Tex. Ins. Code § 3502.155 · Subchapter D. FINANCIAL REQUIREMENTS
CONTINGENCY RESERVE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) In addition to the capital, surplus, and reserves required by Sections 3502.152, 3502.153, and 3502.154, a mortgage guaranty insurer shall establish a contingency reserve and report the contingency reserve as a liability in the insurer's financial statements.
(b) To establish and maintain the contingency reserve, the mortgage guaranty insurer shall annually contribute to the contingency reserve 50 percent of the earned premiums on the insurer's mortgage guaranty insurance business. The reserved earned premiums may be released to the insurer's surplus annually after the premiums have been maintained for 120 months.
(c) In addition, the mortgage guaranty insurer may withdraw premiums from the contingency reserve in any year for which the insurer can demonstrate to the department that the incurred losses for that year exceed 35 percent of the corresponding earned premiums for that year. The insurer shall reduce any subsequent annual release to surplus from the established contingency reserve by an amount equal to the amount withdrawn and released for the losses. The insurer shall deduct from subsequent annual releases any balance that exceeds the normal annual release from the contingency reserve.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.3502.htm
- Text hash
- sha256 7c5166e35d23f7b636f1440a2ac492061f7a84e0e4431450c821d196f257537a
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Insurance Code
- Tex. Ins. Code § 3502.152CAPITAL AND SURPLUS REQUIREMENTS.Printed as Sections 3502.152, 3502.153, and 3502.154
- Tex. Ins. Code § 3502.153UNEARNED PREMIUM RESERVE.Printed as Sections 3502.152, 3502.153, and 3502.154
- Tex. Ins. Code § 3502.154LOSS RESERVE.Printed as Sections 3502.152, 3502.153, and 3502.154
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.