Tex. Ins. Code § 887.405 · Subchapter I. RESERVES
COMPUTATION OF RESERVE LIABILITY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Each year, an association shall compute its reserve liability on all outstanding insurance certificates.
(b) To make the computation, an association:
(1) shall use the net premium basis in accordance with the reserve table and interest rate adopted by the association and approved by the commissioner; and
(2) may use group methods and approximate averages for fractions of a year.
(c) The reserve liability may be computed on not more than a one-year preliminary term.
(d) As soon as practical each year, the commissioner shall compute or cause to be computed the reserve liability of each association. To make the computation, the commissioner may use group methods and approximate averages for fractions of a year.
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.887.htm
- Text hash
- sha256 5e0ced1396901548e4af81709d26745f02be43c1045e11ae020ee7625367c18f
- 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.