment company or association may convert to a mutual life insurance company only if the company or association:
(1)  possesses an unencumbered surplus of at least $1.4 million;  and
(2)  complies with the requirements of this chapter, including the requirements that the company or association execute articles of incorporation and obtain a charter and a certificate of authority.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter N. Conversion of Certain Mutual Assessment Companies or Associations to Mutual Life Insurance Companies › Section 882.654. Exemption From Surplus Requirements

Sec. 882.654.  EXEMPTION FROM SURPLUS REQUIREMENTS.  (a)  A mutual assessment company or association is exempt from the surplus requirements of Section 882.653 if the company or association:
(1)  possesses an unencumbered surplus of at least $200,000;  and
(2)  converted to a mutual life insurance company before September 1, 1999.
(b)  A mutual assessment company or association that is exempt under Subsection (a) and that was converted on or after September 1, 1989, shall immediately increase its surplus to an amount that satisfies Section 882.653 on:
(1)  a change of control of at least 50 percent of the voting securities of the converted company or association;  or
(2)  if the converted company or association or the holding company that controls the converted company or association, if any, is not controlled by voting securities, a change of at least 50 percent of the ownership of the converted company or association or its holding company.
(c)  For purposes of Subsection (b), a transfer of ownership because of death, regardless of whether the decedent died testate or intestate, is not considered a change of control of a converted mutual assessment company or association or its holding company, if ownership is transferred only to one or more individuals, each of whom would have been an heir of the decedent if the decedent had died intestate.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter N. Conversion of Certain Mutual Assessment Companies or Associations to Mutual Life Insurance Companies › Section 882.655. Applicable Law After Conversion

Sec. 882.655.  APPLICABLE LAW AFTER CONVERSION.  After a mutual assessment company or association is converted to a mutual life insurance company, the converted company is governed by this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter O. Enforcement Provisions › Section 882.701. Applicability of Subchapter

Sec. 882.701.  APPLICABILITY OF SUBCHAPTER.  This subchapter does not apply to a mutual life insurance company organized under this chapter that has a surplus of at least the minimum amount of capital and surplus required of a capital stock company under Sections 841.054, 841.204, 841.205, 841.301, and 841.302.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter O. Enforcement Provisions › Section 882.702. Investment and Deposit of Funds; Criminal Penalty

Sec. 882.702.  INVESTMENT AND DEPOSIT OF FUNDS;  CRIMINAL PENALTY.  (a)  A person commits an offense if the person is an officer or director of a mutual life insurance company and the person knowingly or wilfully violates or assents to the violation of Section 882.252.
(b)  An offense under this section is punishable by imprisonment in the Texas Department of Criminal Justice for a term of not more than five years or less than one year.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 25.121, eff. September 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter O. Enforcement Provisions › Section 882.703. Policy Form; Revocation of Certificate

Sec. 882.703.  POLICY FORM;  REVOCATION OF CERTIFICATE.  The department shall revoke the certificate of authority of a mutual life insurance company that issues a policy on a form that has not been approved by the department as required by Section 882.453.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter P. Conversion of Mutual Life Insurance Company to Insurance Holding Company and Stock Life Insurance Company › Section 882.751. Authority to Convert

Sec. 882.751.  AUTHORITY TO CONVERT.  A mutual life insurance company organized or operating under this chapter may convert by forming an insurance holding company based on a mutual plan and continuing the corporate existence of the converting mutual life insurance company as a stock life insurance company if the commissioner:
(1)  determines that the conversion is fair and equitable to the policyholders of the converting company; and
(2)  approves the proposed plan of conversion.
Added by Acts 2005, 79th Leg., Ch. 82 (S.B. 449), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter P. Conversion of Mutual Life Insurance Company to Insurance Holding Company and Stock Life Insurance Company › Section 882.752. Application of Other Law

Sec. 882.752.  APPLICATION OF OTHER LAW.  Except to the extent of a conflict with this subchapter, Chapter 826 applies to conversion of a mutual life insurance company under this subchapter.
Added by Acts 2005, 79th Leg., Ch. 82 (S.B. 449), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter P. Conversion of Mutual Life Insurance Company to Insurance Holding Company and Stock Life Insurance Company › Section 882.753. Jurisdiction of Commissioner

