INSUFFICIENT MEMBERSHIP: CONSOLIDATION OR DISCONTINUATION OF GROUP, CLUB, OR CLASS OR LIQUIDATION OF COMPANY.
Tex. INS Code § 881.057.
in effect(a) If membership of a group, club, or class of a statewide mutual assessment company is less than the number required by Section 881.054 , the company shall immediately notify:
(1) the members of the group, club, or class; or
(2) if the company has only one group, club, or class, the members of the company.
(b) Not later than six months after a statewide mutual assessment company notifies the members of a group, club, or class under Subsection (a)(1), the company shall:
(1) increase the membership of the group, club, or class to at least the number required by Section 881.054 ;
(2) consolidate the group, club, or class with another group, club, or class; or
(3) discontinue the group, club, or class.
(c) Not later than six months after a statewide mutual assessment company notifies the members of the company under Subsection (a)(2), the company shall increase the membership to at least the number required by Section 881.054 . If the membership is not increased to at least that number, the commissioner shall take steps to liquidate the company under Subchapter L , Chapter 887 .
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.