reglab/statecodes huggingface dataset:
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 G. Issuance of Policies › Section 841.303. Entire Contract

Sec. 841.303.  ENTIRE CONTRACT.  Each policy of insurance issued or delivered in this state by any life insurance company engaged in business in this state constitutes the entire contract between the parties, except that if the application is made a part of the contract, the policy and the application constitute the entire contract.
Redesignated from Insurance Code Sec. 1101.003(a) and amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.204(a), eff. Sept. 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 H. Deposit of Securities › Section 841.351. Deposit With Comptroller

Sec. 841.351.  DEPOSIT WITH COMPTROLLER.  (a)  A domestic insurance company may, at its option, deposit with the comptroller either:
(1)  securities in which the company's capital stock is invested;  or
(2)  securities in an amount equal to the amount of the company's capital stock.
(b)  Securities deposited under Subsection (a) must be securities of a class authorized by the laws of this state for investments of a domestic insurance company's capital stock.
(c)  A domestic insurance company may, at its option, withdraw a deposit made under Subsection (a), or any portion of the deposit, after substituting a deposit of securities of a like class and of an amount and value equal to the withdrawn deposit or portion of deposit.
(d)  The commissioner must first approve any securities deposited or being substituted under this section.
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 H. Deposit of Securities › Section 841.352. Issuance of Receipt for Deposit

Sec. 841.352.  ISSUANCE OF RECEIPT FOR DEPOSIT.  When a domestic insurance company deposits securities under this subchapter, the comptroller shall issue to the company a receipt that:
(1)  describes the deposit in a manner that identifies the securities;  and
(2)  states that the securities are held on deposit as capital stock investments of the company.
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 H. Deposit of Securities › Section 841.353. Advertisement of Deposit

Sec. 841.353.  ADVERTISEMENT OF DEPOSIT.  A domestic insurance company that makes a deposit under this subchapter may:
(1)  advertise the fact that a deposit has been made;  or
(2)  print a copy of the receipt for the deposit on any policy the company issues.
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 H. Deposit of Securities › Section 841.354. Access to Deposit

Sec. 841.354.  ACCESS TO DEPOSIT.  In accordance with reasonable rules adopted by the comptroller and the commissioner, the proper officer or agent of a domestic insurance company making a deposit of securities under this subchapter may at a reasonable time:
(1)  examine the deposit;
(2)  detach coupons from the securities;  and
(3)  collect interest on the deposit.
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 H. Deposit of Securities › Section 841.355. Withdrawal of Deposit After Merger, Consolidation, or Total Reinsurance

Sec. 841.355.  WITHDRAWAL OF DEPOSIT AFTER MERGER, CONSOLIDATION, OR TOTAL REINSURANCE.  (a)  When two or more domestic insurance companies that have two or more deposits of securities under this subchapter merge, consolidate, or enter into a total reinsurance contract by which the ceding company is dissolved and its assets and liabilities are acquired or assumed by the surviving company, the new, surviving, or reinsuring insurance company, on approval of the commissioner, may withdraw all of the deposits, except for the deposit of the greatest amount and value.  The new, surviving, or reinsuring insurance company must demonstrate to the commissioner that the company is the owner of the deposited securities before the commissioner approves the withdrawal of those securities.
(b)  In accordance with an order of the commissioner approving a withdrawal of securities under this section, the comptroller shall release, transfer, and deliver the withdrawn securities to their owner.
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 H. Deposit of Securities › Section 841.356. Situs of Deposit for Tax Purposes

Sec. 841.356.  SITUS OF DEPOSIT FOR TAX PURPOSES.  For purposes of state, county, or municipal taxation, the situs of deposited securities is the municipality and county in which the depositing company's home office is located.
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 H. Deposit of Securities › Section 841.357. Maintenance of Deposit

Sec. 841.357.  MAINTENANCE OF DEPOSIT.  A domestic insurance company must maintain a deposit of securities under this subchapter as long as the company has outstanding any liability to a policyholder in this state.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.401. Purpose

Sec. 841.401.  PURPOSE.  The purpose of this subchapter is to authorize the establishment of domestic limited purpose subsidiary life insurance companies to enable those companies to support excess reserves for certain life insurance policies.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.403. Organizational Documents

