Texas Insurance Code 887.057 – Deposit
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(a) An association shall, through the department, deposit with the comptroller an amount equal to the largest risk assumed by the association on any one life or individual.
(b) A deposit under this section must be cash or convertible securities subject to approval by the department.
Terms Used In Texas Insurance Code 887.057
- Comptroller: means the state comptroller of public accounts. See Texas Government Code 312.011
- Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
(c) A deposit is liable for the payment of any final judgment against the association and is subject to garnishment after a final judgment against the association.
(d) An association shall immediately replenish a deposit under this section if the deposit is impounded or depleted. If the association fails to immediately replenish the deposit on demand by the department, the department may consider the association insolvent and take appropriate action.
(e) An association may not state in an advertisement, in a letter, in literature, or otherwise that it has made a deposit with the department as required by law, unless the association also states fully:
(1) the purpose of the deposit;
(2) the conditions under which the deposit is made; and
(3) the exact amount and character of the deposit.