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 B. Formation and Structure of Mutual Life Insurance Company › Section 882.058. Action on Application

Sec. 882.058.  ACTION ON APPLICATION.  (a)  In considering the application, the commissioner shall determine if:
(1)  the minimum unencumbered surplus required by Section 882.055 is the bona fide property of the mutual life insurance 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 that the applicant has not met the standards set out by Subsection (a), the commissioner shall deny the application in writing, giving the reason for the denial.  An application may not be granted unless it is adequately supported by competent evidence.
(c)  Repealed by Acts 2009, 81st Leg., R.S., Ch. 1022, Sec. 19(6), eff. June 19, 2009.
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. 13, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1022 (H.B. 4291), Sec. 19(6), 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 882 - Mutual Life Insurance Companies › Subchapter B. Formation and Structure of Mutual Life Insurance Company › Section 882.059. Examination After Determination

Sec. 882.059.  EXAMINATION AFTER DETERMINATION.  After making a determination on an application under Section 882.058, the commissioner shall immediately make or cause to be made a full and thorough examination of the mutual life insurance company.  The company shall pay for the examination.
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 C. Authority to Engage in Business › Section 882.101. Issuance of Certificate of Authority

Sec. 882.101.  ISSUANCE OF CERTIFICATE OF AUTHORITY.  (a)  After the examination of a mutual life insurance company under Section 882.059, the commissioner shall issue a certificate of authority to the company if the commissioner finds that:
(1)  the company has complied with all applicable laws;
(2)  the company satisfies the unencumbered surplus requirements of Section 882.055;  and
(3)  the company's unencumbered surplus is in the custody of the company's officers.
(b)  A certificate of authority issued under this section authorizes the company to engage in the business of life, health, or accident insurance in this state as may be specified in the company's charter or charter application.
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 D. Management of Mutual Life Insurance Company › Section 882.151. Board of Directors

Sec. 882.151.  BOARD OF DIRECTORS.  (a)  The board of directors of a mutual life insurance company controls the business of the company.
(b)  The board of directors consists of at least five directors as stated in the company'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 882 - Mutual Life Insurance Companies › Subchapter D. Management of Mutual Life Insurance Company › Section 882.152. Adoption of Initial Bylaws

Sec. 882.152.  ADOPTION OF INITIAL BYLAWS.  (a)  At the first meeting of the initial board of directors of a mutual life insurance company after the department issues a certificate of authority to the company, the board shall adopt the initial bylaws of the company.
(b)  The bylaws adopted under Subsection (a) shall govern the company until the first annual meeting of the 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 882 - Mutual Life Insurance Companies › Subchapter D. Management of Mutual Life Insurance Company › Section 882.153. Annual Meeting

Sec. 882.153.  ANNUAL MEETING.  (a)  Except as provided by Subsection (b), after a mutual life insurance company is issued a certificate of authority under Section 882.101, the company shall hold an annual meeting of the policyholders on the fourth Tuesday in April at the home office of the company or another location properly announced to each policyholder.
(b)  The bylaws of a mutual life insurance company may establish an annual meeting date different than the date under Subsection (a).  A meeting date established under this subsection must be before April 30 of each year.
(c)  At each annual meeting, the policyholders:
(1)  shall elect the company's board of directors to serve until the next annual meeting, except as provided by Section 882.154;  and
(2)  may adopt, amend, or repeal the bylaws 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 882 - Mutual Life Insurance Companies › Subchapter D. Management of Mutual Life Insurance Company › Section 882.154. Staggered Terms for Large Board of Directors

Sec. 882.154.  STAGGERED TERMS FOR LARGE BOARD OF DIRECTORS.  (a)  This section applies only to a mutual life insurance company whose board of directors consists of at least nine members.
(b)  The bylaws of a mutual life insurance company may provide that the company's directors, other than initial directors, may be elected to serve staggered terms as provided by this section.
(c)  The company's directors shall be divided into two or three classes, with each class consisting of an equal number of directors to the extent possible.  After the directors are divided into classes:
(1)  the terms of the directors in the first class expire on the first annual meeting date after their initial election;
(2)  the terms of the directors in the second class expire on the second annual meeting date after their initial election;  and
(3)  the terms of the directors in the third class, if any, expire on the third annual meeting date after their initial election.
(d)  At each annual meeting after the directors are first elected, the policyholders shall elect the number of directors whose terms expire on that date.  Directors are elected for:
(1)  staggered two-year terms, if the board is divided into two classes;  or
(2)  staggered three-year terms, if the board is divided into three classes.
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 D. Management of Mutual Life Insurance Company › Section 882.155. Voting by Policyholders

