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 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter E. Regulation of Company › Section 883.205. Examination of Foreign Mutual Insurance Company

Sec. 883.205.  EXAMINATION OF FOREIGN MUTUAL INSURANCE COMPANY.  To the extent practicable, an examination of a foreign mutual insurance company must be conducted in cooperation with the insurance departments of other states in which the foreign company is authorized to transact business.
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 883.206. Fees

Sec. 883.206.  FEES.  Each domestic or foreign mutual insurance company organized or operating under this chapter is subject to a fee imposed by law on a stock insurance company engaging 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 883.207. Premium Tax

Sec. 883.207.  PREMIUM TAX.  Each domestic or foreign mutual insurance company organized or operating under this chapter is subject to taxes imposed by law on that company.  The company shall pay the tax on the gross premiums received for direct insurance written on property or risks located in this state.  The tax payable must be computed on the portion of the gross premiums remaining after deducting:
(1)  premiums charged on policies not taken;
(2)  premiums returned on canceled policies;  and
(3)  any refund or other return made to the policyholders other than for the incurrence of a loss.
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 O. Criminal Penalties › Section 883.701. Violation of Chapter

Sec. 883.701.  VIOLATION OF CHAPTER.  (a)  Except as otherwise provided by this subchapter, a person or corporation commits an offense if the person or corporation violates this chapter.
(b)  An offense under this section is a misdemeanor punishable by a fine of not less than $50 or more than $500.
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 O. Criminal Penalties › Section 883.702. Failure to Report Condition

Sec. 883.702.  FAILURE TO REPORT CONDITION.  (a)  A person commits an offense if the person is a president or secretary described by Section 883.163 and the person fails to make the report required by that section.
(b)  An offense under this section is a misdemeanor punishable by a fine of not less than $100 or more than $500.
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 O. Criminal Penalties › Section 883.703. False Statement or Misappropriation

Sec. 883.703.  FALSE STATEMENT OR MISAPPROPRIATION.  (a)  A person commits an offense if the person intentionally submits a false statement or misappropriates the funds of a mutual insurance company organized under the laws providing for the incorporation of mutual fire, lightning, hail, and storm insurance companies.
(b)  An offense under this section is a felony punishable by confinement in the Texas Department of Criminal Justice for not less than 5 years or more than 10 years.
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. 25.122, 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 883 - Mutual Insurance Companies Other Than Mutual Life Insurance Companies › Subchapter O. Criminal Penalties › Section 883.704. Unauthorized Mutual Fire Insurance

Sec. 883.704.  UNAUTHORIZED MUTUAL FIRE INSURANCE.  (a)  A person commits an offense if the person engages in the business of mutual fire insurance in this state in violation of the laws regulating mutual fire insurance.
(b)  An offense under this section is a misdemeanor punishable by a fine of not less than $50 or more than $500.
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 884 - Stipulated Premium Insurance Companies › Subchapter A. General Provisions › Section 884.001. Definition

Sec. 884.001.  DEFINITION.  In this chapter, "stipulated premium company" means a:
(1)  stipulated premium life insurance company;
(2)  stipulated premium accident insurance company;
(3)  stipulated premium life and accident insurance company;
(4)  stipulated premium accident and health insurance company;  or
(5)  stipulated premium life, accident, and health 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 884 - Stipulated Premium Insurance Companies › Subchapter A. General Provisions › Section 884.002. Applicability of Other Law to Company

