Issuance of Life Insurance Policy By Certain Associations

Sec. 887.203. ISSUANCE OF LIFE INSURANCE POLICY BY CERTAIN ASSOCIATIONS. (a) A local mutual aid association or statewide mutual assessment company that has a mortuary fund and expense fund with a combined value of at least $100,000 greater than the liabilities of the combined funds may issue a life insurance policy in the same manner as a company organized under Chapter 841. (b) An insurance policy issued as provided by Subsection (a): (1) may not insure an individual life for more than $5,000; (2) must be reserved as required for a company organized under Chapter 841; and (3) may be issued only on an endowment or limited pay basis. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.