Texas Insurance Code 883.162 – Loans to Company
Current as of: 2024 | Check for updates
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(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.
Terms Used In Texas Insurance Code 883.162
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(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.