Sec. 841.403.  ORGANIZATIONAL DOCUMENTS.  (a)  A wholly owned domestic insurer authorized to transact the business of insurance under this chapter or an affiliated company organized or authorized to conduct business under the laws of this state may organize a limited purpose subsidiary life insurance company under this subchapter.
(b)  A limited purpose subsidiary life insurance company may reinsure risks of the organizing company and of an affiliated company.
(c)  A limited purpose subsidiary life insurance company's organizational documents must:
(1)  limit the company's authority to transact the business of insurance to reinsuring only the risks of a ceding insurer;
(2)  provide that the limited purpose subsidiary life insurance company may not otherwise engage in the business of insurance; and
(3)  provide that the limited purpose subsidiary life insurance company must always be wholly owned by a domestic insurer authorized to transact the business of insurance under this chapter or by an affiliated company organized or authorized to do business under the laws of this state.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.404. Certificate of Authority Required

Sec. 841.404.  CERTIFICATE OF AUTHORITY REQUIRED.  A limited purpose subsidiary life insurance company may not engage in the business of reinsurance in this state unless the limited purpose subsidiary life insurance company obtains from the commissioner a certificate of authority under this subchapter.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.405. Application for Certificate of Authority

Sec. 841.405.  APPLICATION FOR CERTIFICATE OF AUTHORITY.  To obtain a charter for a limited purpose subsidiary life insurance company, the incorporators of the company shall pay to the department a charter fee in an amount determined under Chapter 202 and file with the department:
(1)  an application for charter on the form prescribed by, and containing the information prescribed by, the commissioner;
(2)  the company's articles of incorporation;
(3)  an affidavit made by the company's president, vice president, treasurer, or chief financial officer stating that:
(A)  the minimum capital and surplus requirements of this subchapter are satisfied;
(B)  the capital and surplus are the bona fide property of the company;
(C)  the information in the articles of incorporation is true and correct;
(D)  the proposed organization and operation of the limited purpose subsidiary life insurance company comply with all applicable provisions of this subchapter;
(E)  the limited purpose subsidiary life insurance company's investment policy reflects and takes into account the liquidity of assets and the reasonable preservation, administration, and management of those assets with respect to the risks associated with the reinsurance contract; and
(F)  any reinsurance contract and any arrangement for securing the limited purpose subsidiary life insurance company's obligations under the reinsurance contract, including any agreements or other documentation to implement the arrangement;
(4)  a business plan that includes pro forma financial statement projections that demonstrate how the limited purpose subsidiary life insurance company will comply with Section 841.412;
(5)  a copy of any proposed guaranty that demonstrates how compliance with Sections 841.412 and 841.417 will be achieved;
(6)  an opinion of a qualified independent actuary acceptable to the commissioner that the methodology and assumptions used to set and discount reserves make good and sufficient provision for the risk assumed by the limited purpose subsidiary life insurance company, including significant stress tests on key assumptions; and
(7)  any other statement or document required by the commissioner to evaluate the limited purpose subsidiary life insurance company's application for a certificate of authority.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.406. Investment of Certain Surplus by Organizing Company

Sec. 841.406.  INVESTMENT OF CERTAIN SURPLUS BY ORGANIZING COMPANY.  If the company that organizes a limited purpose subsidiary life insurance company is a domestic life insurance company, the organizing company may invest funds from the organizing company's surplus in the limited purpose subsidiary life insurance company.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.407. Officers and Directors

Sec. 841.407.  OFFICERS AND DIRECTORS.  The officers and directors of a company that organizes a limited purpose subsidiary life insurance company may serve as officers and directors of the limited purpose subsidiary life insurance company.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.408. Issuance of Certificate of Authority