Sec. 882.155.  VOTING BY POLICYHOLDERS.  (a)  At an annual or special meeting of a mutual life insurance company, each policyholder is entitled to one vote for each $500 of insurance held by the policyholder in the company.
(b)  A policyholder may vote at an annual or special meeting by proxy, unless the proxy is revoked before the meeting.
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 D. Management of Mutual Life Insurance Company › Section 882.156. Officers

Sec. 882.156.  OFFICERS.  (a)  The board of directors of a mutual life insurance company shall elect the following officers for the company:
(1)  a president;
(2)  the number of vice presidents as required by the company's bylaws;
(3)  a secretary;
(4)  a treasurer;
(5)  a medical director;  and
(6)  other officers as required by the company's bylaws.
(b)  The board shall establish the compensation of each officer.
(c)  The duties of each officer shall be prescribed by the company's bylaws.
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 D. Management of Mutual Life Insurance Company › Section 882.157. Officer Bonds

Sec. 882.157.  OFFICER BONDS.  The president, secretary, and treasurer of a mutual life insurance company shall each provide a bond for the protection of the company's policyholders:
(1)  in an amount and with sureties approved by the commissioner;  and
(2)  conditioned on the faithful performance of the officer's duties.
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 D. Management of Mutual Life Insurance Company › Section 882.158. Bylaws Must Comply With Law

Sec. 882.158.  BYLAWS MUST COMPLY WITH LAW.  The bylaws of a mutual life insurance company may not be inconsistent with this chapter or other 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 E. Agents › Section 882.201. Applicability of Subchapter

Sec. 882.201.  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 E. Agents › Section 882.202. Issuance of License to Agent

Sec. 882.202.  ISSUANCE OF LICENSE TO AGENT.  On written request of a mutual life insurance company to which a certificate of authority has been issued under this chapter, the department shall issue a license to each agent 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 882 - Mutual Life Insurance Companies › Subchapter E. Agents › Section 882.203. Limitation on Agent Compensation

Sec. 882.203.  LIMITATION ON AGENT COMPENSATION.  A contract between a mutual life insurance company and an agent of the company to which a license has been issued under Section 882.202 may not provide a commission or other compensation to the agent that exceeds the expense loading in the premiums on policies that are issued on applications obtained by the agent and for which the premiums are collected and paid to the company in cash.
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 F. General Financial Requirements › Section 882.251. Limited Authority to Borrow Money

Sec. 882.251.  LIMITED AUTHORITY TO BORROW MONEY.  (a)  Except as provided by this subchapter, a mutual life insurance company may not borrow money for any purpose other than to pay a death loss.
(b)  A company may not incur a debt on an account for which any part of the company's assets that exceeds the assets represented by or derived from the expense loading in the premiums collected by the company is subject to execution on a judgment.
(c)  Subsection (b) does not prohibit a company from incurring a debt on an account:
(1)  under a policy issued by the company;  or
(2)  to borrow money to pay a death 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 882 - Mutual Life Insurance Companies › Subchapter F. General Financial Requirements › Section 882.252. Investment of Money

Sec. 882.252.  INVESTMENT OF MONEY.  (a)  A mutual life insurance company shall invest the company's money in accordance with the law governing investments of life, health, and accident insurance companies organized under Chapter 841.
(b)  An officer of a mutual life insurance company who does not invest the money of the company as required by Subsection (a) shall deposit the money in the name of the company in a bank that:
(1)  is subject to state or federal regulation;  and
(2)  has been approved by the commissioner as a depository 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 F. General Financial Requirements › Section 882.253. Loans to Company

