Sec. 884.206.  COMMISSIONER MAY REQUIRE LARGER CAPITAL AND SURPLUS AMOUNTS.  (a)  The commissioner by rule may require a stipulated premium company that writes or assumes life insurance, annuity contracts, or accident and health insurance for a risk to one person in an amount that exceeds $10,000 to maintain capital and surplus in amounts that exceed the minimum amounts required by this chapter because of:
(1)  the nature and kind of risks the company underwrites or reinsures;
(2)  the premium volume of risks the company underwrites or reinsures;
(3)  the composition, quality, duration, or liquidity of the company's investment portfolio;
(4)  fluctuations in the market value of securities the company holds;  or
(5)  the adequacy of the company's reserves.
(b)  A rule adopted under Subsection (a) must be designed to ensure the financial solvency of a stipulated premium company for the protection of policyholders and may not require that the total admitted assets of a company exceed 106 percent of its total liabilities.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.