Sec. 884.002.  APPLICABILITY OF OTHER LAW TO COMPANY.  (a)  Except as expressly provided by this code, a provision of this code, other than this chapter, does not apply to a stipulated premium company organized under this chapter.
(b)  A law enacted after August 28, 1961, does not apply to a stipulated premium company unless stipulated premium companies are expressly designated in the law.
(c)  The following provisions of this code apply to a stipulated premium company:
(1)  Article 21.47;
(2)  Section 38.001;
(3)  Chapter 86;
(4)  Subchapter A, Chapter 401;
(5)  Sections 401.051, 401.052, 401.054-401.062, 401.151, 401.152, 401.155, and 401.156;
(6)  Sections 403.001, 403.052, and 403.102;
(7)  Subchapter A, Chapter 404;
(8)  Section 421.001;
(9)  Subchapter D, Chapter 425;
(10)  Chapter 443;
(11)  Chapter 493, other than Section 493.051(b);
(12)  Chapter 541;
(13)  Sections 801.001-801.002;
(14)  Sections 801.051-801.055;
(15)  Section 801.057;
(16)  Sections 801.101-801.102;
(17)  Subchapter A, Chapter 821;
(18)  Chapter 824;
(19)  Chapter 828;
(20)  Section 841.251;
(21)  Section 841.259;
(22)  Section 841.261;
(23)  Section 841.703; and
(24)  Chapter 4152.
(d)  The Securities Act (Title 12, Government Code) applies to a stipulated premium company.
(e)  The Texas Business Corporation Act applies to a stipulated premium company to the extent that law is not inconsistent with an insurance law applicable to a stipulated premium company.  The department shall perform a duty imposed by the Texas Business Corporation Act on the office of the secretary of state that is applicable to a stipulated premium 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.076, eff. April 1, 2009.
Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.10, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.34, 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 884 - Stipulated Premium Insurance Companies › Subchapter A. General Provisions › Section 884.003. Admitted Assets

Sec. 884.003.  ADMITTED ASSETS.  A stipulated premium insurer may include among its admitted assets a net asset under Section 841.004.
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 884 - Stipulated Premium Insurance Companies › Subchapter B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.051. Formation of Company

Sec. 884.051.  FORMATION OF COMPANY.  (a)  Five or more, but not more than 35, residents of this state may form a stipulated premium company.
(b)  To form a stipulated premium company:
(1)  each incorporator must sign and acknowledge the articles of incorporation of the company;  and
(2)  the incorporators must file the articles of incorporation with the department.
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 884 - Stipulated Premium Insurance Companies › Subchapter B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.052. Articles of Incorporation

Sec. 884.052.  ARTICLES OF INCORPORATION.  (a)  Articles of incorporation of a stipulated premium company must specify:
(1)  the name and place of residence of each incorporator;
(2)  the name of the proposed stipulated premium company;
(3)  the location of the proposed company's home office;
(4)  the kinds of insurance business the proposed company will transact;
(5)  the amount of the proposed company's capital stock;
(6)  the number of shares of the proposed company's capital stock;  and
(7)  the period of the proposed company's duration, which may not exceed 500 years.
(b)  The incorporators of a stipulated premium company may include other provisions in the 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 884 - Stipulated Premium Insurance Companies › Subchapter B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.053. Company's Name

Sec. 884.053.  COMPANY'S NAME.  (a)  The name of a stipulated premium company must contain the words "Insurance Company."
(b)  A stipulated premium company's name may not be so similar to the name of another insurance company as to likely mislead the public.
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 884 - Stipulated Premium Insurance Companies › Subchapter B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.054. Capital Stock and Surplus Requirements

Sec. 884.054.  CAPITAL STOCK AND SURPLUS REQUIREMENTS.  (a)  A proposed stipulated premium company's capital stock must be in an amount of at least $200,000.
(b)  All of the capital stock required by Subsection (a) must be fully subscribed and paid up and delivered to the incorporators before the articles of incorporation are filed.
(c)  To be incorporated, a stipulated premium company must possess at the time of incorporation, in addition to its capital, surplus in an amount of at least $75,000.  The amount of the surplus is not required to be stated in the company's articles of incorporation.
(d)  At the time of incorporation the minimum capital and surplus shall consist only of:
(1)  United States currency;
(2)  bonds of the United States, this state, or a county or municipality of this state;  or
(3)  government insured mortgage loans that are authorized by this chapter, with not more than 50 percent of the minimum capital invested in first mortgage real property loans.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1309 (H.B. 2570), Sec. 1, 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 884 - Stipulated Premium Insurance Companies › Subchapter B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.055. Shares of Stock