Sec. 882.253.  LOANS TO COMPANY.  (a)  An officer or director of a mutual life insurance company, or a person authorized under Chapter 825, may loan to the company money to:
(1)  promote or conserve the company's business;  or
(2)  enable the company to comply with a legal requirement.
(b)  The company may repay a loan and agreed interest, at an annual rate not to exceed 10 percent, from the surplus remaining after the company provides for the company's reserves and other liabilities.
(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 life insurance company may not pay a commission or promotion expense in connection with a loan made to the company.
(e)  A mutual life insurance company shall report in its annual statement the amount of each loan.
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 G. Unencumbered Surplus Requirements › Section 882.301. Amount of Unencumbered Surplus

Sec. 882.301.  AMOUNT OF UNENCUMBERED SURPLUS.  (a)  A mutual life insurance company that engages in the business of insurance in this state shall maintain an unencumbered surplus of at least $100,000 that consists of cash or classes of investment as provided by Section 882.055.
(b)  Except as otherwise authorized by this code, a company that does not maintain an unencumbered surplus as required by this section may not write new 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 882 - Mutual Life Insurance Companies › Subchapter G. Unencumbered Surplus Requirements › Section 882.302. Exemption for Certain Companies

Sec. 882.302.  EXEMPTION FOR CERTAIN COMPANIES.  A mutual life insurance company that was authorized and engaged in the business of insurance in this state before May 1, 1955, is not required to increase the amount or convert the class or form of the company's existing unencumbered surplus to comply with Section 882.301 and may not be prohibited from writing new insurance because the company does not maintain an unencumbered surplus as required by that section if the company complies with all other laws.
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 G. Unencumbered Surplus Requirements › Section 882.303. Unencumbered Surplus Less Than $25,000

Sec. 882.303.  UNENCUMBERED SURPLUS LESS THAN $25,000.  A mutual life insurance company whose unencumbered surplus is less than $25,000 shall allocate at least 25 percent of the company's net earned surplus for the preceding calendar year to the company's unencumbered surplus until the company has obtained an unencumbered surplus of at least $25,000.
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 G. Unencumbered Surplus Requirements › Section 882.304. Investment of Excess Unencumbered Surplus

Sec. 882.304.  INVESTMENT OF EXCESS UNENCUMBERED SURPLUS.  A mutual life insurance company that is granted a charter under this chapter may invest that part of the company's unencumbered surplus that exceeds $100,000 as provided by this code for companies operating 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 G. Unencumbered Surplus Requirements › Section 882.305. Impairment of Unencumbered Surplus

Sec. 882.305.  IMPAIRMENT OF UNENCUMBERED SURPLUS.  (a)  If one-third or more of a mutual life insurance company's unencumbered surplus as required by Section 882.301 is impaired, the company shall correct the impairment not later than the 60th day after the date the surplus is impaired.
(b)  A company that does not correct an impairment of surplus as required by Subsection (a) may not write insurance in this state until the company corrects the impairment.
(c)  In determining whether a company's surplus is impaired, the company shall compute its liabilities in the manner provided by state 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 882 - Mutual Life Insurance Companies › Subchapter G. Unencumbered Surplus Requirements › Section 882.306. Impairment of Unencumbered Surplus; Appointment of Receiver

Sec. 882.306.  IMPAIRMENT OF UNENCUMBERED SURPLUS;  APPOINTMENT OF RECEIVER.  (a)  If one-half or more of a mutual life insurance company's unencumbered surplus as required by Section 882.301 is impaired, the commissioner may apply to a court for the appointment of a receiver to wind up the affairs of the company.
(b)  In determining whether a company's surplus is impaired, the company shall compute its reserve liability in the manner provided by state 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 882 - Mutual Life Insurance Companies › Subchapter H. Dividends › Section 882.351. Policyholder's Entitlement to Dividend

Sec. 882.351.  POLICYHOLDER'S ENTITLEMENT TO DIVIDEND.  A policyholder of a mutual life insurance company is entitled to a credit or payment of a dividend from that part of the company's divisible surplus that may be fairly allocated to the policyholder's policy.
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 H. Dividends › Section 882.352. Accounting and Procedure for Allocation of Divisible Surplus; Report to Commissioner

