US Laws, Codes, Statutes & Cases

INSURANCE CODE

SUBTITLE B. RESERVES AND INVESTMENTS

CHAPTER 421. RESERVES IN GENERAL


	§ 421.001. RESERVES REQUIRED.  (a) An insurer shall 
maintain reserves in an amount estimated in the aggregate to 
provide for the payment of all losses or claims for which the 
insurer may be liable and that are:
		(1)  incurred on or before the date of statement, 
whether reported or unreported;  and
		(2)  unpaid as of the date of statement.                                      
	(b)  In addition to the reserves required by Subsection (a), 
an insurer shall maintain reserves in an amount estimated to 
provide for the expenses of adjustment or settlement of the losses 
or claims described by that subsection.
	(c)  The commissioner shall adopt each current formula 
recommended by the National Association of Insurance Commissioners 
for establishing reserves for each line of insurance.  Each insurer 
writing a line of insurance to which a formula adopted under this 
subsection applies shall establish reserves in compliance with that 
formula.

Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.           


	§ 421.002. CERTIFICATES FROM OTHER STATES.  In computing 
the reserve liability of an insurer, the commissioner may accept 
the certificate of the officer of another state charged with the 
duty of supervising the insurer if:
		(1)  the insurer is organized under the laws of the 
other state;  and       
		(2)  the certificate shows that the reserve liability 
has been computed in accordance with Section 421.001.

Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.