Unless the association increases the association's capital and surplus to the minimum capital and surplus required for the organization of a stock legal reserve life insurance company under Chapter 841, an association that converts to a stock legal reserve life insurance company under this subchapter may not:

1. (1) operate in a territory as to which the association was not authorized under the converted association's previous charter or articles of association;
2. (2) insure a life for more than $5,000 in event of death; or
3. (3) declare or pay cash dividends.

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