Sec. 882.352.  ACCOUNTING AND PROCEDURE FOR ALLOCATION OF DIVISIBLE SURPLUS;  REPORT TO COMMISSIONER.  (a)  On December 31 of each year, or as soon after as practicable, each mutual life insurance company shall determine the amount of surplus earned by the company during that year.
(b)  Not later than the end of the second year in which a policy issued by the company is in effect, the company shall provide to the policyholder:
(1)  an annual accounting of the company's divisible surplus;  and
(2)  if all premiums due on the policy have been paid for at least two years, a fair allocation of the company's divisible surplus that remains after deducting:
(A)  any amount approved by the commissioner for retirement of any unpaid loans made under Section 882.253;
(B)  the company's contingency reserve;  and
(C)  any earned surplus the company allocated to unencumbered surplus as provided by this chapter.
(c)  The company shall immediately submit to the commissioner a detailed report of an allocation of divisible surplus made under this section.  The president or secretary of the company shall sign the report under oath.
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 H. Dividends › Section 882.353. Department Approval of Allocation; Revisions

Sec. 882.353.  DEPARTMENT APPROVAL OF ALLOCATION;  REVISIONS.  (a)  The department shall approve a mutual life insurance company's allocation of divisible surplus under Section 882.352 if the department finds that the allocation is fair to the policyholders and complies with this chapter.
(b)  If the department does not approve a company's allocation of surplus, the department shall revise the allocation in a manner that the department determines is fair to the policyholders and necessary to comply with this chapter.  The department shall certify the revisions to the company.
(c)  An allocation of surplus approved under Subsection (a) takes effect on the date of approval.  An allocation of surplus revised by the department under Subsection (b) takes effect on the date the department certifies the revisions 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 882 - Mutual Life Insurance Companies › Subchapter H. Dividends › Section 882.354. Dividend Payment Method

Sec. 882.354.  DIVIDEND PAYMENT METHOD.  (a)  A dividend declared by a mutual life insurance company under this subchapter shall be paid in:
(1)  cash;  or
(2)  the equivalent of the dividend's cash value as provided by an option stated in the policy and selected by the policyholder.
(b)  A policyholder shall notify the company in writing of an option selected by the policyholder under Subsection (a)(2).
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 H. Dividends › Section 882.355. Limitations on Divisible Surplus

Sec. 882.355.  LIMITATIONS ON DIVISIBLE SURPLUS.  A mutual life insurance company's divisible surplus available for payment of dividends to the company's policyholders may not include:
(1)  any part of the company's unencumbered surplus that has been:
(A)  allocated from the company's earned surplus;
(B)  transferred from the company's contingency reserve;  or
(C)  otherwise acquired by the company;
(2)  if the company was organized after September 5, 1955, any part of the company's unencumbered surplus required to comply with Section 882.301;  or
(3)  if the company's unencumbered surplus is less than $25,000, the part of the company's earned surplus for the preceding calendar year in excess of 75 percent of the earned surplus.
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 H. Dividends › Section 882.356. Payment of Dividends Not Required

Sec. 882.356.  PAYMENT OF DIVIDENDS NOT REQUIRED.  This subchapter does not require a mutual life insurance company to pay a dividend to a policyholder if the unencumbered surplus acquired by the company is impaired.
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 I. Contingency Reserve › Section 882.401. Amount of Contingency Reserve

Sec. 882.401.  AMOUNT OF CONTINGENCY RESERVE.  (a)  A mutual life insurance company organized under this chapter may maintain a contingency reserve that exceeds the reserves and liabilities provided by this chapter.  The amount of the contingency reserve may not exceed the greater of:
(1)  $10,000;
(2)  an amount that:
(A)  equals 20 percent of the company's policy reserves and policy liabilities plus one percent of the amount of the company's life insurance in force;  and
(B)  does not exceed $750,000;  or
(3)  an amount that equals 20 percent of the company's policy reserves and policy liabilities.
(b)  In determining the amount of a company's policy reserves and policy liabilities for purposes of this section, the company may only include the following, after deducting the net value of the company's risks reinsured by other solvent assuming insurers:
(1)  the company's reserves on outstanding life insurance policies and annuity contracts, contracts issued as supplemental to the policies or contracts or in connection with the policies or contracts or provisions included in policies or contracts that insure against disability or accidental death;  and
(2)  the company's liabilities for:
(A)  optional modes of settlement;  or
(B)  dividends left on deposit at interest.
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 I. Contingency Reserve › Section 882.402. Excess Contingency Reserve

