1. (a) This section applies to:

   1. (1) a life insurance certificate in force on December 31, 1965, to which Section 887.353 does not apply; and
   2. (2) an accident, health, or hospitalization insurance certificate.
2. (b) An association shall deposit in a mortuary fund an amount equal to at least 60 percent of the association's assessments, not including membership fees.

3. (c) An association shall deposit in an expense fund:

   1. (1) membership fees; and
   2. (2) the remaining portion of the assessments not deposited under Subsection (b).
4. (d) This section does not apply to an association operating on an assessment-as-needed basis.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.