28 Tex. Admin. Code § 25.32 - Financial Responsibility

(a) Each license application shall be accompanied by a sworn financial statement for each individual, partner or corporation, as applicable, disclosing the applicant's financial condition and reflecting net assets for use in the insurance premium finance business of not less than $25,000. As used here, "net assets" means the total value of assets available for use in the business, less liabilities other than those liabilities secured by assets which are not acceptable for meeting the financial requirements under this section. The financial statement shall also disclose any existing or anticipated lines of credit for the applicant's use in the business or indicate that there are none.

(b) Unacceptable assets include, but are not limited to, goodwill, unpaid stock subscription, lines of credit, property subject to the claim of homestead, and encumbered real or personal property to the extent of the encumbrance. Valuations of accounts receivable shall be adjusted by adequate reserves for unearned charges and bad debts.

(c) Each licensee shall at all times be required to maintain net assets for use in the insurance premium finance business of not less than $25,000 for each location that is licensed.

Notes

28 Tex. Admin. Code § 25.32

The provisions of this §25.32 adopted to be effective May 17, 1995, 20 TexReg 3337.