Tex. Ins. Code § 862.151 · Subchapter D. IMPAIRMENT OF SURPLUS
REDUCTION OF CAPITAL STOCK AND PAR VALUE OF SHARES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) If the minimum surplus of a fire, marine, or inland marine insurance company is impaired in excess of the amount permitted under Subchapter B, Chapter 404, the commissioner may allow the company to amend its charter as provided by Sections 822.157 and 822.158 to reduce the amount of the company's capital stock and the par value of its shares in proportion to the extent of the permitted amount of impairment.
(b) A company acting under Subsection (a):
(1) may not reduce the par value of its shares below the sum computed under Section 822.055;
(2) may not deduct from the assets and property on hand more than $125,000;
(3) shall retain the remainder of the assets and property on hand as surplus assets;
(4) may not distribute any of the assets or property to the shareholders; and
(5) may not reduce the capital stock or surplus of the company to an amount less than the minimum capital and the minimum surplus required by Sections 822.202, 822.210, and 822.211, subject to Subchapter B, Chapter 404.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.068, eff. April 1, 2009.
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 5d20cf7222bc66bdbab6de3f1f1c15802b1d1f3c3242c84b7c0d48355c4d982e
- 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 ch. 404, subch. BIMPAIRMENT OF STOCK OR SURPLUSPrinted as Subchapter B, Chapter 404
- Tex. Ins. Code § 822.055SHARES OF STOCK WITH PAR VALUE.Printed as Section 822.055
- Tex. Ins. Code § 822.157ACTION BY COMMISSIONER AFTER FILING OF APPLICATION FOR CHARTER AMENDMENT.Printed as Sections 822.157 and 822.158
- Tex. Ins. Code § 822.158DETERMINATION ON APPLICATION FOR CHARTER AMENDMENT.Printed as Sections 822.157 and 822.158
- Tex. Ins. Code § 822.202FULL COVERAGE AUTOMOBILE INSURANCE; DETERMINATION OF AMOUNTS.Printed as Sections 822.202, 822.210, and 822.211
- Tex. Ins. Code § 822.210COMMISSIONER MAY REQUIRE LARGER CAPITAL AND SURPLUS AMOUNTS.Printed as Sections 822.202, 822.210, and 822.211
- Tex. Ins. Code § 822.211ACTION OF COMMISSIONER WHEN CAPITAL OR SURPLUS REQUIREMENTS NOT SATISFIED.Printed as Sections 822.202, 822.210, and 822.211
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.