Sec. 884.055.  SHARES OF STOCK.  (a)  The shares of stock of a stipulated premium company must have a par value of not less than $1 or more than $100.
(b)  A stipulated premium company may issue and dispose of authorized shares for money or an instrument authorized for minimum capital under Section 884.054(d).  After the company receives payment for a share of stock, the share is nonassessable.
(c)  If all of the shares of stock authorized by the charter or an amendment to the charter are not subscribed and paid for when the charter is granted or the amendment is filed, respectively, the stipulated premium company shall file with the department a certificate authenticated by a majority of the directors stating the number of shares issued and the consideration received for those shares.  The company shall file the certificate not later than the 90th day after the date of issuance of any of those remaining shares.
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 884 - Stipulated Premium Insurance Companies › Subchapter B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.056. Application for Charter

Sec. 884.056.  APPLICATION FOR CHARTER.  (a)  To obtain a charter for a stipulated premium company under this chapter, the incorporators must pay a charter fee in an amount determined under Chapter 202 and file with the department:
(1)  an application for charter on the form and containing the information prescribed by the department;
(2)  the company's articles of incorporation; and
(3)  an affidavit made by two or more of the incorporators that states that:
(A)  the minimum capital and surplus requirements of Section 884.054 are satisfied;
(B)  the capital and surplus is the bona fide property of the company; and
(C)  the information in the application and articles of incorporation is true and correct.
(b)  The department may require that the incorporators provide at their expense additional evidence of a matter required in the affidavit before the department takes further action on the application for the charter.
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.077, 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 884 - Stipulated Premium Insurance Companies › Subchapter B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.057. Action by Commissioner and Department After Filing

Sec. 884.057.  ACTION BY COMMISSIONER AND DEPARTMENT AFTER FILING.  (a)  After the charter fee is paid and all items required for a charter under Section 884.056 are filed with the department,  the commissioner shall approve or deny the charter application.
(b)  On the applicant's request, the commissioner shall hold a hearing on a denial.  Not later than the 30th day after the date of the applicant's request for a hearing, the commissioner shall request a hearing date.
(c)  An interested party may participate fully and in all respects in any proceeding related to the application.  An intervenor has the rights and privileges of a proper or necessary party in a civil suit in the courts of this state, including the right to be represented by counsel.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1022 (H.B. 4291), Sec. 14, eff. June 19, 2009.
2023 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 B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.058. Examination After Determination

Sec. 884.058.  EXAMINATION AFTER DETERMINATION.  After making a determination on an application under Section 884.057, the commissioner shall immediately make or cause to be made a full and thorough examination of the company.  The company shall pay for the examination.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1022 (H.B. 4291), Sec. 15, eff. June 19, 2009.
2023 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 B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.059. Action on Application

Sec. 884.059.  ACTION ON APPLICATION.  (a)  In considering the application, the commissioner, not later than the 30th day after the date on which a hearing under Section 884.058 is completed, shall determine if:
(1)  the minimum capital and surplus required by Section 884.054 are the bona fide property of the stipulated premium company;
(2)  the proposed officers, directors, and managing executives of the company have sufficient insurance experience, ability, and standing to make success of the proposed company probable;  and
(3)  the applicants are acting in good faith.
(b)  If the commissioner determines by an affirmative finding any of the issues under Subsection (a) adversely to the applicants, the commissioner shall reject the application in writing, giving the reason for the rejection.  An application may not be granted unless it is adequately supported by competent evidence.
(c)  If the commissioner does not reject the application under Subsection (b), the commissioner shall approve the application and on receipt of a fee in the amount determined under Chapter 202 shall provide to the incorporators a certified copy of the application, articles of incorporation, and submitted affidavit.
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.078, 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 884 - Stipulated Premium Insurance Companies › Subchapter B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.060. Beginning of Corporate Existence

