Sec. 846.154.  CASH RESERVE REQUIREMENTS.  (a)  The amount of cash reserves recommended under Section 846.153(c)(2) may not be less than the greater of:
(1)  20 percent of the total contributions in the preceding plan year;  or
(2)  20 percent of the total estimated contributions for the current plan year.
(b)  Cash reserves required by this section must be:
(1)  computed with proper actuarial regard for:
(A)  known claims, paid and outstanding;
(B)  a history of incurred but not reported claims;
(C)  claims handling expenses;
(D)  unearned premium;
(E)  an estimate for bad debts;
(F)  a trend factor;  and
(G)  a margin for error;  and
(2)  maintained in cash or federally guaranteed obligations of less than five-year maturity that have a fixed or recoverable principal amount or in other investments as the commissioner may authorize by rule.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.