Tex. Ins. Code § 964.054 · Subchapter B. CAPTIVE INSURANCE COMPANIES
RESERVES AND ACCOUNTING BASIS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A captive insurance company shall maintain reserves in an amount stated in the aggregate to provide for the payment of all losses or claims for which the captive insurance company may be liable and that are:
(1) incurred on or before the date of the annual report under Section 964.060, whether reported or unreported; and
(2) unpaid as of the date of the annual report under Section 964.060.
(b) In addition to the reserves required by Subsection (a), a captive insurance company shall maintain reserves in an amount estimated to provide for the expenses of adjustment or settlement of the losses or claims described by Subsection (a).
(c) The captive insurance company shall use generally accepted accounting principles as an accounting basis except that a captive insurance company that is required to hold a certificate of authority under another jurisdiction's insurance laws shall use statutory accounting principles.
Notes and commentary — not statutory text
History
Added by Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 2, eff. June 14, 2013.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.964.htm
- Text hash
- sha256 d4252a7bb30de61e7ddf60509508f947674823d21c33894467d5d3c0d377b7be
- 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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