Sec. 882.753.  JURISDICTION OF COMMISSIONER.  The commissioner retains jurisdiction over a company that converts under this subchapter.
Added by Acts 2005, 79th Leg., Ch. 82 (S.B. 449), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter P. Conversion of Mutual Life Insurance Company to Insurance Holding Company and Stock Life Insurance Company › Section 882.754. Incorporation Requirements

Sec. 882.754.  INCORPORATION REQUIREMENTS.  A mutual insurance holding company that results from a conversion under this subchapter must be incorporated under and subject to this chapter and Chapter 22, Business Organizations Code.
Added by Acts 2005, 79th Leg., Ch. 82 (S.B. 449), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter P. Conversion of Mutual Life Insurance Company to Insurance Holding Company and Stock Life Insurance Company › Section 882.755. Articles of Incorporation

Sec. 882.755.  ARTICLES OF INCORPORATION.  The articles of incorporation of a mutual insurance holding company that results from a conversion under this subchapter, and any amendments to the articles of incorporation, are subject to approval by the commissioner.
Added by Acts 2005, 79th Leg., Ch. 82 (S.B. 449), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 882 - Mutual Life Insurance Companies › Subchapter P. Conversion of Mutual Life Insurance Company to Insurance Holding Company and Stock Life Insurance Company › Section 882.756. Sale of Securities

Sec. 882.756.  SALE OF SECURITIES.  (a)  A sale, issuance, or offering of securities under this subchapter is exempt from the registration and licensing provisions of The Securities Act (Title 12, Government Code).
(b)  An officer, director, or employee of a mutual life insurance company or a mutual insurance holding company or stock life insurance company resulting from a conversion under this subchapter who participates in the conversion is exempt from the registration and licensing provisions of The Securities Act (Title 12, Government Code).  A person may not receive compensation, other than that person's usual salary or compensation, for services performed under the exemption provided by this subsection.
Added by Acts 2005, 79th Leg., Ch. 82 (S.B. 449), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.33, eff. January 1, 2022.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter A. General Provisions › Section 883.001. Definitions

Sec. 883.001.  DEFINITIONS.  In this chapter:
(1)  "Domestic mutual insurance company" means a mutual insurance company organized under this chapter.
(2)  "Foreign mutual insurance company" means a mutual insurance company organized under the laws of a jurisdiction other than this state and authorized to engage in the business of insurance on a mutual plan in any state, district, or territory.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter A. General Provisions › Section 883.002. Applicability of Certain General Laws

Sec. 883.002.  APPLICABILITY OF CERTAIN GENERAL LAWS.  (a)  Except as otherwise provided by law, domestic and foreign mutual insurance companies organized or operating under this chapter are subject to the laws applicable to:
(1)  a stock insurance company engaging in the same kind of insurance;
(2)  investments;
(3)  valued policies;
(4)  policy forms and rates;
(5)  reciprocal or retaliatory laws;
(6)  insolvency and liquidation;  and
(7)  publication and defamatory statements.
(b)  This chapter does not exempt a domestic mutual insurance company from being subject to other laws of this state governing the incorporation, organization, regulation, and operation of a company or organization writing insurance in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter A. General Provisions › Section 883.003. Applicability of Texas Non-Profit Corporation Act

Sec. 883.003.  APPLICABILITY OF TEXAS NON-PROFIT CORPORATION ACT.  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 domestic mutual insurance 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 mutual insurance companies.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter B. Formation, Structure, and Management of Company › Section 883.051. Formation of Company

Sec. 883.051.  FORMATION OF COMPANY.  (a)  Twenty or more persons, a majority of whom are residents of this state, may incorporate in accordance with this chapter to engage in the business of mutual insurance as provided by this chapter.
(b)  To form a mutual insurance company, each incorporator must sign and acknowledge the articles of incorporation of the company.
(c)  The incorporators of a proposed mutual insurance company are subject to Sections 822.001, 822.051, 822.057(a)(1)-(3), (b), and (c), 822.058(a), 822.059, 822.060, and 822.201, except that:
(1)  the minimum number of persons required to adopt and sign the proposed company's articles of incorporation under Section 822.051 is equal to the number of the proposed company's incorporators as provided by Subsection (a);  and
(2)  the unencumbered surplus of the mutual insurance company is capital structure for purposes of Section 822.201.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter B. Formation, Structure, and Management of Company › Section 883.052. Articles of Incorporation