Sec. 841.408.  ISSUANCE OF CERTIFICATE OF AUTHORITY.  (a)  The commissioner may issue a certificate of authority to a limited purpose subsidiary life insurance company, authorizing the company to transact reinsurance business in this state as a limited purpose subsidiary life insurance company based on a finding that:
(1)  the company's application meets the criteria contained in this subsection;
(2)  the proposed plan of the limited purpose subsidiary life insurance company provides for viable operation of the company, including a determination by the commissioner that the limited purpose subsidiary life insurance company applicant has sufficiently strong financial support;
(3)  the guaranties meet the requirements of Section 841.417;
(4)  the terms of any reinsurance arrangement, including the reinsurance contract and related transactions, comply with this subchapter and all applicable insurance laws and rules;
(5)  the proposed application and reinsurance arrangement is not hazardous to any ceding insurer; and
(6)  the proposed application and reinsurance contract will always fund authorized investments that comply with Section 841.412, including statutory reserves for life insurance with invested assets at least equal to the amount of reserves required under generally accepted accounting principles.
(b)  In conjunction with the issuance of a certificate of authority under this section, the commissioner may issue an order that includes any provisions, terms, and conditions regarding the organization, licensing, and operation of the limited purpose subsidiary life insurance company that the commissioner deems appropriate and that are not inconsistent with this chapter, including requesting from the company information to monitor the financial strength of guarantors and requiring the periodic reporting and monitoring of assets behind any guaranties issued.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.409. Scope of Certificate of Authority

Sec. 841.409.  SCOPE OF CERTIFICATE OF AUTHORITY.  (a)  A limited purpose subsidiary life insurance company that has been issued a certificate of authority may reinsure only the risks of a ceding insurer.  A limited purpose subsidiary life insurance company may not otherwise engage in the business of insurance.
(b)  A limited purpose subsidiary life insurance company may purchase reinsurance to cede the risks assumed under a reinsurance contract.
(c)  A limited purpose subsidiary life insurance company organized under this subchapter is considered to be licensed to transact the business of reinsurance for the purposes of Section 493.051, but may only reinsure risks of the company's affiliated companies.
(d)  A limited purpose subsidiary life insurance company shall provide the commissioner with notice of any change in the company's business plan required by Section 841.405, including any material change in the methods used to comply with Section 841.413.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.06, 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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.410. Capital and Surplus

Sec. 841.410.  CAPITAL AND SURPLUS.  (a) The commissioner may not issue a certificate of authority to a limited purpose subsidiary life insurance company unless the company possesses and maintains unimpaired paid-in capital and surplus of not less than $10 million.
(b)  A limited purpose subsidiary life insurance company shall comply with the risk-based capital requirements adopted by the commissioner by rule.
(c)  A limited purpose subsidiary life insurance company shall maintain risk-based capital in an amount that is at least equal to 300 percent of the authorized control level of risk-based capital adopted by the commissioner.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.411. Foreclosure on Collateral

Sec. 841.411.  FORECLOSURE ON COLLATERAL.  A limited purpose subsidiary life insurance company shall immediately notify the commissioner of any action by a ceding insurer or any other person to foreclose on, or otherwise take possession of, collateral provided by the limited purpose subsidiary life insurance company to secure an obligation of the company.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.412. Minimum Authorized Investment Requirement After Credit for Reinsurance; Letters of Credit; Guaranties

Sec. 841.412.  MINIMUM AUTHORIZED INVESTMENT REQUIREMENT AFTER CREDIT FOR REINSURANCE; LETTERS OF CREDIT; GUARANTIES.  (a)  A limited purpose subsidiary life insurance company shall hold investments authorized under Subchapters C and D, Chapter 425, exclusive of investments in affiliates, in an amount that at least equals the sum of:
(1)  the minimum capital and surplus requirements of Section 841.410;
(2)  the risk-based capital requirements adopted by the commissioner; and
(3)  reserves calculated using generally accepted accounting principles.
(b)  Subject to compliance with Subsection (a) and notwithstanding Chapter 425, a limited purpose subsidiary life insurance company may reduce the amount of the company's excess reserves on account of:
(1)  reinsurance that complies with Chapter 493;
(2)  a letter of credit that complies with Section 493.104(b)(2)(C); or
(3)  guaranties from a holding company or an affiliated company as provided by Section 841.417.
(c)  Notwithstanding Subsection (b), a limited purpose subsidiary life insurance company may hold guaranties from a holding company or an affiliated company as provided by Section 841.417 as an admitted asset with an offsetting increase in special surplus funds to support excess reserves only.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.07, 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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.413. Permitted Reinsurance

