Tex. Ins. Code § 883.162 · Subchapter D. POWERS, DUTIES, AND OPERATION OF COMPANY
LOANS TO COMPANY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A person, including a director, officer, or member of a mutual insurance company, may loan to the company money necessary:
(1) for the company to engage in the company's business; or
(2) to enable the company to comply with a legal requirement.
(b) The mutual insurance company may repay a loan and agreed interest, at an annual rate not to exceed 20 percent, only from the surplus remaining after the company provides for the company's reserves, other liabilities, and required surplus.
(c) A loan under this section or interest on a loan is not otherwise a liability or claim against the company or any of its assets.
(d) A mutual insurance company may not pay a commission or promotion expense in connection with a loan made to the company.
(e) A mutual insurance company shall report in its annual statement the amount of each loan made to the company.
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.883.htm
- Text hash
- sha256 b0b7babd4bdf9da59382667e6218dc17d44a7ea8bfc5dda38e5d2a4c195a5f4e
- 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
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.