# Tex. Insurance Code § 964.054: RESERVES AND ACCOUNTING BASIS

> Texas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.054

## Section

- **Citation:** Tex. Insurance Code § 964.054
- **Heading:** RESERVES AND ACCOUNTING BASIS
- **Jurisdiction:** Texas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TX Code / Code in / Chapter 964 / Section 964.054

## Text

(a) A captive insurance company shall maintain reserves in an amount stated in the aggregate to provide for the payment of all losses or claims for which the captive insurance company may be liable and that are:

(1) incurred on or before the date of the annual report under Section 964.060, whether reported or unreported; and

(2) unpaid as of the date of the annual report under Section 964.060.

(b) In addition to the reserves required by Subsection (a), a captive insurance company shall maintain reserves in an amount estimated to provide for the expenses of adjustment or settlement of the losses or claims described by Subsection (a).

(c) The captive insurance company shall use generally accepted accounting principles as an accounting basis except that a captive insurance company that is required to hold a certificate of authority under another jurisdiction's insurance laws shall use statutory accounting principles.

## Nearby sections

- [Tex. Insurance Code § 964.001 § 964.001. DEFINITIONS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.001.md)
- [Tex. Insurance Code § 964.002 § 964.002. APPLICABILITY OF OTHER LAWS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.002.md)
- [Tex. Insurance Code § 964.051 § 964.051. AUTHORITY TO WRITE DIRECT BUSINESS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.051.md)
- [Tex. Insurance Code § 964.052 § 964.052. REINSURANCE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.052.md)
- [Tex. Insurance Code § 964.053 § 964.053. FORMATION.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.053.md)
- [Tex. Insurance Code § 964.054 § 964.054. RESERVES AND ACCOUNTING BASIS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.054.md)
- [Tex. Insurance Code § 964.055 § 964.055. CERTIFICATE OF AUTHORITY REQUIRED.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.055.md)
- [Tex. Insurance Code § 964.056 § 964.056. CAPITAL AND SURPLUS OR EQUIVALENT REQUIREMENTS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.056.md)
- [Tex. Insurance Code § 964.057 § 964.057. APPLICATION FOR CERTIFICATE OF AUTHORITY.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.057.md)
- [Tex. Insurance Code § 964.058 § 964.058. EXAMINATION BY COMMISSIONER.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.058.md)
- [Tex. Insurance Code § 964.059 § 964.059. ACTION ON APPLICATION.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.059.md)
- [Tex. Insurance Code § 964.060 § 964.060. ANNUAL REPORT.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.060.md)
- [Tex. Insurance Code § 964.061 § 964.061. INVESTMENTS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.061.md)
- [Tex. Insurance Code § 964.062 § 964.062. AMENDMENTS TO CERTIFICATE OF FORMATION OR GOVERNING DOCUMENT.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.062.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_Cin_C964_S964.054. Check the current official text before relying on it. Not legal advice.