Sec. 884.060.  BEGINNING OF CORPORATE EXISTENCE.  On receipt of the certified copy of documents under Section 884.059(c), the stipulated premium company becomes a body politic and corporate and the incorporators may complete organization of the company under Section 884.061.
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 884 - Stipulated Premium Insurance Companies › Subchapter B. Formation and Structure of Stipulated Premium Insurance Company › Section 884.061. Organizational Meeting

Sec. 884.061.  ORGANIZATIONAL MEETING.  (a)  After receipt of the certified copy of documents under Section 884.059(c), the incorporators shall promptly call a meeting of the stipulated premium company's shareholders.  The shareholders shall:
(1)  adopt bylaws to govern the company;  and
(2)  elect the company's initial board of directors.
(b)  The directors elected under this section serve until directors are first elected under Section 884.153.
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 884 - Stipulated Premium Insurance Companies › Subchapter C. Authority to Engage in Business › Section 884.101. Schedule of Assets

Sec. 884.101.  SCHEDULE OF ASSETS.  Two or more officers of the stipulated premium company shall execute and file with the department:
(1)  a sworn schedule of each of the assets of the company exhibited to the department during the examination under Section 884.057 showing the value of the assets;  and
(2)  a sworn statement that the assets are bona fide, are the unconditional and unencumbered property of the company, and are worth the amount stated in the schedule.
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 884 - Stipulated Premium Insurance Companies › Subchapter C. Authority to Engage in Business › Section 884.102. Temporary Certificate of Authority

Sec. 884.102.  TEMPORARY CERTIFICATE OF AUTHORITY.  (a)  If the commissioner makes a determination favorable to the applicants on all issues under Section 884.059(a), the department, on compliance with the requirements of Section 884.101, shall promptly issue to the company a temporary certificate of authority.  The temporary certificate must limit the activities of the company solely to negotiating and obtaining a direct reinsurance agreement, as described by Subchapter L, with a company that on August 28, 1961, was chartered and doing business under former Chapter 14 of this code.
(b)  A temporary certificate of authority expires on the first anniversary of its date of issuance unless the department renews it for an additional one-year period.
(c)  On the expiration of a temporary certificate of authority the incorporators of the stipulated premium company to which the certificate was issued shall promptly surrender the company's charter to the department for cancellation.
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 884 - Stipulated Premium Insurance Companies › Subchapter C. Authority to Engage in Business › Section 884.103. Regular Certificate of Authority

Sec. 884.103.  REGULAR CERTIFICATE OF AUTHORITY.  (a)  If a direct reinsurance agreement described by Section 884.102(a) is entered into while the temporary certificate of authority is valid, the department shall promptly issue to the stipulated premium company a regular certificate of authority to transact the business of insurance in this state in accordance with Subchapter L.
(b)  The regular certificate of authority shall provide for the kind of insurance business that the stipulated premium company may conduct.  If the other party to the agreement conducts the business of life insurance or is a burial association, the stipulated premium company is entitled to write life insurance policies under this chapter.  If the other party is permitted under its charter to write accident insurance, health and accident insurance, or life, health, and accident insurance, the stipulated premium company is entitled to write that kind of insurance.
(c)  If a stipulated premium company that holds a regular certificate of authority enters into a direct reinsurance agreement with another company engaged in business under Chapter 887 or 888, the stipulated premium company's certificate of authority shall be amended to authorize the writing of any kind of insurance authorized for the other 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 884 - Stipulated Premium Insurance Companies › Subchapter D. Management of Stipulated Premium Company › Section 884.151. Conducting Shareholders' Meeting

