Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter D - RISK-BASED CAPITAL AND SURPLUS AND OTHER REQUIREMENTS › Section 7.404 - Transition Period for Stipulated Premium Insurance Companies

Current through Reg. 49, No. 28; July 12, 2024
(a) A stipulated premium insurance company
				  shall comply with §
										7.402
				  of this subchapter (relating to Risk-Based Capital and Surplus Requirements for
				  Insurers and HMOs).
(b) A
				  stipulated premium insurance company that on December 31, 2009, had less than
				  the minimum amount of capital and surplus required for a newly incorporated
				  company under the Insurance Code §
										884.054
				  must:
(1) not later than December 31, 2010,
				  have increased the amount of its capital and surplus by at least 10 percent of
				  the difference between the amount of minimum capital and surplus required for a
				  newly incorporated company under the Insurance Code §
											884.054(a)
				  and (c) and the amount of the company's
				  capital and surplus on December 31, 2009;
(2) not later than December 31, 2011, have
				  increased the amount of its capital and surplus by at least 20 percent of the
				  difference between the amount of minimum capital and surplus required for a
				  newly incorporated company under §884.054(a) and (c) and the amount of the
				  company's capital and surplus on December 31, 2009;
(3) not later than December 31, 2012, have
				  increased the amount of its capital and surplus by at least 30 percent of the
				  difference between the amount of minimum capital and surplus required for a
				  newly incorporated company under §884.054 and the amount of the company's
				  capital and surplus on December 31, 2009;
(4) not later than December 31, 2013, have
				  increased the amount of its capital and surplus by at least 40 percent of the
				  difference between the amount of minimum capital and surplus required for a
				  newly incorporated company under §884.054 and the amount of the company's
				  capital and surplus on December 31, 2009;
(5) not later than December 31, 2014, have
				  increased the amount of its capital and surplus by at least 50 percent of the
				  difference between the amount of minimum capital and surplus required for a
				  newly incorporated company under §884.054 and the amount of the company's
				  capital and surplus on December 31, 2009;
(6) not later than December 31, 2015, have
				  increased the amount of its capital and surplus by at least 60 percent of the
				  difference between the amount of minimum capital and surplus required for a
				  newly incorporated company under §884.054 and the amount of the company's
				  capital and surplus on December 31, 2009;
(7) not later than December 31, 2016, have
				  increased the amount of its capital and surplus by at least 70 percent of the
				  difference between the amount of minimum capital and surplus required for a
				  newly incorporated company under §884.054 and the amount of the company's
				  capital and surplus on December 31, 2009;
(8) not later than December 31, 2017, have
				  increased the amount of its capital and surplus by at least 80 percent of the
				  difference between the amount of minimum capital and surplus required for a
				  newly incorporated company under §884.054 and the amount of the company's
				  capital and surplus on December 31, 2009;
(9) not later than December 31, 2018, have
				  increased the amount of its capital and surplus by at least 90 percent of the
				  difference between the amount of minimum capital and surplus required for a
				  newly incorporated company under §884.054 and the amount of the company's
				  capital and surplus on December 31, 2009; and
(10) not later than December 31, 2019, have
				  at least the minimum amount of capital and surplus required under §884.054
				  for a newly incorporated company.