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.