reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 829 - Conversion of Reciprocal or Interinsurance Exchange to Stock Company Through Creation of a Mutual Holding Company › Subchapter C. Plan Adoption and Approval › Section 829.106. Approval of Plan by Commissioner

Sec. 829.106.  APPROVAL OF PLAN BY COMMISSIONER.  (a)  The commissioner shall approve a conversion plan if the commissioner determines that:
(1)  the plan complies with this chapter;
(2)  the plan's method of allocating stock subscription rights, stock transfers, or other value, if any, is fair and equitable; and
(3)  the resulting company would satisfy the requirements applicable to a domestic stock insurance company for a certificate of authority on the date of the determination.
(b)  Except as otherwise provided by this section, the commissioner shall approve or disapprove a conversion plan not later than the 90th day after the first day on which all the documents required under Section 829.103 are filed with the commissioner.
(c)  The commissioner may extend the time for decision by an additional 30 days on written notice to the converting exchange.  Except as provided under Subsection (e) or (f), the commissioner may not extend the time for decision beyond that 30-day period.
(d)  The commissioner shall immediately give written notice to the converting exchange of the commissioner's decision and, if the commissioner disapproves the plan, a detailed statement of the reasons for the disapproval.
(e)  The commissioner may retain, at the converting exchange's expense, a qualified expert who is not a member of the commissioner's staff to assist the commissioner in reviewing whether the conversion plan meets the requirements for approval by the commissioner or the value of the distribution of surplus of the resulting company to the officers and directors of the converting exchange, if any.  If the commissioner retains a qualified expert under this subsection, the commissioner may extend the period for decision by an additional 90 days beyond the initial 90-day period specified in Subsection (b).
(f)  If the conversion plan contemplates a public offering of debt or equity registered under the federal Securities Act of 1933 (15 U.S.C. Section 77a et seq.), or a similar law of a foreign jurisdiction, the commissioner may extend the period of time to approve the conversion plan by an additional 180 days beyond the initial 90-day period specified in Subsection (b).
(g)  After giving written notice to the converting exchange, the commissioner may hold a hearing on whether the conversion plan complies with this chapter.  The converting exchange has the right to appear at the hearing.  Other interested persons have the right to attend the hearing and comment on the conversion plan.  Notice of the hearing may be made through publication in the Texas Register in accordance with Section 829.104(b).
Added by Acts 2007, 80th Leg., R.S., Ch. 412 (S.B. 1056), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 829 - Conversion of Reciprocal or Interinsurance Exchange to Stock Company Through Creation of a Mutual Holding Company › Subchapter C. Plan Adoption and Approval › Section 829.107. Approval of Plan by Eligible Members

Sec. 829.107.  APPROVAL OF PLAN BY ELIGIBLE MEMBERS.  (a)  After notice that complies with this chapter, the converting exchange may convene a meeting to consider the conversion plan, and any eligible member entitled to vote on the proposed conversion plan may vote in person or by proxy at the meeting.  Except as otherwise provided in the bylaws of the converting exchange, each eligible member may cast one vote.
(b)  Adoption of the conversion plan requires the affirmative vote of at least two-thirds of the votes cast by eligible members.
Added by Acts 2007, 80th Leg., R.S., Ch. 412 (S.B. 1056), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 829 - Conversion of Reciprocal or Interinsurance Exchange to Stock Company Through Creation of a Mutual Holding Company › Subchapter C. Plan Adoption and Approval › Section 829.108. Filing of Minutes, Articles of Incorporation, and Bylaws; Effective Date of Conversion

Sec. 829.108.  FILING OF MINUTES, ARTICLES OF INCORPORATION, AND BYLAWS; EFFECTIVE DATE OF CONVERSION.  (a)  The converting exchange shall file with the commissioner:
(1)  the minutes of the meeting at which the plan was approved; and
(2)  the articles of incorporation and bylaws of the resulting company and the mutual holding company.
(b)  The converting exchange shall make the filing required by Subsection (a) not later than the 30th day after the later of:
(1)  the date on which the eligible members approve the conversion plan; or
(2)  the date on which the commissioner approves the conversion plan.
(c)  The conversion plan approved by the commissioner takes effect on the date specified in the articles of incorporation of the resulting company and the mutual holding company.
Added by Acts 2007, 80th Leg., R.S., Ch. 412 (S.B. 1056), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 829 - Conversion of Reciprocal or Interinsurance Exchange to Stock Company Through Creation of a Mutual Holding Company › Subchapter D. Effect of Plan; Rights of Members › Section 829.151. Corporate Existence