Sec. 883.052.  ARTICLES OF INCORPORATION.  Articles of incorporation of a proposed mutual insurance company must specify:
(1)  the name of the company;
(2)  the purpose for which the company is being formed;
(3)  the location of the company's principal or home office;
(4)  the name and place of residence of each incorporator;  and
(5)  the name and address of each member of the initial board of directors.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter B. Formation, Structure, and Management of Company › Section 883.053. Company's Name

Sec. 883.053.  COMPANY'S NAME.  (a)  The name of a mutual insurance company must contain the word "mutual."
(b)  A mutual insurance company's name may not be so similar to the name of any other mutual insurance company organized or engaging in business in the United States, that it is confusing or misleading.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter B. Formation, Structure, and Management of Company › Section 883.054. Location of Principal or Home Office

Sec. 883.054.  LOCATION OF PRINCIPAL OR HOME OFFICE.  The principal or home office of a mutual insurance company must be located in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter B. Formation, Structure, and Management of Company › Section 883.055. Beginning of Corporate Existence

Sec. 883.055.  BEGINNING OF CORPORATE EXISTENCE.  The corporate existence of a mutual insurance company begins on the date on which the commissioner issues a certificate of authority to the company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter B. Formation, Structure, and Management of Company › Section 883.056. Board of Directors

Sec. 883.056.  BOARD OF DIRECTORS.  (a)  The board of directors named in a mutual insurance company's articles of incorporation shall manage the company until the initial meeting of the members of the company.
(b)  After a mutual insurance company is issued a certificate of authority, the company's board of directors may:
(1)  adopt bylaws;
(2)  accept applications for insurance;  and
(3)  transact the business of the company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter B. Formation, Structure, and Management of Company › Section 883.057. Membership of Public or Private Entities in Company Authorized

Sec. 883.057.  MEMBERSHIP OF PUBLIC OR PRIVATE ENTITIES IN COMPANY AUTHORIZED.  (a)  Any public or private corporation, board, association, or estate may make an application for, enter into an agreement for, or hold a policy in a mutual insurance company.  An officer, shareholder, trustee, or legal representative may act on behalf of the entity for that participation.
(b)  An officer, shareholder, trustee, or legal representative of a public or private entity described by Subsection (a) may not be held personally liable on a contract of insurance executed by the person in the person's capacity as a representative of the entity under Subsection (a).
(c)  The right of a corporation organized under the laws of this state to participate as a member of a mutual insurance company is:
(1)  incidental to the purpose for which the corporation was organized;  and
(2)  in addition to the corporate rights or powers expressly conferred in the corporation's articles of incorporation.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter B. Formation, Structure, and Management of Company › Section 883.058. Membership Votes

Sec. 883.058.  MEMBERSHIP VOTES.  Each member of a mutual insurance company is entitled to one vote on each matter submitted to a vote unless a different number of votes is authorized by the company's bylaws based on:
(1)  the insurance in force;
(2)  the number of policies held by the member;  or
(3)  the amount of the premium paid by the member.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter C. Authority to Engage in Business in This State › Section 883.101. Mutual Insurance Business

Sec. 883.101.  MUTUAL INSURANCE BUSINESS.  Mutual insurance of any kind may not be written in this state except as authorized by this chapter or any other law.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter C. Authority to Engage in Business in This State › Section 883.102. Charter and Certificate of Authority Required

Sec. 883.102.  CHARTER AND CERTIFICATE OF AUTHORITY REQUIRED.  A domestic mutual insurance company may not engage in the business of insurance until:
(1)  the company obtains a charter as provided by Chapter 822;  and
(2)  the commissioner issues to the company a certificate of authority for that purpose.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter C. Authority to Engage in Business in This State › Section 883.103. Authorization of Foreign Mutual Insurance Company to Engage in Business

