Sec. 887.354.  DIVISION OF FUNDS:  ACCIDENT AND HEALTH INSURANCE CERTIFICATES AND CERTAIN LIFE INSURANCE CERTIFICATES.  (a)  This section applies to:
(1)  a life insurance certificate in force on December 31, 1965, to which Section 887.353 does not apply;  and
(2)  an accident, health, or hospitalization insurance certificate.
(b)  An association shall deposit in a mortuary fund an amount equal to at least 60 percent of the association's assessments, not including membership fees.
(c)  An association shall deposit in an expense fund:
(1)  membership fees;  and
(2)  the remaining portion of the assessments not deposited under Subsection (b).
(d)  This section does not apply to an association operating on an assessment-as-needed basis.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.