Texas § IN.3502.155 - CONTINGENCY RESERVE
Full text of Texas The Texas Constitution § IN.3502.155 — CONTINGENCY RESERVE, with citation guidance and answers to common questions.
§ IN.3502.155. CONTINGENCY RESERVE
CONTINGENCY RESERVE. (a) In addition to the capital, surplus, and reserves required by Sections 3502.152 , 3502.153 , and 3502.154 , a mortgage guaranty insurer shall establish a contingency reserve and report the contingency reserve as a liability in the insurer's financial statements. (b) To establish and maintain the contingency reserve, the mortgage guaranty insurer shall annually contribute to the contingency reserve 50 percent of the earned premiums on the insurer's mortgage guaranty insurance business. The reserved earned premiums may be released to the insurer's surplus annually after the premiums have been maintained for 120 months. (c) In addition, the mortgage guaranty insurer may withdraw premiums from the contingency reserve in any year for which the insurer can demonstrate to the department that the incurred losses for that year exceed 35 percent of the corresponding earned premiums for that year. The insurer shall reduce any subsequent annual release to surplus from the established contingency reserve by an amount equal to the amount withdrawn and released for the losses. The insurer shall deduct from subsequent annual releases any balance that exceeds the normal annual release from the contingency reserve. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 3, eff. April 1, 2007.
Frequently Asked Questions About Texas § IN.3502.155
What does The Texas Constitution § IN.3502.155 cover?
Section IN.3502.155 ("CONTINGENCY RESERVE") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § IN.3502.155?
A common citation format is "The Texas Constitution § IN.3502.155" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § IN.3502.155 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.