2023 Texas Statutes › Insurance Code › Title 6 - Organization of Insurers and Related Entities › Subtitle B - Organization of Regulated Entities › Chapter 823 - Insurance Holding Company Systems › Subchapter B. Registration › Section 823.052. Required Information; Registration Statement

Sec. 823.052.  REQUIRED INFORMATION;  REGISTRATION STATEMENT.  (a)  To register as required by Section 823.051, an insurer must file a registration statement with the department.
(b)  The registration statement must be in a format prescribed by the National Association of Insurance Commissioners or adopted by rule of the commissioner and contain current information about:
(1)  the identity and relationship of each affiliate in the insurance holding company system of which the insurer is a part;
(2)  the capital structure, general financial condition, and ownership and management of the insurer, the insurer's holding company, the insurer's subsidiaries, and, if the commissioner considers the information necessary, any of the insurer's other affiliates; and
(3)  any pledge of stock of the insurer or a subsidiary or controlling affiliate of the insurer for a loan made to a member of the insurer's insurance holding company system.
(c)  The registration statement must also contain information about:
(1)  each outstanding loan the insurer makes to an affiliate of the insurer or an affiliate makes to the insurer;
(2)  each purchase, sale, or exchange of securities or other investment between the insurer and an affiliate of the insurer;
(3)  each purchase, sale, or exchange of assets between the insurer and an affiliate of the insurer;
(4)  each management and service contract or cost-sharing arrangement between the insurer and an affiliate of the insurer;
(5)  each reinsurance agreement between the insurer and an affiliate of the insurer that covers one or more lines of insurance of the ceding company;
(6)  each agreement between the insurer and an affiliate of the insurer to consolidate federal income tax returns;
(7)  each transaction between the insurer and an affiliated financial institution;
(8)  each transaction between the insurer and an affiliate of the insurer that is not in the ordinary course of business;
(9)  each guarantee or undertaking, other than an insurance contract entered into in the ordinary course of the insurer's business, for the benefit of an affiliate of the insurer that results in a contingent exposure of the insurer's assets to liability;
(10)  each dividend or distribution to the insurer's shareholders;
(11)  each transaction between the insurer and an affiliate of the insurer not specified by this subsection that is subject to Section 823.103 or 823.104;
(12)  the corporate governance and internal control responsibilities of the insurer's board of directors, including a statement that:
(A)  the insurer's senior management or officers have approved and implemented, and continue to maintain and monitor, corporate governance and internal control procedures; and
(B)  the insurer's board of directors oversees corporate governance and internal controls; and
(13)  any other information that the commissioner requires by rule.
(c-1)  On request of the commissioner, an insurer shall include with the statement a copy of all financial statements for the insurance holding company system and all affiliates of the holding company system, including annual audited financial statements filed with the United States Securities and Exchange Commission pursuant to the Securities Act of 1933 (15 U.S.C. Section 77a et seq.) or the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.).  An insurer may not be required to submit financial statements for an affiliate that is privately owned by not more than five security holders, each of whom is an individual, unless the commissioner determines that the operations of the affiliate may materially affect the operations, management, or financial condition of an insurer in a holding company system.  An affiliate may seek judicial review of a request for financial statements under this subsection.
(c-2)  An insurer required by the commissioner to submit financial statements under this section, Section 823.201, or Section 823.351 may satisfy the requirement by submitting to the commissioner:
(1)  the financial statements that the insurer's parent corporation most recently filed with the United States Securities and Exchange Commission; and
(2)  if the insurer is required to submit financial statements for an affiliate, the financial statements that the affiliate most recently filed with an agency that regulates the affiliate.
(d)  The information required by Subsection (c) applies only to agreements in force, relationships subsisting, and transactions outstanding.
(e)  The commissioner shall adopt the format of the registration statement.  In adopting or revising the format, the commissioner may require information on other matters concerning transactions between a registered insurer and an affiliate of the insurer.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 157 (S.B. 1542), Sec. 1, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 922 (S.B. 1431), Sec. 5, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1087 (H.B. 3460), Sec. 2, eff. June 14, 2013.