Sec. 829.151.  CORPORATE EXISTENCE.  (a)  On the effective date:
(1)  the legal existence of the converting exchange continues in the resulting company;
(2)  all assets, rights, franchises, and interests of the converting exchange in and to property and any accompanying thing in action are vested in the resulting company without a deed or transfer;
(3)  the resulting company assumes all the obligations and liabilities of the converting exchange; and
(4)  the power of attorney or other appropriate authorization granting the attorney in fact the authority to act for the subscribers of the converting exchange is terminated.
(b)  Except as otherwise specified by the conversion plan:
(1)  the directors and officers of the converting exchange serving on the effective date serve as directors and officers of the resulting company until new directors and officers are elected under the articles of incorporation and bylaws of the resulting company; and
(2)  the directors of the converting exchange serving on the effective date serve as directors of the mutual holding company until new directors are elected under the articles of incorporation and bylaws of the mutual holding company.
Added by Acts 2007, 80th Leg., R.S., Ch. 412 (S.B. 1056), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 829 - Conversion of Reciprocal or Interinsurance Exchange to Stock Company Through Creation of a Mutual Holding Company › Subchapter D. Effect of Plan; Rights of Members › Section 829.152. Membership Interests

Sec. 829.152.  MEMBERSHIP INTERESTS.  (a)  The membership interests of the policyholders of the resulting company become membership interests in the mutual holding company.  Members of the converting exchange become members of the mutual holding company in accordance with the articles of incorporation and bylaws of the mutual holding company.
(b)  A membership interest in a mutual holding company does not constitute a security as defined by Section 4001.068, Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 412 (S.B. 1056), Sec. 1, eff. June 15, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.32, eff. January 1, 2022.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 829 - Conversion of Reciprocal or Interinsurance Exchange to Stock Company Through Creation of a Mutual Holding Company › Subchapter D. Effect of Plan; Rights of Members › Section 829.153. Rights of Members Whose Policies Are Issued After Adoption of Conversion Plan but Before Effective Date

Sec. 829.153.  RIGHTS OF MEMBERS WHOSE POLICIES ARE ISSUED AFTER ADOPTION OF CONVERSION PLAN BUT BEFORE EFFECTIVE DATE.  (a)  On issuance of a policy after a conversion plan has been adopted by the board of directors but before the effective date of the conversion plan, the converting exchange shall send to each member to whom a policy is issued a written notice regarding the conversion plan.
(b)  Except as provided by Subsection (c), each member insured under a property or casualty insurance policy is entitled to notice under Subsection (a) and shall be advised in a clear and conspicuous manner of the member's right to:
(1)  cancel the policy; and
(2)  receive a pro rata refund of unearned premiums.
(c)  A member who has made or filed a claim under the insurance policy is not entitled to a refund under Subsection (b).  A member who has exercised a right provided by Subsection (b) may not make or file a claim under the insurance policy.
Added by Acts 2007, 80th Leg., R.S., Ch. 412 (S.B. 1056), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 829 - Conversion of Reciprocal or Interinsurance Exchange to Stock Company Through Creation of a Mutual Holding Company › Subchapter D. Effect of Plan; Rights of Members › Section 829.154. Effect of Conversion on Policies; Subscriber Accounts

