Tex. Ins. Code § 912.309 · Subchapter G. REGULATION OF COUNTY MUTUAL INSURANCE COMPANY; FINANCIAL REQUIREMENTS
POLICYHOLDER LOANS TO COMPANY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A policyholder may loan to a county mutual insurance company money as necessary:
(1) for the company to engage in the company's business; or
(2) to enable the company to comply with a requirement of this chapter, including the unencumbered surplus requirement under Section 912.308.
(b) Subject to the approval of the commissioner, the county mutual insurance company may repay a loan and agreed interest, at an annual rate not to exceed 10 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 county mutual insurance company may not pay a commission, promotion expense, or other bonus in connection with a loan made to the company.
(e) A county 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.912.htm
- Text hash
- sha256 ee3a668f2336e544a16d29d0cc45d1985100332321b9e5f3c63d9acb1a7a014a
- 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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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.