Sec. 841.413.  PERMITTED REINSURANCE.  (a)  A limited purpose subsidiary life insurance company may only reinsure the risks of a ceding insurer under a reinsurance contract.
(b)  Unless otherwise approved in advance by the commissioner, a limited purpose subsidiary life insurance company may not assume or retain exposure to reinsurance losses for the company's own account that are not funded by:
(1)  premium and other amounts payable by the ceding insurer to the limited purpose subsidiary life insurance company under the reinsurance contract, or any return on the investment of the premiums or other amounts;
(2)  letters of credit that qualify under Section 493.104(b)(2)(C); or
(3)  guaranties of a holding company or an affiliated company as provided by Section 841.417.
(c)  A limited purpose subsidiary life insurance company may cede risks assumed under a reinsurance contract to one or more reinsurers through the purchase of reinsurance, subject to the prior approval of the commissioner.  The commissioner may approve a reinsurance contract under this subsection if the commissioner finds that:
(1)  the proposed reinsurance complies with Chapter 493;
(2)  the proposed reinsurer has sufficient liquidity, admitted assets, and policyholder surplus to support the liabilities assumed under the reinsurance contract; and
(3)  the proposed reinsurance contract would not result in a hazardous financial condition for the limited purpose subsidiary life insurance company.
(d)  A limited purpose subsidiary life insurance company may enter into contracts and conduct other commercial activities related or incidental to, and necessary to fulfill the purposes of, a reinsurance contract.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.08, 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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.414. Reports on Reserves and Risk-Based Capital

Sec. 841.414.  REPORTS ON RESERVES AND RISK-BASED CAPITAL.  (a)  A limited purpose subsidiary life insurance company annually shall file an opinion of the appointed actuary acceptable to the commissioner concerning the methods and assumptions used to set reserves.  The opinion must demonstrate that the limited purpose subsidiary life insurance company holds risk-based capital and invested admitted assets that are at least equal to reserves specified by generally accepted accounting principles.
(b)  The commissioner may reject the opinion of the appointed actuary if the commissioner determines that accepting the opinion would be hazardous to policyholders, enrollees, creditors, or the public.
(c)  A limited purpose subsidiary life insurance company annually shall file with the commissioner a report of the limited purpose subsidiary life insurance company's risk-based capital level as of the end of the preceding calendar year containing the information required by the risk-based capital instructions adopted by the commissioner.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.415. Other Laws Not Applicable

Sec. 841.415.  OTHER LAWS NOT APPLICABLE.  The deposit requirements in Subchapter H do not apply to a limited purpose subsidiary life insurance company.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.416. Applicability of Other Law

Sec. 841.416.  APPLICABILITY OF OTHER LAW.  Except as specifically provided by law, all provisions of this code apply to a limited purpose subsidiary life insurance company formed under this subchapter.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.417. Guaranty Requirements

Sec. 841.417.  GUARANTY REQUIREMENTS.  (a)  A guaranty may not be used to comply with this chapter without the prior written approval of the commissioner.
(b)  Before approving a guaranty, the commissioner must find that:
(1)  the guarantor has capital and surplus of $100 million, exclusive of investments in subsidiaries and affiliates;
(2)  the guarantor has admitted assets backing capital and surplus in an amount sufficient to fulfill the guaranty, and the sufficiency on an ongoing basis is demonstrated to the satisfaction of the commissioner;
(3)  the guarantor and all affiliates are in good standing with the department;
(4)  the guarantor has provided all information requested by the commissioner; and
(5)  the guarantor is otherwise acceptable to the commissioner.
(c)  Notwithstanding Subsection (b), the commissioner may allow, subject to the commissioner's prior approval, an affiliated company of the holding company to serve as guarantor.  The commissioner may approve an affiliated company as a guarantor on a finding that the affiliated company possesses the independent financial means to discharge the guaranty using the affiliated company's own financial resources.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.418. Sunset Provision

Sec. 841.418.  SUNSET PROVISION.  This subchapter is valid for business sold only until January 1 of the year in which principle-based reserve requirements become operative in Texas under the adoption of the National Association of Insurance Commissioners' 2009 amendments to the NAIC Model Standard Valuation Law. After that January 1, the limited purpose subsidiary life insurance company may not assume new risks of a ceding insurer relating to business sold after that date.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.419. Certification of Actuarial Officer

