(a) After ratification of the reinsurance agreement under § 884.556, the mutual assessment company shall cease doing business and shall transfer all of its assets to the assuming stipulated premium company.
(b) The stipulated premium company shall assume:
(1) all policy liability in accordance with the reinsurance agreement; and
(2) all other liabilities in accordance with the method of payment of those liabilities.

Terms Used In Texas Insurance Code 884.559

  • 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.

(c) On transfer of a mutual assessment company’s assets:
(1) the company shall promptly surrender its certificate of authority and charter to the department; and
(2) the company’s corporate existence ceases.

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