1. (a) Except as provided by Section 2551.202, a title insurance company shall deposit and maintain in the state treasury, or other depository in this state named by the company and approved by the department, either:

   1. (1) cash; or
   2. (2) securities described by Section 2551.151.

2. (b) A title insurance company's deposit under this section must be in an amount equal to the lesser of:

   1. (1) one-fourth of the authorized capital of the company; or
   2. (2) $100,000.
3. (c) A deposit under this section is for the benefit of all policyholders.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.