Sec. 841.419.  CERTIFICATION OF ACTUARIAL OFFICER.  (a)  At the time a limited purpose subsidiary life insurance company files an application for a certificate of authority under this subchapter, and not later than March 1 of each year that a limited purpose subsidiary life insurance company is in operation and is ceded new business from a ceding insurer, a senior actuarial officer of each ceding insurer shall file with the commissioner a certification that the ceding insurer's transactions with the limited purpose subsidiary life insurance company are not being used to gain an unfair advantage in the pricing of the ceding insurer's products.
(b)  A ceding insurer may not be deemed to have an unfair advantage if the pricing of the policies and contracts reinsured by the limited purpose subsidiary life insurance company reflects, at the time the policies and contracts were issued, a reasonable long-term estimate of the cost to the ceding insurer of an alternative third-party transaction, and uses current pricing assumptions.
(c)  The ceding insurer shall keep documentation between examinations that sets forth the manner in which a senior actuarial officer arrived at the conclusions in the certification.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 I. Limited Purpose Subsidiary Life Insurance Companies › Section 841.420. Accounting and Financial Reporting

Sec. 841.420.  ACCOUNTING AND FINANCIAL REPORTING.  The commissioner shall prescribe accounting and financial reporting requirements with regard to the limited purpose subsidiary life insurance company and any insurer as defined by Section 841.402 that organizes a limited purpose subsidiary life insurance company.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.
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 O. Enforcement and Intervention › Section 841.701. Revocation of Certificate of Authority

Sec. 841.701.  REVOCATION OF CERTIFICATE OF AUTHORITY.  (a)  If the commissioner determines that an insurance company that holds a certificate of authority does not comply with this chapter or another law described by Section 841.002, the commissioner shall notify the company that the commissioner intends to revoke its certificate of authority on the expiration of the 30-day period after the date actual notice is delivered or mailed under this section.
(b)  Notice under this section must:
(1)  be in writing;  and
(2)  be delivered to an executive officer of the company by personal service or by registered mail.
(c)  If an insurance company receiving notice under this section does not fully comply before the expiration of the period prescribed by Subsection (a), the commissioner shall revoke the company's certificate of authority.
(d)  An insurance company whose certificate of authority is revoked under this section is not entitled to receive another certificate of authority for a period of one year and until the company has fully and in good faith complied with this chapter.
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 O. Enforcement and Intervention › Section 841.702. Appeal of Determination to Revoke Certificate

Sec. 841.702.  APPEAL OF DETERMINATION TO REVOKE CERTIFICATE.  An insurance company aggrieved by an order of the commissioner to revoke the company's certificate of authority under Section 841.701 may file suit in a court in Travis County to vacate the order.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.022, eff. September 1, 2005.
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 O. Enforcement and Intervention › Section 841.703. Certificate of Authority Void on Failure to Satisfy Judgment

Sec. 841.703.  CERTIFICATE OF AUTHORITY VOID ON FAILURE TO SATISFY JUDGMENT.  (a)  If an officer holding an execution issued on a final judgment rendered against an insurance company demands payment of the judgment from an officer or attorney of record of the company and the company does not fully satisfy the judgment before the 31st day after the date the demand is made, the officer shall certify the demand and failure to the commissioner, regardless of whether the demand is made in this state.
(b)  On receipt of a certification under Subsection (a), the commissioner shall declare void the certificate of authority issued to the company under this chapter.
(c)  An insurance company whose certificate of authority is declared void under this section may not engage in the business of insurance in this state until:
(1)  the judgment is fully satisfied and discharged;  and
(2)  the commissioner renews the company's certificate of authority.
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 O. Enforcement and Intervention › Section 841.704. False Statement, Report, or Other Document; Criminal Penalty

Sec. 841.704.  FALSE STATEMENT, REPORT, OR OTHER DOCUMENT;  CRIMINAL PENALTY.  (a)  A person commits an offense if the person executes or causes to be executed a statement, report, or other document required by law to be filed with the commissioner that contains a material statement or fact that the person knows to be false.
(b)  A person commits an offense if the person is an officer of an insurance company that is not organized under the laws of this state and the person files a statement, report, or other document required by law to be filed with the commissioner that contains a material statement or fact that the person knows to be false.
(c)  An offense under this section is punishable by imprisonment in the Texas Department of Criminal Justice for a term of not less than one year.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 25.120, eff. September 1, 2009.
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 O. Enforcement and Intervention › Section 841.705. Penalty for Failure to Invest or Report