Sec. 882.402.  EXCESS CONTINGENCY RESERVE.  (a)  The commissioner, for good cause shown, may issue an order authorizing a mutual life insurance company to maintain a contingency reserve that exceeds the amount of the reserve authorized by Section 882.401.
(b)  The order must state:
(1)  a period not exceeding one year during which the company may maintain the excess contingency reserve;  and
(2)  each reason for authorizing the excess contingency reserve.
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 I. Contingency Reserve › Section 882.403. Contingency Reserve Requirements

Sec. 882.403.  CONTINGENCY RESERVE REQUIREMENTS.  (a)  A mutual life insurance company's contingency reserve as authorized by this subchapter must be:
(1)  invested as provided by law;  and
(2)  used only to pay death claims and dividends to policyholders.
(b)  If the interest and earnings from the investment of a company's contingency reserve exceed the amount of reserve authorized by Section 882.401 or 882.402, the company shall pay the excess amount to the policyholders of the company in the form of dividends as provided by 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 882 - Mutual Life Insurance Companies › Subchapter I. Contingency Reserve › Section 882.404. Allocation of Contingency Reserve to Unencumbered Surplus

Sec. 882.404.  ALLOCATION OF CONTINGENCY RESERVE TO UNENCUMBERED SURPLUS.  If a mutual life insurance company's unencumbered surplus is less than $100,000, the company may allocate any part of the company's contingency reserve to the company's unencumbered surplus.
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 I. Contingency Reserve › Section 882.405. Designation of Contingency Reserve as Unassigned Surplus

Sec. 882.405.  DESIGNATION OF CONTINGENCY RESERVE AS UNASSIGNED SURPLUS.  The contingency reserve described by this subchapter is and may be treated as unassigned surplus, including designating the contingency reserve as unassigned surplus in financial statements.
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 J. Policy Requirements › Section 882.451. Applicability of Certain Provisions

Sec. 882.451.  APPLICABILITY OF CERTAIN PROVISIONS.  Sections 882.452, 882. 453, and 882.454 do 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 J. Policy Requirements › Section 882.452. Type of Policy Authorized

Sec. 882.452.  TYPE OF POLICY AUTHORIZED.  A mutual life insurance company may issue a policy only on the participating plan with dividends payable annually 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 J. Policy Requirements › Section 882.453. Policy Form

Sec. 882.453.  POLICY FORM.  An insurance policy issued by a mutual life insurance company must:
(1)  be on a form approved by the department;  and
(2)  contain the following statement on both the front and reverse sides of the policy:  "The form of this policy is approved by the Texas Department 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 882 - Mutual Life Insurance Companies › Subchapter J. Policy Requirements › Section 882.454. Limitation on Amount of Policy Value for Certain Companies

Sec. 882.454.  LIMITATION ON AMOUNT OF POLICY VALUE FOR CERTAIN COMPANIES.  If the total amount of a mutual life insurance company's insurance in force is less than $10 million, the company may not issue a policy that, after deducting any reinsurance, binds the company for more than $5,000 on a single 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 882 - Mutual Life Insurance Companies › Subchapter J. Policy Requirements › Section 882.455. Table of Guaranteed Values

Sec. 882.455.  TABLE OF GUARANTEED VALUES.  (a)  Each insurance policy issued by a mutual life insurance company must contain a table of guaranteed values.  The guaranteed values become nonforfeitable not later than the date of payment of the third full annual premium.
(b)  The table of guaranteed values shall be drawn in accordance with the law governing life, health, and accident 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 882 - Mutual Life Insurance Companies › Subchapter K. Total Assumption Reinsurance Agreements › Section 882.501. Total Assumption Reinsurance Agreements Between Life Insurance Companies

Sec. 882.501.  TOTAL ASSUMPTION REINSURANCE AGREEMENTS BETWEEN LIFE INSURANCE COMPANIES.  (a)  A domestic mutual life insurance company and any other domestic or foreign life insurance company may enter into a total assumption reinsurance agreement if the company assuming the policies under the agreement is authorized to engage in the kinds of insurance provided by those policies.
(b)  Before a total assumption reinsurance agreement may be entered into:
(1)  the agreement must be submitted to the department;  and
(2)  the commissioner must approve the agreement as fully protecting the interests of each domestic company's policyholders.
(c)  After an assumption reinsurance agreement in which the ceding company is a domestic mutual insurance company is approved by the commissioner as required by Subsection (b), the agreement must be approved by the policyholders of the ceding domestic company in the same manner as required for a merger or consolidation under Subchapter L.
(d)  When the reinsurance agreement described by Subsection (c) is effective, the assuming company is entitled to the same rights, privileges, and benefits granted a company that assumes a company by merger or consolidation as provided by Subchapter L.
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 882.551. Applicability of Subchapter

