Texas Insurance Code 422.002 – Purposes
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(a) The purposes of this chapter are to:
(1) require an insurer to maintain unencumbered assets in an amount equal to the insurer’s policy reserve liabilities;
(2) provide preferential claims against assets in favor of an owner, beneficiary, assignee, certificate holder, or third-party beneficiary of an insurance policy; and
(3) prevent the pledge or encumbrance of assets in excess of certain amounts without a prior written order of the commissioner.
(b) This chapter and the powers granted and functions authorized by this chapter shall be exercised to accomplish the purposes of this chapter.
Terms Used In Texas Insurance Code 422.002
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005