Sec. 884.151.  CONDUCTING SHAREHOLDERS' MEETING.  (a)  At a meeting of a stipulated premium company's shareholders, each shareholder is entitled to one vote for each fully paid share of stock appearing in the shareholder's name on the company's books.
(b)  A shareholder may vote in person or by written proxy.
(c)  At a shareholders' meeting, a quorum is any number of shareholders whose cumulative stock ownership in the stipulated premium company represents a majority of the company's paid up capital stock.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Sec. 884.152.  BOARD OF DIRECTORS.  (a)  Subject to the bylaws of the stipulated premium company, as adopted or amended by the shareholders or directors, the board of directors has full management and control of the company.
(b)  The board consists of not fewer than five directors.
(c)  The directors shall keep a full and correct record of the board's transactions.  The shareholders may inspect those records during business hours.
(d)  The directors shall fill a vacancy that occurs on the board or in any office of the company.
(e)  A majority of the board is a quorum.
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 884 - Stipulated Premium Insurance Companies › Subchapter D. Management of Stipulated Premium Company › Section 884.153. Election of Directors

Sec. 884.153.  ELECTION OF DIRECTORS.  (a)  On the second Tuesday of April of each year the shareholders of a stipulated premium company shall meet at the company's home office and shall elect the company's board of directors to serve one-year terms beginning immediately after the election.
(b)  If the shareholders do not elect directors at that meeting, the shareholders may elect the directors at a special shareholders' 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 884 - Stipulated Premium Insurance Companies › Subchapter D. Management of Stipulated Premium Company › Section 884.154. Officers

Sec. 884.154.  OFFICERS.  (a)  A stipulated premium company's directors shall choose one of the directors to serve as the company's president.
(b)  Other officers of the stipulated premium company shall be chosen in accordance with the bylaws of the company.  An officer other than the president is not required to be a director or a shareholder unless such a qualification is required by the company's bylaws.
(c)  The duties and compensation of a stipulated premium company's officers are as stated in the company's bylaws.  If the bylaws do not state the duties or compensation of the officers, the directors shall establish the duties or compensation.
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 884 - Stipulated Premium Insurance Companies › Subchapter D. Management of Stipulated Premium Company › Section 884.155. Amendment of Charter or Articles

Sec. 884.155.  AMENDMENT OF CHARTER OR ARTICLES.  (a)  The shareholders of a stipulated premium company by resolution may amend the company's charter or articles of incorporation at any shareholders' meeting.
(b)  The amendment and a copy of the resolution certified by the president and secretary of the stipulated premium company shall be filed and recorded in the same manner as the charter.
(c)  An amendment of the charter or articles takes effect when it is recorded.
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 884 - Stipulated Premium Insurance Companies › Subchapter E. Capital and Surplus › Section 884.201. Form of Capital and Surplus

Sec. 884.201.  FORM OF CAPITAL AND SURPLUS.  After a charter is granted under this chapter, the stipulated premium company:
(1)  shall maintain the company's minimum capital at all times in a form described by Section 884.054(d); and
(2)  may invest the company's surplus as provided by Sections 425.203-425.228.
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.079, 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 884 - Stipulated Premium Insurance Companies › Subchapter E. Capital and Surplus › Section 884.202. Increase or Decrease of Capital Stock

Sec. 884.202.  INCREASE OR DECREASE OF CAPITAL STOCK.  (a)  At any shareholders' meeting, shareholders of a stipulated premium company whose cumulative stock ownership represents a majority of the capital stock of the company by resolution may increase or decrease the amount of the company's capital stock subject to this section.
(b)  Capital stock may be decreased to an amount that is less than $200,000 only to avoid insolvency as provided by Section 884.205.
(c)  Two officers of the stipulated premium company must sign and acknowledge a statement of the increase or decrease.  The acknowledged statement and a certified copy of the resolution shall be filed and recorded in the same manner as the charter.
(d)  For an increase or decrease of capital stock, the stipulated premium company may require the return of the original certificates evidencing the stock in exchange for new certificates.  An issuance of new certificates that results in a transfer of stock is subject to Section 884.254.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1309 (H.B. 2570), Sec. 2, 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 884 - Stipulated Premium Insurance Companies › Subchapter E. Capital and Surplus › Section 884.203. Public Offering of Capital Stock