Sec. 882.551.  APPLICABILITY OF SUBCHAPTER.  This subchapter applies only to a merger or consolidation in which at least one of the parties to the transaction is a mutual life 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 882 - Mutual Life Insurance Companies › Subchapter L. Mergers and Consolidations › Section 882.552. Authority to Merge or Consolidate

Sec. 882.552.  AUTHORITY TO MERGE OR CONSOLIDATE.  A domestic or foreign mutual life insurance company may merge with a domestic or foreign mutual or stock legal reserve life insurance company or consolidate into a new domestic or foreign mutual or stock 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 L. Mergers and Consolidations › Section 882.553. Proposed Plan of Merger or Consolidation; Filing With Commissioner

Sec. 882.553.  PROPOSED PLAN OF MERGER OR CONSOLIDATION;  FILING WITH COMMISSIONER.  (a)  If the boards of directors of at least two life insurance companies determine by majority vote to merge or consolidate, the boards of directors shall prepare a proposed plan of merger or consolidation.  The plan may contain:
(1)  a future allocation of divisible surplus;  or
(2)  any other fair arrangement by which any equitable interests of the mutual life insurance company's policyholders may be adjusted.
(b)  The boards of directors shall file the proposed plan with the commissioner for approval.
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 882.554. Hearing on Plan

Sec. 882.554.  HEARING ON PLAN.  As soon as practicable after a proposed plan is filed with the commissioner, the commissioner shall hold a hearing to determine whether to approve the 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 882 - Mutual Life Insurance Companies › Subchapter L. Mergers and Consolidations › Section 882.555. Commissioner Determination on Plan

Sec. 882.555.  COMMISSIONER DETERMINATION ON PLAN.  (a)  As soon as practicable after the commissioner holds a hearing on a proposed plan under Section 882.554, the commissioner shall approve the plan unless the commissioner determines that:
(1)  the plan is contrary to law;  or
(2)  implementation of the plan:
(A)  would not be in the best interests of the policyholders of any mutual life insurance company that is a party to the plan;  or
(B)  would substantially reduce the security of or service to be rendered to policyholders of any mutual insurance company that is a party to the plan, regardless of whether the policyholders reside in this state or elsewhere.
(b)  In determining whether to approve a proposed plan, the commissioner may consider all relevant financial or other information, including past, present, and future operations and accumulations of each company that is a party to the plan.
(c)  If the commissioner approves the proposed plan, the commissioner shall notify each party to the plan of the approval.
(d)  If the commissioner disapproves the proposed plan, the commissioner shall, within a reasonable time after holding a hearing under Section 882.554:
(1)  specify in detail each reason for the disapproval;  and
(2)  notify each party to the 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 882 - Mutual Life Insurance Companies › Subchapter L. Mergers and Consolidations › Section 882.556. Approval of Plan by Policyholders

Sec. 882.556.  APPROVAL OF PLAN BY POLICYHOLDERS.  (a)  As soon as practicable after receiving from the commissioner notice of approval of a proposed plan under Section 882.555, the board of directors of each mutual life insurance company that is a party to the plan shall submit the plan to the policyholders for a vote at an annual or special meeting.
(b)  Not later than the 15th day before the date of the meeting, the company shall provide written notice of the meeting to the policyholders as provided by the company's bylaws.  The notice must:
(1)  be sent to the policyholder's last known address;
(2)  state that one of the purposes of the meeting is to vote on the proposed plan;  and
(3)  be accompanied by a copy of the proposed plan.
(c)  At a meeting under Subsection (a), each policyholder:
(1)  is entitled to the number of votes as provided by Section 882.155;  and
(2)  may vote:
(A)  in person;
(B)  by written proxy;  or
(C)  by mailed ballot.
(d)  A proposed plan is approved by the policyholders on the affirmative vote of at least two-thirds of the votes cast at the meeting.
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 882.557. Domestic Stock Life Insurance Company; Approval of Plan by Shareholders