Sec. 829.154.  EFFECT OF CONVERSION ON POLICIES; SUBSCRIBER ACCOUNTS.  (a)  Each policy in effect on the effective date remains in effect under the terms of that policy, except that the following rights, to the extent they existed in the converting exchange in favor of policyholders or members, are extinguished on the effective date:
(1)  any membership and voting rights;
(2)  except as provided by Subsection (b) or in the conversion plan approved by the commissioner, a right to share in the surplus or profits of the converting exchange; and
(3)  any assessment provisions.
(b)  The holder of a participating policy in effect on the effective date of the conversion continues to have a right to receive dividends as provided by the participating policy.
(c)  On the renewal date of a participating policy, the resulting company may issue to the insured a nonparticipating policy as a substitute for the participating policy.
(d)  All the costs and expenses connected with a conversion plan shall be paid or reimbursed by the converting exchange or the resulting company.
(e)  If a converting exchange maintains subscriber accounts as surplus, the subscriber accounts shall continue as surplus in the resulting company, unless otherwise provided in a conversion plan approved by the commissioner.  Subject to Subsection (f), the balances of the subscriber accounts are payable to the members to the extent and in the manner as is provided in the conversion plan.
(f)  The board of directors of the resulting company may reduce the balances of the subscriber accounts without payment to members of the mutual holding company who were members of the converting exchange if the board of directors of the resulting company determines in the board's discretion that the amounts are necessary to support the operations of the resulting company.  The board of directors of the resulting company may not, without the approval of the commissioner, reduce the balance of a subscriber account under this subsection before the third anniversary of the effective date.
Added by Acts 2007, 80th Leg., R.S., Ch. 412 (S.B. 1056), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 830 - Own Risk and Solvency Assessment › Section 830.001. Applicability and Purpose

Sec. 830.001.  APPLICABILITY AND PURPOSE.  (a)  This chapter applies to each domestic insurer unless exempt under Section 830.006.
(b)  The purpose of this chapter is to provide the requirements for maintaining a risk management framework and completing an own risk and solvency assessment and to provide guidance and instructions for filing an own risk and solvency assessment summary report with the commissioner.
(c)  The own risk and solvency assessment summary report will contain confidential and sensitive information related to an insurer or insurance group's identification of risks material and relevant to the insurer or insurance group filing the report.  This information will include proprietary and trade secret information that has the potential for harm and competitive disadvantage to the insurer or insurance group if the information is made public.  The summary report is a confidential document filed with the commissioner, and the commissioner may share the summary report only as stated in this chapter in order to assist the commissioner in the performance of the commissioner's duties.  An own risk and solvency assessment summary report is not subject to public disclosure in any event.
Added by Acts 2015, 84th Leg., R.S., Ch. 39 (S.B. 655), Sec. 1, eff. May 19, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 830 - Own Risk and Solvency Assessment › Section 830.002. Definitions

Sec. 830.002.  DEFINITIONS.  In this chapter:
(1)  "Guidance manual" means the version of the Own Risk and Solvency Assessment Guidance Manual developed and adopted by the National Association of Insurance Commissioners that is in effect at the time a summary report is provided.  A change in the guidance manual becomes effective on the January 1 following the calendar year in which the changes are adopted by the National Association of Insurance Commissioners.
(2)  "Insurance group" means the insurers and affiliates included within an insurance holding company system as described by Section 823.006.
(3)  "Insurer" has the meaning assigned by Section 823.002(6).
(4)  "Own risk and solvency assessment" means a confidential internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or insurance group, of the material and relevant risks associated with the insurer or insurance group's current business plan and the sufficiency of capital resources to support those risks.
(5)  "Summary report" means a confidential, high-level summary of an insurer's or insurance group's own risk and solvency assessment.
Added by Acts 2015, 84th Leg., R.S., Ch. 39 (S.B. 655), Sec. 1, eff. May 19, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 830 - Own Risk and Solvency Assessment › Section 830.003. Risk Management Framework

Sec. 830.003.  RISK MANAGEMENT FRAMEWORK.  An insurer shall maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on the insurer's material and relevant risks.  This requirement may be satisfied if the insurance group of which the insurer is a member maintains a risk management framework applicable to the operations of the insurer.
Added by Acts 2015, 84th Leg., R.S., Ch. 39 (S.B. 655), Sec. 1, eff. May 19, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 830 - Own Risk and Solvency Assessment › Section 830.004. Own Risk and Solvency Assessment Requirement

Sec. 830.004.  OWN RISK AND SOLVENCY ASSESSMENT REQUIREMENT.  (a)  Subject to Section 830.006, an insurer, or the insurance group of which the insurer is a member, shall regularly conduct, consistent with a process comparable to the guidance manual, an own risk and solvency assessment, appropriate to the nature, scale, and complexity of the insurer or insurance group, of the material and relevant risks associated with the insurer's or insurance group's current business plan and the sufficiency of capital resources to support those risks.
(b)  The insurer, or the insurance group of which the insurer is a member, shall conduct the own risk and solvency assessment described by Subsection (a):
(1)  annually; and
(2)  at any other time there are significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member.
Added by Acts 2015, 84th Leg., R.S., Ch. 39 (S.B. 655), Sec. 1, eff. May 19, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 830 - Own Risk and Solvency Assessment › Section 830.005. Summary Report Required

