Tex. Ins. Code § 846.154 · Subchapter D. POWERS AND DUTIES OF MULTIPLE EMPLOYER WELFARE ARRANGEMENTS
CASH RESERVE REQUIREMENTS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The amount of cash reserves recommended under Section 846.153(c)(2) may not be less than the greater of:
(1) 20 percent of the total contributions in the preceding plan year; or
(2) 20 percent of the total estimated contributions for the current plan year.
(b) Cash reserves required by this section must be:
(1) computed with proper actuarial regard for:
(A) known claims, paid and outstanding;
(B) a history of incurred but not reported claims;
(C) claims handling expenses;
(D) unearned premium;
(E) an estimate for bad debts;
(F) a trend factor; and
(G) a margin for error; and
(2) maintained in cash or federally guaranteed obligations of less than five-year maturity that have a fixed or recoverable principal amount or in other investments as the commissioner may authorize by rule.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.846.htm
- Text hash
- sha256 5a8022762eccf2c344648ea953bfc11c77b6b2e612929a01534b96851a8ac60a
- 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
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