Sec. 882.557.  DOMESTIC STOCK LIFE INSURANCE COMPANY;  APPROVAL OF PLAN BY SHAREHOLDERS.  On notice of approval of a proposed plan under Section 882.555, the board of directors of each domestic stock life insurance company that is a party to the plan shall submit the plan for approval to the company's shareholders in the manner provided by Section 824.003.
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 882.558. Foreign Life Insurance Company; Approval of Plan by Policyholders or Shareholders

Sec. 882.558.  FOREIGN LIFE INSURANCE COMPANY;  APPROVAL OF PLAN BY POLICYHOLDERS OR SHAREHOLDERS.  On notice of approval of a proposed plan under Section 882.555, the board of directors of each foreign life insurance company that is a party to the plan shall submit the plan for approval to the company's policyholders or shareholders as provided by the law of the appropriate jurisdiction.
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 882.559. Filing of Affidavit of Plan Approval; Issuance of Certificate of Merger or Consolidation

Sec. 882.559.  FILING OF AFFIDAVIT OF PLAN APPROVAL;  ISSUANCE OF CERTIFICATE OF MERGER OR CONSOLIDATION.  (a)  On the approval of a proposed plan under Section 882.556, 882.557, or 882.558, the president or a vice president and the secretary or an assistant secretary of each company that is a party to the plan shall execute and file with the department an affidavit stating that the plan has been approved by the policyholders or shareholders of the company as required by this subchapter.
(b)  If the department finds that the affidavit complies with law, the department shall:
(1)  endorse the affidavit with:
(A)  the word "filed";  and
(B)  the date of filing;
(2)  if the plan is a plan of merger, issue a certificate of merger to the surviving company or the company's representative;  and
(3)  if the plan is a plan of consolidation, issue a certificate of consolidation to the new company on the issuance of a charter and a certificate of authority to the new company after:
(A)  submission of proper articles of incorporation to the department;
(B)  approval by the department in accordance with procedures required for the issuance of a new charter;  and
(C)  submission of proof that the new company has policyholder surplus at least equal to that of the mutual life insurance company that is a party to the consolidation and has the largest surplus.
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 882.560. Effective Date of Merger or Consolidation

Sec. 882.560.  EFFECTIVE DATE OF MERGER OR CONSOLIDATION.  A merger or consolidation takes effect on the later of:
(1)  the date of issuance of the certificate of merger or consolidation;  or
(2)  a date specified in the plan of merger or consolidation.
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 882.561. Assumption of Outstanding Insurance Policies

Sec. 882.561.  ASSUMPTION OF OUTSTANDING INSURANCE POLICIES.  (a)  On the effective date of a merger or consolidation under this subchapter, a new or surviving life insurance company resulting from the merger or consolidation assumes each insurance policy outstanding against each company that merges or consolidates on the same terms and under the same conditions as if the policy had continued in force through the original company.
(b)  The new or surviving insurance company shall implement the terms of the policy.
(c)  The new or surviving insurance company is entitled to:
(1)  all rights and privileges under the policy;  and
(2)  all reserves and surplus that accumulated on the policy before the merger or consolidation.
(d)  A policyholder of a mutual life insurance company that is a party to a merger or consolidation resulting in a new or surviving stock life insurance company is not entitled to any voting rights in the new or surviving 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 882 - Mutual Life Insurance Companies › Subchapter L. Mergers and Consolidations › Section 882.562. Assumption of Liabilities

Sec. 882.562.  ASSUMPTION OF LIABILITIES.  On the effective date of a merger or consolidation under this subchapter, a new or surviving life insurance company resulting from the merger or consolidation assumes all liabilities of the original 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 882 - Mutual Life Insurance Companies › Subchapter L. Mergers and Consolidations › Section 882.563. Effect of Merger or Consolidation on Property

Sec. 882.563.  EFFECT OF MERGER OR CONSOLIDATION ON PROPERTY.  On the effective date of a merger or consolidation under this subchapter, the property rights, including any right of recovery, of each company that is a party to the merger or consolidation are transferred to the new or surviving life insurance company resulting from the merger or consolidation without a deed or other transfer.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.