Texas Insurance Code 882.251 – Limited Authority to Borrow Money
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(a) Except as provided by this subchapter, a mutual life insurance company may not borrow money for any purpose other than to pay a death loss.
(b) A company may not incur a debt on an account for which any part of the company’s assets that exceeds the assets represented by or derived from the expense loading in the premiums collected by the company is subject to execution on a judgment.
Terms Used In Texas Insurance Code 882.251
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
(c) Subsection (b) does not prohibit a company from incurring a debt on an account:
(1) under a policy issued by the company; or
(2) to borrow money to pay a death loss.