Sec. 884.203.  PUBLIC OFFERING OF CAPITAL STOCK.  A stipulated premium company may not make to the public an offering that is subject to The Securities Act (Title 12, Government Code), of any of its capital stock before the company possesses:
(1)  capital in an amount of at least $100,000; and
(2)  unencumbered surplus in an amount of at least $100,000.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.35, 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 884 - Stipulated Premium Insurance Companies › Subchapter E. Capital and Surplus › Section 884.204. Company's Repurchase of Stock

Sec. 884.204.  COMPANY'S REPURCHASE OF STOCK.  (a)  Subject to Section 884.202, a stipulated premium company may purchase in the name of the company outstanding shares of the company's capital stock as provided by the Texas Business Corporation Act.
(b)  A purchase of stock under this section is not considered an investment and does not violate the provisions of this code relating to eligible investments for a stipulated premium company.
(c)  A stipulated premium company that purchases stock under this section shall file with the department not later than the 10th day after the date of the purchase a statement that contains the name of each shareholder from whom the shares were purchased and the sum of money paid for those shares.
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 884 - Stipulated Premium Insurance Companies › Subchapter E. Capital and Surplus › Section 884.205. Impairment of Capital Stock

Sec. 884.205.  IMPAIRMENT OF CAPITAL STOCK.  (a)  If, when computing the liabilities of a stipulated premium company under this chapter, one-third or more of the company's capital stock becomes impaired, the company shall correct the impairment not later than the 60th day after the date the company becomes subject to this subsection by:
(1)  reducing the company's capital stock;
(2)  adjusting the premium rate if permitted by policy contract; or
(3)  both reducing capital stock and adjusting the premium rate.
(b)  If, when computing a stipulated premium company's reserve liability under this chapter, 50 percent or more of the company's capital stock becomes impaired, the commissioner may apply to a court for the appointment of a receiver to wind up the affairs of the company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1309 (H.B. 2570), Sec. 3, 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 884 - Stipulated Premium Insurance Companies › Subchapter E. Capital and Surplus › Section 884.206. Commissioner May Require Larger Capital and Surplus Amounts

Sec. 884.206.  COMMISSIONER MAY REQUIRE LARGER CAPITAL AND SURPLUS AMOUNTS.  (a)  The commissioner by rule may require a stipulated premium company that writes or assumes life insurance, annuity contracts, or accident and health insurance for a risk to one person in an amount that exceeds $10,000 to maintain capital and surplus in amounts that exceed the minimum amounts required by this chapter because of:
(1)  the nature and kind of risks the company underwrites or reinsures;
(2)  the premium volume of risks the company underwrites or reinsures;
(3)  the composition, quality, duration, or liquidity of the company's investment portfolio;
(4)  fluctuations in the market value of securities the company holds;  or
(5)  the adequacy of the company's reserves.
(b)  A rule adopted under Subsection (a) must be designed to ensure the financial solvency of a stipulated premium company for the protection of policyholders and may not require that the total admitted assets of a company exceed 106 percent of its total liabilities.
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 884 - Stipulated Premium Insurance Companies › Subchapter E. Capital and Surplus › Section 884.207. New Business Prohibited When Capital Requirements Not Satisfied

Sec. 884.207.  NEW BUSINESS PROHIBITED WHEN CAPITAL REQUIREMENTS NOT SATISFIED.  (a)  A stipulated premium company may not write new business in this state unless the company possesses the minimum capital required under this chapter.
(b)  A stipulated premium company subject to Section 884.205(a) that does not correct the impairment on or before the date provided by that subsection may not write new business in this state after that date until the impairment is corrected.
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 884 - Stipulated Premium Insurance Companies › Subchapter F. General Powers and Duties of Stipulated Premium Company › Section 884.251. Deposit of Company's Funds

