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Texas Department of Insurance
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Commissioner’s Bulletin # B-0006-10

February 10, 2010


To:   ALL AUTHORIZED PROPERTY and CASUALTY CARRIERS

Re:   NEW LEGISLATION AFFECTING MINIMUM CAPITAL AND SURPLUS REQUIREMENTS FOR PROPERTY and CASUALTY ("PandC") INSURERS.


The purpose of this Bulletin is to inform and alert insurers of the increased minimum capital and surplus requirements for companies engaging in the P&C business of insurance. During the 81 st Legislative Session, Texas lawmakers passed House Bill 1476 ("HB 1476"), which increases minimum capital and surplus requirements for these insurers.

Specifically, HB 1476 amends TEX. INS. CODE §822.054 to require P&C carriers in Texas to have $2.5 million in capital and $2.5 million in surplus. All subject companies must meet the increased capital and surplus requirements.

HB 1476 further amends TEX. INS. CODE §822.212 to allow P&C insurers already authorized in Texas (as of September 1, 2009) to increase their capital incrementally, with full compliance reached by December 31, 2019, pursuant to the schedule outlined in revised TEX. INS. CODE §822.212(a). The Department has determined to also allow P&C insurers already authorized in Texas (as of September 1, 2009) to increase their surplus incrementally at the same rate as capital increases, with full compliance also to be reached by December 31, 2019. Without the phase-in, companies would be required to meet the increased minimum surplus requirements set out in HB 1476 as of September 1, 2009.

However, insurers that undergo a change in control after September 1, 2009 are required to meet the new minimum standards concurrently with the change in control pursuant to TEX. INS. CODE §822.212(b). These new requirements also apply to foreign and alien insurance companies, pursuant to TEX. INS. CODE ANN. §982.106.

The new amendment to Chapter 822 of the Insurance Code became effective as of September 1, 2009.

Contact for questions: Godwin Ohaechesi, Director of Company Licensing & Registration, 512-322-5076 or Godwin.Ohaechesi@tdi.state.tx.us.

Mike Geeslin
Commissioner of Insurance



For more information, contact: PropertyCasualty@tdi.texas.gov

Last updated: 7/23/2018