Sec. 830.005.  SUMMARY REPORT REQUIRED.  (a)  On the commissioner's request, an insurer shall submit to the commissioner a summary report or a combination of reports that together contain the information described in the guidance manual.  The commissioner may not make a request under this subsection more than once each year.
(b)  Without regard to whether the commissioner has made a request under Subsection (a), if the insurer is a member of an insurance group, the insurer shall submit to the commissioner the reports required by Subsection (a) if the commissioner is the lead state commissioner of the insurance group.
(c)  In determining the lead state commissioner for purposes of this section, the commissioner shall consider the procedures adopted by the National Association of Insurance Commissioners.
(d)  The reports must include a signature of the insurer's or insurance group's chief risk officer or other executive responsible for the oversight of the insurer's enterprise risk management process attesting to the best of the officer's or executive's belief and knowledge that:
(1)  the insurer applies the enterprise risk management process described in the summary report; and
(2)  a copy of the report has been provided to the insurer's board of directors or the appropriate committee of the board of directors.
(e)  An insurer may comply with Subsection (a) or (b) by providing the most recent and substantially similar report that the insurer or another member of an insurance group of which the insurer is a member provided to the commissioner of another state or to a supervisor or regulator of a foreign jurisdiction, if that report provides information that is comparable to the information described in the guidance manual.  A report in a language other than English must be accompanied by a translation of that report into the English language.
Added by Acts 2015, 84th Leg., R.S., Ch. 39 (S.B. 655), Sec. 1, eff. May 19, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 830 - Own Risk and Solvency Assessment › Section 830.007. Contents of Summary Report

Sec. 830.007.  CONTENTS OF SUMMARY REPORT.  (a)  An insurer shall prepare a summary report in accordance with the guidance manual and subject to the requirements of Subsection (b).  An insurer shall maintain documentation and supporting information and shall make the documentation and supporting information available on examination or on request of the commissioner.
(b)  When reviewing the summary report or making requests for additional information, the department shall use procedures similar to the procedures currently used in the analysis and examination of multistate or global insurers and insurance groups.
Added by Acts 2015, 84th Leg., R.S., Ch. 39 (S.B. 655), Sec. 1, eff. May 19, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 830 - Own Risk and Solvency Assessment › Section 830.009. Agreement Concerning Confidential and Privileged Information

Sec. 830.009.  AGREEMENT CONCERNING CONFIDENTIAL AND PRIVILEGED INFORMATION.  (a)  The commissioner shall enter into a written agreement with the National Association of Insurance Commissioners or a third-party consultant that governs the sharing and use of information provided under this chapter.  The agreement must comply with and contain all the requirements listed in this section.
(b)  The agreement must specify procedures and protocols regarding the confidentiality and security of information shared with the National Association of Insurance Commissioners or third-party consultant under this chapter, including procedures and protocols for sharing by the National Association of Insurance Commissioners with other state regulators from states in which the insurance group has domiciled insurers.
(c)  The agreement must provide that the recipient:
(1)  agrees in writing to maintain the confidential and privileged status of the own risk and solvency assessment-related documents, materials, or other information; and
(2)  has verified in writing the legal authority to maintain the confidential and privileged status of the information.
(d)  The agreement must specify that ownership of information shared with the National Association of Insurance Commissioners or third-party consultant under this chapter remains with the commissioner and that the National Association of Insurance Commissioners' or third-party consultant's use of the information is subject to the direction of the commissioner.
(e)  The agreement must prohibit the National Association of Insurance Commissioners or third-party consultant from storing the information shared under this chapter in a permanent database after the underlying analysis is completed.
(f)  The agreement must require prompt notice to be given to an insurer whose confidential information in the possession of the National Association of Insurance Commissioners or third-party consultant under this chapter is subject to a request or subpoena to the National Association of Insurance Commissioners or third-party consultant for disclosure or production.
(g)  The agreement must require the National Association of Insurance Commissioners or third-party consultant to consent to intervention by an insurer in any judicial or administrative action in which the National Association of Insurance Commissioners or third-party consultant may be required to disclose confidential information about the insurer shared with the National Association of Insurance Commissioners or third-party consultant under this chapter.
(h)  The agreement must provide for the insurer's written consent in the case of an agreement involving a third-party consultant.
Added by Acts 2015, 84th Leg., R.S., Ch. 39 (S.B. 655), Sec. 1, eff. May 19, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 830 - Own Risk and Solvency Assessment › Section 830.010. Authority of Commissioner Not Affected