Sec. 884.251.  DEPOSIT OF COMPANY'S FUNDS.  (a)  A director, member of a committee, officer, or clerk of a stipulated premium company who has the duty of handling or investing the company's funds shall deposit or invest those funds in the corporate name of the company.
(b)  An individual described by Subsection (a) may not:
(1)  borrow the funds of the stipulated premium company;
(2)  have an interest in any way in a loan, pledge, security, or property of the company, except as shareholder;  or
(3)  take or receive for the individual's use a fee, brokerage, commission, gift, or other consideration for, or on account of, a loan made by or on behalf 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 884 - Stipulated Premium Insurance Companies › Subchapter F. General Powers and Duties of Stipulated Premium Company › Section 884.252. Payments to Officers, Directors, and Employees

Sec. 884.252.  PAYMENTS TO OFFICERS, DIRECTORS, AND EMPLOYEES.  (a)  Unless first authorized by a vote of a stipulated premium company's board of directors or a committee of the board that has the duty of authorizing the payment, the company may not pay:
(1)  any compensation or emolument to an officer or director of the company;  or
(2)  compensation or emolument in an amount that exceeds $50,000 in any year to an individual, firm, or corporation that is not an officer or director of the company.
(b)  This section does not prevent a stipulated premium company from contracting with its agents for the payment of renewal commissions.
(c)  The shareholders of a stipulated premium company may authorize the creation of one or more plans for the payment of pensions, retirement benefits, or group insurance for its officers and employees.  The shareholders may delegate to the company's board of directors the power and duty to prepare, effect, finally approve, administer, and amend a plan.
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 884 - Stipulated Premium Insurance Companies › Subchapter F. General Powers and Duties of Stipulated Premium Company › Section 884.253. Dividends

Sec. 884.253.  DIVIDENDS.  (a)  A stipulated premium company may declare or pay a dividend to its shareholders only from the profits made by the company, not including surplus from the sale of stock.
(b)  A stipulated premium company may not pay a dividend, other than a stock dividend, unless:
(1)  any deficiency reserve under Section 884.453 has been eliminated;  and
(2)  the capital of the company is maintained in an amount of at least $100,000.
(c)  A stipulated premium company that complies with Subsection (b) may pay cash dividends in accordance with Sections 403.001 and 403.052.
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.080, 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 884 - Stipulated Premium Insurance Companies › Subchapter F. General Powers and Duties of Stipulated Premium Company › Section 884.254. Transfer of Stock

Sec. 884.254.  TRANSFER OF STOCK.  (a)  A stipulated premium company's shares of stock are transferable on the company's books, in accordance with law and the bylaws of the company, by the owner or the owner's authorized agent.
(b)  Each person who becomes a shareholder by a transfer of shares succeeds to all rights of the former holder of those shares, by reason of that ownership.
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 884 - Stipulated Premium Insurance Companies › Subchapter F. General Powers and Duties of Stipulated Premium Company › Section 884.255. Use of Certain Terms in Advertising

Sec. 884.255.  USE OF CERTAIN TERMS IN ADVERTISING.  A stipulated premium company may not use in its advertising or representation of a policy the words "legal reserve company," "stock company," "old line legal reserve company," or words of similar meaning that might lead the public to believe that a policy provides nonforfeiture values.
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 884 - Stipulated Premium Insurance Companies › Subchapter F. General Powers and Duties of Stipulated Premium Company › Section 884.256. Annual Statement; Filing Fee

Sec. 884.256.  ANNUAL STATEMENT;  FILING FEE.  (a)  Except as provided by Section 884.406, not later than March 31 of each year a stipulated premium company shall:
(1)  prepare a statement showing the condition of the company on December 31 of the preceding year; and
(2)  deliver the statement to the department accompanied by a filing fee in the amount determined under Chapter 202.
(b)  The statement must be under the oath of two of the stipulated premium company's officers and must show in detail:
(1)  the character of the company's assets and liabilities on December 31 of the preceding year;
(2)  the amount and character of business transacted and money received during the year and how money was spent during the year;
(3)  the number and amount of the company's policies in force on that date;  and
(4)  the total amount of the company's policies in force on that date.
(c)  For purposes of Subsection (b), an insured under a family group policy to which Section 884.451(b) applies is accounted for only if a reserve is required for that insured under that section.
(d)  The department shall prescribe the form of the statement.
(e)  Fees collected under this section shall be deposited to the credit of the Texas Department of Insurance operating account.  Sections 201.001 and 201.002 apply to fees collected under 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.081, 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 884 - Stipulated Premium Insurance Companies › Subchapter G. Powers and Duties Relating to Coverages › Section 884.301. Reinsurance of Policy