Sec. 883.103.  AUTHORIZATION OF FOREIGN MUTUAL INSURANCE COMPANY TO ENGAGE IN BUSINESS.  (a)  The department shall authorize a foreign mutual insurance company to write the kinds of insurance authorized by the company's charter or articles of incorporation in this state if the company:
(1)  is solvent as determined under this chapter;
(2)  files with the department:
(A)  a copy of the company's bylaws certified by the company's secretary;  and
(B)  a certified copy of the company's charter or articles of incorporation;
(3)  appoints the commissioner as the company's agent for service of process as provided by Chapter 804;
(4)  files a financial statement under oath in a form as required by the department;  and
(5)  complies with legal requirements applicable to the filing of documents and the furnishing of information by a stock insurance company that files an application with the department for authority to transact the same kind of insurance as the company.
(b)  A foreign mutual insurance company's name may not be so similar to a name of a mutual insurance company or foreign mutual insurance company organized or authorized to engage in business in this state that it is confusing or misleading.
(c)  A foreign mutual insurance company authorized to engage in the business of insurance under this section has, to the same extent, all of the powers granted to and privileges of a mutual insurance company organized and operating under this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.151. Authority to Write Certain Insurance

Sec. 883.151.  AUTHORITY TO WRITE CERTAIN INSURANCE.  A domestic mutual insurance company may write any kind of insurance that may be lawfully written in this state, other than life insurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.152. Prior Authority Not Affected

Sec. 883.152.  PRIOR AUTHORITY NOT AFFECTED.  This chapter does not affect any authority that existed before September 6, 1955, that allowed mutual insurance companies to write non-assessable policies in this state, subject to any prerequisite imposed by law on that authority.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.153. Policy Rates

Sec. 883.153.  POLICY RATES.  A mutual insurance company operating under this chapter shall charge the insurance rates prescribed by the commissioner and is subject to the same rate requirements as a domestic insurance company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.154. Maximum Premiums

Sec. 883.154.  MAXIMUM PREMIUMS.  (a)  The maximum premium of an insurance policy issued by a domestic mutual insurance company must be stated in the policy.
(b)  A policy's maximum premium may consist only of:
(1)  a cash premium;  or
(2)  a cash premium and a contingent premium in an amount equal to one additional cash premium.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.155. Issuance of Policy for Cash Premium Only

Sec. 883.155.  ISSUANCE OF POLICY FOR CASH PREMIUM ONLY.  (a)  A domestic mutual insurance company may not issue an insurance policy for a cash premium only unless:
(1)  the company possesses surplus above all liabilities in an amount at least equal to the minimum capital and surplus required of a stock insurance company engaging in the same kinds of insurance;
(2)  the company files with the department:
(A)  an application for the issuance of this type of policy;  and
(B)  a certified copy of the resolution of the company's board of directors authorizing the issuance;  and
(3)  the commissioner approves the documents filed under Subdivision (2).
(b)  A mutual insurance company that issues a policy for a cash premium only may waive all contingent premiums in any outstanding policies.
(c)  A foreign mutual insurance company authorized to engage in the business of insurance in this state may issue an insurance policy for a cash premium only and may waive contingent premiums on any of its outstanding policies in the same manner and subject to the same requirements as a mutual insurance company under this section that is engaged in the same kinds of insurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.156. Assessment on Policyholders

Sec. 883.156.  ASSESSMENT ON POLICYHOLDERS.  (a)  A policyholder is not liable for an assessment imposed on a policy issued by a mutual insurance company with approval of the commissioner under Section 883.155(a).
(b)  An assessment may not be imposed on the holder of a policy described by Section 883.155(a) by:
(1)  the officers or directors of a mutual insurance company;
(2)  the department;
(3)  a receiver;  or
(4)  a liquidator.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.157. Reinsurance of Policy

Sec. 883.157.  REINSURANCE OF POLICY.  (a)  Subject to Subsection (c), a mutual insurance company authorized to engage in the business of insurance in this state may enter into an agreement with an insurer to cede to or accept from the insurer all or part of an insurance risk.
(b)  A reinsurance agreement under this section does not create or confer contingent liability, participation, or membership unless otherwise provided by the agreement.
(c)  A mutual insurance company may not enter into an agreement with a reinsurer that has been disapproved for that purpose by written order of the commissioner filed in the department's offices.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.158. Requirements for Companies Writing Bonds

