Section 846.154 - Cash Reserve Requirements(a) The amount of cash reserves recommended under Section 846.153(c)(2) may not be less than the greater of:(1) 20 percent of the total contributions in the preceding plan year; or(2) 20 percent of the total estimated contributions for the current plan year.(b) Cash reserves required by this section must be:(1) computed with proper actuarial regard for:(A) known claims, paid and outstanding;(B) a history of incurred but not reported claims;(C) claims handling expenses;(E) an estimate for bad debts;(G) a margin for error; and(2) maintained in cash or federally guaranteed obligations of less than five-year maturity that have a fixed or recoverable principal amount or in other investments as the commissioner may authorize by rule.Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. 6/1/2003.