Sec. 884.301.  REINSURANCE OF POLICY.  (a)  A stipulated premium company may reinsure on an individual indemnity policy basis any risk or part of a risk that the company underwrites or assumes.
(b)  The reinsurer must be a legal reserve company that:
(1)  is authorized to write life, health, and accident insurance in this state;  and
(2)  has capital and surplus in an amount of at least $200,000.
(c)  After reinsuring under Subsection (a), a stipulated premium company may take a credit for the reinsurance against the aggregate reserves required by Subchapter J.
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 884 - Stipulated Premium Insurance Companies › Subchapter G. Powers and Duties Relating to Coverages › Section 884.302. Limits on Life Insurance

Sec. 884.302.  LIMITS ON LIFE INSURANCE.  (a)  Until the amount of the surplus of a stipulated premium company is at least $50,000, the company may not insure one life for more than $1,000 in the event of death from natural causes or more than $2,000 in the event of death from accidental causes, unless the company reinsures the amount of coverage greater than that applicable amount under Section 884.301.
(b)  Subsection (a) does not apply to a policy of insurance assumed by a stipulated premium company under Subchapter L.
(c)  If the amount of the surplus of a stipulated premium company is at least $50,000 but less than $200,000, the company shall reinsure the insurance amount that exceeds $15,000 on a life insurance risk on one life.
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 884 - Stipulated Premium Insurance Companies › Subchapter G. Powers and Duties Relating to Coverages › Section 884.303. Issuance of Life Insurance Policies by Certain Companies

Sec. 884.303.  ISSUANCE OF LIFE INSURANCE POLICIES BY CERTAIN COMPANIES.  (a)  A stipulated premium company that possesses capital and unencumbered surplus in a combined amount of at least $100,000 may issue life insurance policies as authorized for a company operating under Chapter 841.
(b)  A stipulated premium company may not insure one life under this section for more than $25,000, except as provided by Section 884.304 or Subchapter I.
(c)  A stipulated premium company may issue a policy under this section only on an endowment or limited pay basis.
(d)  A stipulated premium company must reserve and reinsure a policy issued under this section as required for a company operating under Chapter 841.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1309 (H.B. 2570), Sec. 4, 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 884 - Stipulated Premium Insurance Companies › Subchapter G. Powers and Duties Relating to Coverages › Section 884.304. Life Insurance of More Than $25,000

Sec. 884.304.  LIFE INSURANCE OF MORE THAN $25,000.(a)  Except as provided by this section, a stipulated premium company may not assume liability on a life insurance risk on one life in an amount that exceeds $25,000.
(b)  If a stipulated premium company assumes a life insurance risk under a life insurance policy, the initial death benefit of $25,000 or less may increase to an amount greater than $25,000 subject to this section.
(c)  For each policy year of a policy for which, after issuance, the death benefit exceeds $25,000, the amount of the increase of the death benefit at the end of that policy year from the end of the preceding policy year may not exceed the greater of:
(1)  the amount computed using the maximum rate of increase provided by the policy, which rate may not exceed five percent a year, compounded annually; or
(2)  the amount computed using the consumer price index for all urban consumers for all items and for all regions of the United States combined, as determined by the United States Department of Labor, Bureau of Labor Statistics, on September 30 of the year preceding the year in which the policy year ends, compounded annually.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1309 (H.B. 2570), Sec. 5, eff. September 1, 2009.