Sec. 883.158.  REQUIREMENTS FOR COMPANIES WRITING BONDS.  A mutual insurance company qualifying to write bonds under this chapter is subject to the same legal requirements as any other insurance company writing bonds under this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.159. Necessary or Incidental Powers

Sec. 883.159.  NECESSARY OR INCIDENTAL POWERS.  A domestic mutual insurance company has such powers as are necessary or incidental to the transaction of its business.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Sec. 883.160.  RIGHTS AND PRIVILEGES OF CERTAIN COMPANIES RETAINED.  A mutual insurance company engaged in business under Chapters 5, 9, 12, 13, 14, and 15, Title 78, Revised Statutes, before their repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st Called Session, 1929, as amended by Section 1, Chapter 60, Acts of the 41st Legislature, 2nd Called Session, 1929, retains the rights and privileges under the repealed law to the extent provided by those sections.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.161. Dividends

Sec. 883.161.  DIVIDENDS.  On advance approval of the commissioner, a mutual insurance company may pay dividends to its members.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.162. Loans to Company

Sec. 883.162.  LOANS TO COMPANY.  (a)  A person, including a director, officer, or member of a mutual insurance company, may loan to the company money necessary:
(1)  for the company to engage in the company's business;  or
(2)  to enable the company to comply with a legal requirement.
(b)  The mutual insurance company may repay a loan and agreed interest, at an annual rate not to exceed 20 percent, only from the surplus remaining after the company provides for the company's reserves, other liabilities, and required surplus.
(c)  A loan under this section or interest on a loan is not otherwise a liability or claim against the company or any of its assets.
(d)  A mutual insurance company may not pay a commission or promotion expense in connection with a loan made to the company.
(e)  A mutual insurance company shall report in its annual statement the amount of each loan made to the company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter D. Powers, Duties, and Operation of Company › Section 883.163. Immediate Notification When Assets Are Insufficient; Examination

Sec. 883.163.  IMMEDIATE NOTIFICATION WHEN ASSETS ARE INSUFFICIENT;  EXAMINATION.  The president and the secretary of a mutual insurance company operating under the law providing for the incorporation of mutual fire, lightning, hail, and storm insurance companies shall immediately notify the commissioner any time the admitted assets of the company are less than the largest single risk for which the company is liable.  The commissioner may make an examination into the affairs of the company as the commissioner considers best.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter E. Regulation of Company › Section 883.201. Surplus Requirements

Sec. 883.201.  SURPLUS REQUIREMENTS.  A domestic mutual insurance company must possess a surplus over and above all liabilities in an amount equal to the minimum capital stock and surplus required of a stock insurance company engaged in the same kinds of insurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter E. Regulation of Company › Section 883.202. Required Deposit for Companies Writing Bonds

Sec. 883.202.  REQUIRED DEPOSIT FOR COMPANIES WRITING BONDS.  (a)  A domestic mutual insurance company that writes fidelity and surety bond coverage shall maintain on deposit with the comptroller cash or securities of the kind described by a provision of Subchapter B, Chapter 424, other than Section 424.052, 424.072, or 424.073, in an amount equal to the amount of cash or securities required of a domestic stock insurance company.
(b)  The commissioner must approve for deposit the cash or securities required by this section.
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.075, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter E. Regulation of Company › Section 883.203. Reserves

Sec. 883.203.  RESERVES.  (a)  A domestic mutual insurance company shall maintain unearned premiums and other reserves separately for each kind of insurance.  The reserves must be maintained on the same basis as those reserves are required to be maintained by a domestic stock insurance company engaging in the same kinds of insurance.
(b)  A mutual insurance company operating under this chapter is subject to the same reserve requirements as a domestic insurance company under law.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle E - Mutual and Fraternal Companies and Related Entities › Chapter 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter E. Regulation of Company › Section 883.204. Annual Report

Sec. 883.204.  ANNUAL REPORT.  (a)  Domestic and foreign mutual insurance companies organized or operating under this chapter shall submit to the commissioner an annual report in the form required by the commissioner.
(b)  To the extent practicable, the commissioner shall adopt a form that is similar to a form that is generally used for submission of the annual report throughout the United States.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.