Sec. 841.705.  PENALTY FOR FAILURE TO INVEST OR REPORT.  (a)  In addition to the penalty provided by this subchapter, an insurance company is subject to a penalty as prescribed by Subsection (b) if, while holding a certificate of authority to engage in the business of insurance in this state, or after the company ceases to write new business or ceases to hold a certificate of authority, the company intentionally fails or refuses to:
(1)  make the investments required by Chapter 425;
(2)  make a report required by a law described by Section 841.002;
(3)  make any special report requested by the commissioner under a law described by Section 841.002; or
(4)  comply with another provision of a law described by Section 841.002.
(b)  A penalty under this section is in the amount of $25 per day for each day the company remains in default after the commissioner notifies the company of the default in the manner provided by this subchapter.
(c)  A penalty under this section may be recovered in a suit brought by the attorney general on behalf of the state in a district court of Travis County.
(d)  In a suit brought to recover a penalty under this section:
(1)  there are rebuttable presumptions that:
(A)  any default that may have occurred was intentional; and
(B)  the notice required by Subsection (b) was given; and
(2)  if the question of whether the investments required by Chapter 425 were made is at issue, the defendant insurance company has the burden of proving that the investments were made as required by that chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 15, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle C - Life, Health, and Accident Insurers and Related Entities › Chapter 842 - Group Hospital Service Corporations › Subchapter A. General Provisions › Section 842.001. Definitions

Sec. 842.001.  DEFINITIONS.  In this chapter:
(1)  "Group hospital service corporation" means a corporation organized under this chapter to establish and operate a nonprofit hospital service plan, under which hospital care may be provided by the corporation through one or more hospitals and sanitariums with which the corporation has contracted for the provision of that care.
(2)  "Health care provider" means a person, association, partnership, corporation, or other entity that provides a service or supplies to prevent, alleviate, cure, or heal human illness or injury.
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 842 - Group Hospital Service Corporations › Subchapter A. General Provisions › Section 842.002. Applicability of Other Laws

Sec. 842.002.  APPLICABILITY OF OTHER LAWS.  (a)  Except as otherwise required by this chapter, a state agency may not require a group hospital service corporation to post a bond or place a deposit with the agency or another agency of this state to begin or maintain operations authorized under this chapter.
(b)  The group hospital service corporation is exempt from a provision of this code that is not expressly made applicable to the corporation.
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 842 - Group Hospital Service Corporations › Subchapter A. General Provisions › Section 842.003. Corporation Subject to Regulation by Commissioner and Department

Sec. 842.003.  CORPORATION SUBJECT TO REGULATION BY COMMISSIONER AND DEPARTMENT.  Each group hospital service corporation is subject to regulation by the department and the commissioner.
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 842 - Group Hospital Service Corporations › Subchapter B. Formation and Structure of Group Hospital Service Corporation › Section 842.051. Application for Corporate Charter; Nonprofit Status Required

Sec. 842.051.  APPLICATION FOR CORPORATE CHARTER;  NONPROFIT STATUS REQUIRED.  (a)  Seven or more persons, a majority of whom are superintendents of hospitals or physicians licensed by the Texas State Board of Medical Examiners, may apply to the secretary of state for a corporate charter to operate a group hospital service corporation.
(b)  A group hospital service corporation must be governed and operated as a nonprofit organization.
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 842 - Group Hospital Service Corporations › Subchapter B. Formation and Structure of Group Hospital Service Corporation › Section 842.052. Minimum Membership Requirements

Sec. 842.052.  MINIMUM MEMBERSHIP REQUIREMENTS.  (a)  Before a group hospital service corporation may be incorporated, the corporation must have collected in advance from at least 500 applicants for membership:
(1)  the application fee;  and
(2)  an amount at least equal to the amount charged by the corporation for one month's premium for coverage.
(b)  A group hospital service corporation must maintain a membership of at least 500 as a condition of continued operation.
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 842 - Group Hospital Service Corporations › Subchapter C. Authority to Engage in Business › Section 842.101. Issuance of Certificate of Authority

