CHAPTER 426. RESERVES FOR WORKERS' COMPENSATION INSURANCE COMPANIES - Texas Statutes

INSURANCE CODE

TITLE 4. REGULATION OF SOLVENCY

SUBTITLE B. RESERVES AND INVESTMENTS

CHAPTER 426. RESERVES FOR WORKERS' COMPENSATION INSURANCE

COMPANIES

Sec. 426.001. RESERVES REQUIRED. A workers' compensation

insurance company engaged in business in this state shall

maintain reserves in an amount estimated in the aggregate to

provide for the payment of all losses and claims incurred,

whether reported or unreported. The company may not maintain

reserves in an amount that is greater than reasonably necessary

for that purpose.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 426.002. COMPUTATION OF RESERVES. Reserves required by

Section 426.001 must be computed in accordance with any rules

adopted by the commissioner to adequately protect insureds,

secure the solvency of the workers' compensation insurance

company, and prevent unreasonably large reserves.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 426.003. MAINTENANCE OF RESERVES; NOTICE OF NONCOMPLIANCE.

(a) If a workers' compensation insurance company's reserves are

determined under this chapter to be:

(1) inadequate, the commissioner shall notify the company and

require the company to establish and maintain reasonable

additional reserves; or

(2) unreasonably large, the commissioner shall notify the

company and require the company to reduce the amount of reserves

to a reasonable amount.

(b) Not later than the 60th day after the date of notification

of noncompliance under Subsection (a), the company shall:

(1) restore compliance as required by Subsection (a); and

(2) file a statement of restored compliance, accompanied by any

documentation required by the commissioner.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.