Sec. 830.010.  AUTHORITY OF COMMISSIONER NOT AFFECTED.  The commissioner's sharing of information and documents under this chapter does not constitute a delegation of regulatory authority or rulemaking, and the commissioner is solely responsible for the administration, execution, and enforcement of the provisions of this chapter.
Added by Acts 2015, 84th Leg., R.S., Ch. 39 (S.B. 655), Sec. 1, eff. May 19, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 830 - Own Risk and Solvency Assessment › Section 830.011. Privilege and Confidentiality Not Waived

Sec. 830.011.  PRIVILEGE AND CONFIDENTIALITY NOT WAIVED.  A waiver of an applicable privilege or claim of confidentiality in a document, proprietary and trade-secret materials, or other own risk and solvency assessment-related information does not occur as a result of disclosure of the document, materials, or other information to the commissioner under this chapter or as a result of sharing as authorized by this chapter.
Added by Acts 2015, 84th Leg., R.S., Ch. 39 (S.B. 655), Sec. 1, eff. May 19, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 830 - Own Risk and Solvency Assessment › Section 830.012. Administrative Penalty

Sec. 830.012.  ADMINISTRATIVE PENALTY.  (a)  An insurer that, without good cause, fails to timely file the summary report as required by this chapter commits a violation subject to an administrative penalty under Chapter 84.
(b)  Each day the violation continues is a separate violation for purposes of this section.
(c)  The commissioner may reduce the amount of the penalty assessed under this section if the insurer demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer.
Added by Acts 2015, 84th Leg., R.S., Ch. 39 (S.B. 655), Sec. 1, eff. May 19, 2015.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0001. Applicability and Purpose

Sec. 831.0001.  APPLICABILITY AND PURPOSE.  (a)  The purpose of this chapter is to promote the public interest by:
(1)  requiring annual disclosure of an insurer or insurance group's corporate governance structure, policies, and practices to permit the commissioner to gain and maintain an understanding of the insurer's corporate governance framework; and
(2)  providing for the confidential treatment of the corporate governance annual disclosure and related information as the disclosure and related information will contain confidential and sensitive information related to an insurer or insurance group's internal operations and proprietary and trade-secret information which, if made public, could potentially cause the insurer or insurance group competitive harm or disadvantage.
(b)  This chapter may not be construed to prescribe or impose corporate governance standards and internal procedures beyond that which is required under applicable state corporate law.
(c)  Notwithstanding Subsection (b), this chapter may not be construed to limit the commissioner's authority, or the rights or obligations of third parties, under Chapter 401.
(d)  This chapter applies to each insurer domiciled in this state, except that this chapter does not apply to a domestic insurer that is authorized, admitted, or eligible to engage in the business of insurance only in this state. For the purposes of this chapter, an insurer is not considered to be authorized, admitted, or eligible to engage in the business of insurance only in this state if the insurer is a member of an insurance group that writes or assumes insurance in any manner in another state.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0002. Definitions

Sec. 831.0002.  DEFINITIONS.  In this chapter:
(1)  "Disclosure" means the confidential corporate governance annual disclosure filed by the insurer or insurance group in accordance with the requirements of this chapter.
(2)  "Insurance group" means the insurers and affiliates included within an insurance holding company system as described by Section 823.006.
(3)  "Insurer" has the meaning assigned by Section 823.002.  The term includes a health maintenance organization authorized to engage in business under Chapter 843.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0003. Disclosure Required

Sec. 831.0003.  DISCLOSURE REQUIRED.  (a)  Except as provided by Subsection (b), an insurer, or the insurance group of which the insurer is a member, shall, not later than June 1 of each calendar year, submit to the commissioner a corporate governance annual disclosure that contains the information described by Section 831.0008(c).
(b)  Notwithstanding any request from the commissioner under Subsection (d), an insurer that is a member of an insurance group shall submit the report required by Subsection (a) to the commissioner of the lead state for the insurance group, in accordance with the laws of the lead state, as determined by the procedures adopted by the National Association of Insurance Commissioners.
(c)  The disclosure must include a signature of the insurer or insurance group's chief executive officer or corporate secretary attesting to the best of that individual's belief and knowledge that the insurer has implemented the corporate governance practices described in the disclosure and that a copy of the disclosure has been provided to the insurer's board of directors or the appropriate committee of the insurer's board of directors.
(d)  An insurer not otherwise required to submit a disclosure under this chapter shall submit a disclosure on the commissioner's request.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0004. Level of Reporting

