A general casualty company may deposit required securities or cash with the comptroller, may later withdraw the deposit if it shows it has left business in the other jurisdiction and has no unsecured liabilities there, and may swap deposited securities for certain approved substitutes. The comptroller must hold the deposit for policyholders.
Sec. 861.252. SECURITY DEPOSIT. (a) Repealed by Acts 2013, 83rd Leg., R.S., Ch. 447, Sec. 2, eff. June 14, 2013. (b) If, as a prerequisite to engaging in the business of insurance in another state, country, or province, a general casualty company is required to deposit with the appropriate officer of that state, country, or province, or with the comptroller, securities or cash, the company may deposit with the comptroller any authorized securities or cash sufficient to meet the requirement. The comptroller shall receive and hold the deposit exclusively for the protection of policyholders of the company. (c) A general casualty company may withdraw a deposit made under Subsection (b) if the company files with the department satisfactory evidence, as determined by the commissioner, that the company: (1) has withdrawn from business in the other state, country, or province; and (2) has no unsecured liabilities outstanding in the other state, country, or province. (d) A general casualty company may change the company's securities on deposit with the comptroller by withdrawing those securities and substituting an equal amount of other securities consisting only of: (1) United States currency; (2) bonds of any state; (3) bonds or other evidences of indebtedness of the United States the principal and interest of which are guaranteed by the United States; (4) bonds or other interest-bearing evidences of indebtedness of a county or municipality of any state; (5) notes secured by first mortgages: (A) on otherwise unencumbered real property in this state the title to which is valid; and (B) the payment of which is insured wholly or partly by the United States; or (6) another form of security acceptable to the commissioner. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.063, eff. April 1, 2009. Acts 2013, 83rd Leg., R.S., Ch. 447 (S.B. 801), Sec. 1, eff. June 14, 2013. Acts 2013, 83rd Leg., R.S., Ch. 447 (S.B. 801), Sec. 2, eff. June 14, 2013.