AI-assisted research summary: A stipulated premium company may not cover more than $10,000 of risk for one person under certain accident, health, or hospitalization policies unless its capital is at least $700,000.
Sec. 884.308. LIMITS ON AMOUNT OF ACCIDENT AND HEALTH INSURANCE POLICIES. (a) A stipulated premium company may not assume liability on or indemnify one person for any risk under one or more accident, health, or hospitalization insurance policies, or any combination of those policies in an amount that exceeds $10,000, unless the amount of the issued, outstanding, and stated capital of the company is at least $700,000. (b) A stipulated premium company that before January 1, 2002, ceases to assume liability on, or indemnify any risk under a policy described by Subsection (a) in the amount specified by Subsection (a), and notifies the commissioner of that action is exempt from the requirements of Subsection (a) until the date the company resumes writing those policies. A company that resumes assuming liability on or indemnifying risks under these policies shall comply with Subsections (a) and (c). For purposes of this subsection, renewal of a policy is not considered to be writing a policy. (c) A stipulated premium company that is exempt under Subsection (b) shall maintain its issued, outstanding, and stated capital in an amount that is at least: (1) $100,000, if the last date that the company writes a policy described by Subsection (a) is before January 1, 1993; (2) $160,000, if the last date that the company writes a policy described by Subsection (a) is during 1993; (3) $220,000, if the last date that the company writes a policy described by Subsection (a) is during 1994; (4) $280,000, if the last date that the company writes a policy described by Subsection (a) is during 1995; (5) $340,000, if the last date that the company writes a policy described by Subsection (a) is during 1996; (6) $400,000, if the last date that the company writes a policy described by Subsection (a) is during 1997; (7) $460,000, if the last date that the company writes a policy described by Subsection (a) is during 1998; (8) $520,000, if the last date that the company writes a policy described by Subsection (a) is during 1999; (9) $580,000, if the last date that the company writes a policy described by Subsection (a) is during 2000; and (10) $640,000, if the last date that the company writes a policy described by Subsection (a) is during 2001. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.