Tex. Insurance Code § 846.154
CASH RESERVE REQUIREMENTS
Texas · Texas Insurance Code · Status: effective
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- Citation
- Tex. Insurance Code § 846.154, CASH RESERVE REQUIREMENTS, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/679649
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Full text
(a) The amount of cash reserves recommended under Section 846.153(c)(2) may not be less than the greater of:
(1) 20 percent of the total contributions in the preceding plan year; or
(2) 20 percent of the total estimated contributions for the current plan year.
(b) Cash reserves required by this section must be:
(1) computed with proper actuarial regard for:
(A) known claims, paid and outstanding;
(B) a history of incurred but not reported claims;
(C) claims handling expenses;
(D) unearned premium;
(E) an estimate for bad debts;
(F) a trend factor; and
(G) a margin for error; and
(2) maintained in cash or federally guaranteed obligations of less than five-year maturity that have a fixed or recoverable principal amount or in other investments as the commissioner may authorize by rule.