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A BILL TO BE ENTITLED
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AN ACT
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relating to capital stock requirements for certain insurance |
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companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 822.056(d), Insurance Code, is amended |
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to read as follows: |
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(d) The shareholders of an insurance company authorizing |
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shares of stock without par value must pay a total amount of at |
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least $250,000 for the shares [in good faith subscribe and pay for |
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shares representing at least 50 percent of the authorized shares |
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without par value] before the company is granted a charter or has |
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its charter amended to authorize the issuance of shares without par |
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value. [The total amount paid for the shares must be at least |
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$250,000.] |
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SECTION 2. Section 841.057(c), Insurance Code, is amended |
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to read as follows: |
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(c) The shareholders of an insurance company authorizing |
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shares of stock without par value must pay a total amount of at |
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least $250,000 for the shares [in good faith subscribe and pay for |
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shares representing at least 50 percent of the authorized shares |
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without par value] before the company is granted a charter or has |
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its charter amended to authorize the issuance of shares without par |
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value. [The total amount paid for the shares must be at least |
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$250,000.] |
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SECTION 3. The following provisions of the Insurance Code |
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are repealed: |
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(1) Section 822.055(d); |
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(2) Section 841.055(c); and |
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(3) Section 841.056(d). |
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SECTION 4. This Act takes effect September 1, 2023. |