COMMISSIONER MAY REQUIRE LARGER CAPITAL AND SURPLUS AMOUNTS

(a) The commissioner by rule or guideline may require a domestic insurance company that writes or assumes a life insurance or annuity contract or assumes liability on or indemnifies one person for any risk under an accident and health insurance policy, or a combination of these policies, in an amount that exceeds $10,000, to maintain capital and surplus in amounts that exceed the minimum amounts required by this chapter because of: (1) the nature and kind of risks the company underwrites or reinsures; (2) the premium volume of risks the company underwrites or reinsures; (3) the composition, quality, duration, or liquidity of the company's investment portfolio; (4) fluctuations in the market value of securities the company holds; or (5) the adequacy of the company's reserves. (b) A rule adopted under Subsection (a) must be designed to ensure the financial solvency of an insurance company for the protection of policyholders but may not require that the total admitted assets of a company exceed 106 percent of its total liabilities. (c) A fraternal benefit society operating under Chapter 885 and a mutual life insurance company operating under Chapter 882 are subject to a rule adopted under this section.