Sec. 842.101.  ISSUANCE OF CERTIFICATE OF AUTHORITY.  (a)  The department shall issue to a group hospital service corporation a certificate of authority that authorizes the corporation to engage in the business of a group hospital service corporation if the corporation:
(1)  files a statement acceptable to the department showing solvency;  and
(2)  complies with this chapter.
(b)  The department shall charge the fee prescribed by law for the issuance of the certificate of authority.
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 842 - Group Hospital Service Corporations › Subchapter D. Board of Directors; Personnel › Section 842.151. Board of Directors

Sec. 842.151.  BOARD OF DIRECTORS.  (a)  Each group hospital service corporation is governed by a board of directors that has full control over its management affairs.
(b)  A board of directors must be composed of at least 12 but not more than 20 directors.  A majority of the directors must be persons who:
(1)  are not health care providers or employees of health care providers;  and
(2)  do not have a financial interest in a health care provider.
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 842 - Group Hospital Service Corporations › Subchapter D. Board of Directors; Personnel › Section 842.152. Compensation of Directors

Sec. 842.152.  COMPENSATION OF DIRECTORS.  A director of a group hospital service corporation may not receive compensation for the director's services but is entitled to receive reimbursement for reasonable and necessary expenses incurred in attending a meeting called to manage or direct the affairs of the corporation.
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 842 - Group Hospital Service Corporations › Subchapter D. Board of Directors; Personnel › Section 842.153. Board Meetings

Sec. 842.153.  BOARD MEETINGS.  The board of directors of a group hospital service corporation may not meet more frequently than once a month.  A meeting may not last more than five days.
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 842 - Group Hospital Service Corporations › Subchapter D. Board of Directors; Personnel › Section 842.154. Bond Requirements for Certain Officers and Employees

Sec. 842.154.  BOND REQUIREMENTS FOR CERTAIN OFFICERS AND EMPLOYEES.  (a)  Each group hospital service corporation shall post a bond for the officer or employee responsible for the handling of the corporation's money.  The bond must be:
(1)  issued by a surety company licensed by the department to do business in this state;  and
(2)  at all times in an amount at least equal to $25,000.
(b)  In addition to the bond required under Subsection (a), the corporation shall post a separate bond or a blanket bond for all employees who have access to the money of the corporation.  The bond must be in a reasonable amount set by the commissioner in the amount of at least $500, not to exceed $10,000.
(c)  A bond required by this section must be payable to the commissioner for the use and benefit of the corporation.
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 842 - Group Hospital Service Corporations › Subchapter D. Board of Directors; Personnel › Section 842.155. Treasurer's Bond

Sec. 842.155.  TREASURER'S BOND.  The treasurer of each group hospital service corporation shall post a fidelity bond with a corporation surety.  The bond must be in the amount determined by the officers of the corporation as necessary to secure the faithful handling of the corporation's money.
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 842 - Group Hospital Service Corporations › Subchapter D. Board of Directors; Personnel › Section 842.156. Compensation of Certain Officers and Employees

Sec. 842.156.  COMPENSATION OF CERTAIN OFFICERS AND EMPLOYEES.  A paid officer or employee of a group hospital service corporation may not receive more than $20,000 annually as compensation for the officer's or employee's services unless a higher amount is first authorized by a vote of:
(1)  the board of directors of the corporation;  or
(2)  a committee of the board of directors that is charged with the duty of authorizing that compensation.
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 842 - Group Hospital Service Corporations › Subchapter E. Regulation of Group Hospital Service Corporations › Section 842.201. Annual Statement; Filing Fee

Sec. 842.201.  ANNUAL STATEMENT;  FILING FEE.  (a)  Not later than March 1 of each year, each group hospital service corporation shall file with the department an annual statement that covers the operations for the preceding calendar year.
(b)  The statement must be in the form prescribed by and provide the information required by the commissioner.
(c)  The department shall charge a fee in an amount determined under Chapter 202 for filing the statement.
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.025, eff. April 1, 2009.