Texas Insurance Code 882.253 – Loans to Company
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(a) An officer or director of a mutual life insurance company, or a person authorized under Chapter 825, may loan to the company money to:
(1) promote or conserve the company’s business; or
(2) enable the company to comply with a legal requirement.
(b) The company may repay a loan and agreed interest, at an annual rate not to exceed 10 percent, from the surplus remaining after the company provides for the company’s reserves and other liabilities.
Terms Used In Texas Insurance Code 882.253
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) A loan under this section or interest on a loan is not otherwise a liability or claim against the company or any of its assets.
(d) A mutual life insurance company may not pay a commission or promotion expense in connection with a loan made to the company.
(e) A mutual life insurance company shall report in its annual statement the amount of each loan.