Sec. 831.0004.  LEVEL OF REPORTING.  (a)  For purposes of completing the disclosure under Section 831.0003, an insurer or insurance group may provide information regarding corporate governance at the ultimate controlling parent level, an intermediate holding company level, or the individual legal entity level, depending on how the insurer or insurance group has structured the insurer's or insurance group's system of corporate governance.
(b)  An insurer or insurance group is encouraged to make the disclosure:
(1)  at the level at which the insurer's or insurance group's risk appetite is determined;
(2)  at the level at which the earnings, capital, liquidity, operations, and reputation of the insurer are overseen collectively and at which the supervision of those factors are coordinated and exercised; or
(3)  at the level at which legal liability for failure of general corporate governance duties would be placed.
(c)  If an insurer or insurance group determines the level of reporting based on the criteria described by Subsection (b), the insurer or insurance group shall indicate which of the three criteria was used to determine the level of reporting and explain any subsequent changes in level of reporting.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0005. Review of Disclosure; Request for Additional Information

Sec. 831.0005.  REVIEW OF DISCLOSURE; REQUEST FOR ADDITIONAL INFORMATION.  The review of the disclosure and any additional requests for information shall be made through the lead state as determined by the procedures adopted by the National Association of Insurance Commissioners described by Section 831.0003(b).
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0006. Substantially Similar Information

Sec. 831.0006.  SUBSTANTIALLY SIMILAR INFORMATION.  An insurer that provides information substantially similar to the information required by this chapter in other documents provided to the commissioner, including proxy statements filed in conjunction with Form B requirements or other state or federal filings provided to the department, is not required to duplicate that information in the disclosure but is required only to cross-reference the document in which the information is included.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0007. Part of Examination Process

Sec. 831.0007.  PART OF EXAMINATION PROCESS.  The disclosure and any additional information requested by the commissioner and provided to the department as described by this chapter is considered part of the process of examination of insurers under this code, including Chapter 401.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0008. Contents of Disclosure

Sec. 831.0008.  CONTENTS OF DISCLOSURE.  (a)  An insurer or insurance group has discretion over the responses to the disclosure inquiries, provided the disclosure must contain the material information necessary to permit the commissioner to gain an understanding of the insurer's or insurance group's corporate governance structure, policies, and practices.
(b)  The commissioner may request additional information that the commissioner considers material and necessary to provide the commissioner with a clear understanding of:
(1)  the corporate governance policies; and
(2)  the reporting, information system, or controls implementing those policies.
(c)  Notwithstanding Subsections (a) and (b), the disclosure shall be prepared consistent with rules adopted by the commissioner.  Documentation and supporting information must be maintained and made available on examination or on request of the commissioner.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0010. Authority of Commissioner Not Affected

Sec. 831.0010.  AUTHORITY OF COMMISSIONER NOT AFFECTED.  The sharing of documents, materials, or other information by the commissioner under this chapter does not constitute a delegation of regulatory authority or rulemaking, and the commissioner is solely responsible for the administration, execution, and enforcement of the provisions of this chapter.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0011. Privilege and Confidentiality Not Waived

Sec. 831.0011.  PRIVILEGE AND CONFIDENTIALITY NOT WAIVED.  A waiver of an applicable privilege or claim of confidentiality in documents, materials, or other information, including proprietary and trade-secret materials, does not occur as a result of disclosure of the document, materials, or information to the commissioner under this chapter or as a result of sharing as authorized by this chapter.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0013. Administrative Penalty

Sec. 831.0013.  ADMINISTRATIVE PENALTY.  (a)  An insurer that, without good cause, fails to timely file the disclosure as required by this chapter commits a violation subject to an administrative penalty under Chapter 84.
(b)  Each day the violation continues is a separate violation for purposes of this section.
(c)  The commissioner may reduce the amount of the penalty assessed under this section if the insurer demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 831 - Corporate Governance Annual Disclosure › Section 831.0014. Rules

