Texas Insurance Code 406.003 – Required Deposit: Standards and Criteria
Current as of: 2024 | Check for updates
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The commissioner, in the commissioner’s sole discretion, may require an insurer to make a deposit under this chapter if the commissioner determines that one of the following conditions, if not rectified, may potentially be hazardous to the insurer’s policyholders, enrollees, or creditors, or to the public:
(1) the insurer’s financial or operating condition, reviewed in conjunction with the kinds and nature of risks insured;
(2) the insurer’s method of operation;
(3) the insurer’s relationship with affiliates;
(4) the nature and amount of the insurer’s investments;
(5) the insurer’s contracts that may lead to a contingent liability; or
(6) the insurer’s agreements with respect to guaranty and surety.