Division of Funds: Accident and Health Insurance Certificates and Certain Life Insurance Certificates

Sec. 887.354. DIVISION OF FUNDS: ACCIDENT AND HEALTH INSURANCE CERTIFICATES AND CERTAIN LIFE INSURANCE CERTIFICATES. (a) This section applies to: (1) a life insurance certificate in force on December 31, 1965, to which Section 887.353 does not apply; and (2) an accident, health, or hospitalization insurance certificate. (b) An association shall deposit in a mortuary fund an amount equal to at least 60 percent of the association's assessments, not including membership fees. (c) An association shall deposit in an expense fund: (1) membership fees; and (2) the remaining portion of the assessments not deposited under Subsection (b). (d) This section does not apply to an association operating on an assessment-as-needed basis. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.