Sec. 831.0014.  RULES.  (a)  The commissioner shall adopt rules as necessary to enforce this chapter.
(b)  A rule adopted under Subsection (a) is not subject to Section 2001.0045, Government Code.
Added by Acts 2019, 86th Leg., R.S., Ch. 1170 (H.B. 3306), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle C - Life, Health, and Accident Insurers and Related Entities › Chapter 841 - Life, Health, or Accident Insurance Companies › Subchapter A. General Provisions › Section 841.001. Definitions

Sec. 841.001.  DEFINITIONS.
(1)  "Accident insurance company" means a corporation authorized under a charter to engage in business involving the payment of money or another thing of value in the event of an injury to or the disablement or death of an individual as a result of travel or a general accident by land or water.
(2)  "Alien company" means a life, accident, or health insurance company organized under the laws of a foreign country.
(3)  "Beneficiary" is the person to whom an insurance policy is payable.
(4)  "Domestic insurance company," in this chapter and another law described by Section 841.002, means an insurance company organized under the laws of this state as:
(A)  a life insurance company;
(B)  an accident insurance company;
(C)  a life and accident insurance company;
(D)  a health and accident insurance company;  or
(E)  a life, health, and accident insurance company.
(5)  "Foreign company" means a life, accident, or health insurance company organized under the laws of another state.
(6)  "Health insurance company" means a corporation authorized under a charter to engage in business involving the payment of money or another thing of value in the event of loss resulting from disability incurred as a result of sickness or ill health.
(7)  "Home office," with respect to an insurance company, means the principal office of the company in the state or country under whose laws the company is organized.
(8)  "Insurance company" and "company" include all corporations engaged as a principal in the business of life, accident, or health insurance.
(9)  "Life insurance company" means a corporation authorized under a charter to engage in business involving the payment of money or another thing of value conditioned on the continuance or cessation of human life or involving an insurance, guaranty, or contract for the payment of an endowment or annuity.
(10)  "Policyholder" and "insured" mean the individual on whose life an insurance policy is effected.
(11)  "Profits," with respect to an insurance company, means the portion of the company's funds that are not:
(A)  required for the payment of losses and expenses;  or
(B)  set aside for any other purpose required by law.
(12)  "United States branch" means:
(A)  the business unit through which business is transacted within the United States by an alien company;
(B)  the assets and liabilities of the company within the United States pertaining to the business;
(C)  the management powers pertaining to the business and to the assets and liabilities;  or
(D)  any combination of the items described by Paragraphs (A)-(C).
(13)  The definitions of "company" and "insurance company" apply to this chapter and another law described by Section 841.002 unless a different meaning is plainly required by the context in which the term appears.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle C - Life, Health, and Accident Insurers and Related Entities › Chapter 841 - Life, Health, or Accident Insurance Companies › Subchapter A. General Provisions › Section 841.002. Applicability of Chapter and Other Law

Sec. 841.002.  APPLICABILITY OF CHAPTER AND OTHER LAW.  Except as otherwise expressly provided by this code, each insurance company incorporated or engaging in business in this state as a life insurance company, an accident insurance company, a life and accident insurance company, a health and accident insurance company, or a life, health, and accident insurance company is subject to:
(1)  this chapter;
(2)  Chapter 3;
(3)  Chapters 425 and 493;
(4)  Title 7;
(5)  Sections 1202.051, 1204.151, 1204.153, and 1204.154;
(6)  Subchapter A, Chapter 1202, Subchapters A and F, Chapter 1204, Subchapter A, Chapter 1273, Subchapters A, B, and D, Chapter 1355, and Subchapter A, Chapter 1366;
(7)  Subchapter A, Chapter 1507;
(8)  Chapters 1203, 1210, 1251-1254, 1301, 1351, 1354, 1359, 1364, 1368, 1505, 1651, 1652, and 1701; and
(9)  Chapter 177, Local Government Code.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.018, eff. April 1, 2009.
Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.03, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle C - Life, Health, and Accident Insurers and Related Entities › Chapter 841 - Life, Health, or Accident Insurance Companies › Subchapter A. General Provisions › Section 841.003. Applicability of Law Governing Corporations

