Texas Insurance Codes 5.61
From Wcc
§ 5.61 Adequate Reserves
| (a) Each workers' compensation insurer transacting business in this state shall maintain reserves in an amount estimated in the
aggregate to provide for the payment of all losses and claims incurred, whether reported or unreported, but not in an amount greater than reasonably required for those purposes. The reserves shall be computed in accordance with any rules adopted by the commissioner for the purpose of adequately protecting the insureds, securing the solvency of the insurer, and preventing unreasonably large reserves. (b) If the reserves are determined to be inadequate, the commissioner shall notify the insurer and require the insurer to establish and maintain reasonable additional reserves. If the reserves are determined to be unreasonably large, the commissioner shall notify the insurer and require the insurer to reduce its reserves to a reasonable amount. (c) Not later than the 60th day after the date of the notification by the commissioner that its reserves have been determined not to be in compliance with the requirements of this article, the insurer shall restore compliance and file a statement of restored compliance, together with such documentation as the commissioner may require. Acts 1951, 52nd Leg., p. 868, ch. 491. Amended by Acts 1989, 71st Leg., 2nd C.S., ch. 1, Sec. 13.07, eff. Jan. 1, 1991; Acts 1999, 76th Leg., ch. 1426, Sec. 19, eff. Sept. 1, 1999. |
