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Texas · Through 89th 2nd Called Legislative Session, 2025

Tex. Insurance Code § 884.559: ACTION AFTER AGREEMENT RATIFICATION.

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Where this section sits in the code
  1. INSURANCE CODE
  2. TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES
  3. SUBTITLE E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES
  4. CHAPTER 884. STIPULATED PREMIUM INSURANCE COMPANIES
  5. SUBCHAPTER L. DIRECT REINSURANCE AGREEMENTS WITH MUTUAL ASSESSMENT COMPANIES

(a) After ratification of the reinsurance agreement under Section 884.556, the mutual assessment company shall cease doing business and shall transfer all of its assets to the assuming stipulated premium company.

(b) The stipulated premium company shall assume:

(1) all policy liability in accordance with the reinsurance agreement; and

(2) all other liabilities in accordance with the method of payment of those liabilities.

(c) On transfer of a mutual assessment company's assets:

(1) the company shall promptly surrender its certificate of authority and charter to the department; and

(2) the company's corporate existence ceases.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.

Collected 2026-08-27T01:47:21Z. Source file · JSON

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