Tex. Ins. Code § 862.102 · Subchapter C. REINSURANCE AND RESERVES
REINSURANCE OR RESERVES REQUIRED FOR FIRE INSURANCE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) An insurance company writing fire insurance in this state shall maintain reinsurance or unearned premium reserves on its policies in force.
(b) The commissioner may require that reserves required by Subsection (a) equal the unearned portions of the gross premiums in force after deducting reinsurance under Section 862.101, as computed on each respective risk from the policy's date of issue.
(c) If the commissioner does not impose a requirement under Subsection (b), the portions of the gross premium in force held as reinsurance or unearned premium reserves after deducting reinsurance under Section 862.101 shall be computed as follows:
Term for Which Policy Was Written Reserve for Unearned Premium
1 year or less 1/2
2 years 1st year 3/4
2nd year 1/4
3 years 1st year 5/6
2nd year 1/2
3rd year 1/6
4 years 1st year 7/8
2nd year 5/8
3rd year 3/8
4th year 1/8
5 years 1st year 9/10
2nd year 7/10
3rd year 1/2
4th year 3/10
5th year 1/10
More than 5 years pro rata
(d) Notwithstanding Subsection (c), an insurance company may compute, or the commissioner may require an insurance company to compute, the reserves on a quarterly, monthly, or more frequent pro rata basis.
(e) An insurance company that adopts a method for computing the reserve may not adopt another method without commissioner approval.
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.862.htm
- Text hash
- sha256 89f9f4a60e070816fd16def27fd7cd99942c1c975b9d07c5a7d8d393f8be0a7e
- 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.
Cited by 4 provisions
Provisions in this library whose text cites Tex. Ins. Code § 862.102. Each shows the citation as that text prints it.
Insurance Code
- Tex. Ins. Code § 491.051COMPUTATION OF RESERVE FOR INSURER WITH NO BASIS PRESCRIBED BY LAW.Printed as Section 862.102
- Tex. Ins. Code § 862.103REINSURANCE OR RESERVES REQUIRED FOR HOME WARRANTY INSURANCE COMPANIES.Printed as Section 862.102
- Tex. Ins. Code § 912.307RESERVE REQUIREMENTS.Printed as Section 862.102
- Tex. Ins. Code § 1701.057WITHDRAWAL OF INDIVIDUAL ACCIDENT AND HEALTH INSURANCE POLICY FORM APPROVAL.Printed as Section 862.102
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.