Sec. 841.003.  APPLICABILITY OF LAW GOVERNING CORPORATIONS.  An insurance company operating under this chapter is subject to the Texas Business Corporation Act, the Texas Miscellaneous Corporation Laws Act (Article 1302-1.01 et seq., Vernon's Texas Civil Statutes), and any other law of this state that governs corporations in general to the extent those laws are not inconsistent with this chapter or another law described by Section 841.002.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle C - Life, Health, and Accident Insurers and Related Entities › Chapter 841 - Life, Health, or Accident Insurance Companies › Subchapter A. General Provisions › Section 841.004. Net Assets Defined; Rules

Sec. 841.004.  NET ASSETS DEFINED;  RULES.  (a)  A company's "net assets" consist of the company's funds that are available for the payment of a company's obligations in this state, including:
(1)  uncollected premiums that are not more than three months past due and deferred premiums on policies actually in force, after the deduction of:
(A)  all unpaid losses and claims;
(B)  all claims for losses;  and
(C)  all other debts, exclusive of capital stock;  and
(2)  if the total value of the equipment exceeds $2,000, the value of all electronic machines that comprise a data processing system or systems and of all other office equipment, furniture, machines, and labor-saving devices purchased for and used in connection with the business of the insurance company to the extent that the total actual cash market value of those assets is less than 10 percent of the other admitted assets of the company.
(b)  The commissioner may adopt rules defining electronic machines and systems, office equipment, furniture, machines, and labor-saving devices described by Subsection (a) and stating the maximum period for which each class of equipment may be amortized.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle C - Life, Health, and Accident Insurers and Related Entities › Chapter 841 - Life, Health, or Accident Insurance Companies › Subchapter B. Formation and Structure of Domestic Companies › Section 841.051. Formation of Company

Sec. 841.051.  FORMATION OF COMPANY.  (a)  Three or more residents of this state may form:
(1)  a life insurance company;
(2)  an accident insurance company;
(3)  a life and accident insurance company;
(4)  a health and accident insurance company;  or
(5)  a life, health, and accident insurance company.
(b)  To form a domestic insurance company:
(1)  each incorporator must sign and acknowledge the articles of incorporation of the company;  and
(2)  the incorporators must file the articles of incorporation with the department.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle C - Life, Health, and Accident Insurers and Related Entities › Chapter 841 - Life, Health, or Accident Insurance Companies › Subchapter B. Formation and Structure of Domestic Companies › Section 841.052. Articles of Incorporation

Sec. 841.052.  ARTICLES OF INCORPORATION.  (a)  Articles of incorporation of a proposed domestic insurance company must state:
(1)  the name of the company;
(2)  the location of the company's home office;
(3)  the kinds of insurance business in which the company proposes to engage;
(4)  the name and place of residence of each incorporator;
(5)  the amount of the company's capital stock;
(6)  the number of shares of the company's capital stock;
(7)  the amount of the company's surplus;  and
(8)  the period of the company's duration, which may be perpetual.
(b)  The incorporators of a domestic insurance company may include in the articles of incorporation other provisions that are not inconsistent with law.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle C - Life, Health, and Accident Insurers and Related Entities › Chapter 841 - Life, Health, or Accident Insurance Companies › Subchapter B. Formation and Structure of Domestic Companies › Section 841.053. Company Name

Sec. 841.053.  COMPANY NAME.  (a)  The name of a domestic insurance company must contain the words "Insurance Company."
(b)  A domestic insurance company's name may not be so similar to the name of another domestic insurance company as to likely mislead the public.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle C - Life, Health, and Accident Insurers and Related Entities › Chapter 841 - Life, Health, or Accident Insurance Companies › Subchapter B. Formation and Structure of Domestic Companies › Section 841.054. Capital Stock and Surplus Requirements

Sec. 841.054.  CAPITAL STOCK AND SURPLUS REQUIREMENTS.  (a)  A domestic insurance company must have capital stock in an amount of at least $700,000 and surplus in an amount of at least $700,000.
(b)  All of the capital stock required by Subsection (a) must be fully subscribed and paid up and delivered to the incorporators before the articles of incorporation are filed.
(c)  At the time of incorporation, the required capital and surplus shall consist only of:
(1)  United States currency;
(2)  bonds of the United States, this state, or a county or municipality of this state; or
(3)  government insured mortgage loans that are authorized by this chapter or Chapter 425, with not more than 50 percent of the required capital invested in first mortgage real property loans.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2E.019, eff. April 1, 2009.