Insurance Code § 883.155

Sec. 883.155. ISSUANCE OF POLICY FOR CASH PREMIUM ONLY. (a) A domestic mutual insurance company may not issue an insurance policy for a cash premium only unless: (1) the company possesses surplus above all liabilities in an amount at least equal to the minimum capital and surplus required of a stock insurance company engaging in the same kinds of insurance; (2) the company files with the department: (A) an application for the issuance of this type of policy; and (B) a certified copy of the resolution of the company's board of directors authorizing the issuance; and (3) the commissioner approves the documents filed under Subdivision (2). (b) A mutual insurance company that issues a policy for a cash premium only may waive all contingent premiums in any outstanding policies. (c) A foreign mutual insurance company authorized to engage in the business of insurance in this state may issue an insurance policy for a cash premium only and may waive contingent premiums on any of its outstanding policies in the same manner and subject to the same requirements as a mutual insurance company under this section that is engaged in the same kinds of insurance. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.