reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter F. Workers' Compensation Benefit Plans › Section 4151.255. Administrator Compensation

Sec. 4151.255.  ADMINISTRATOR COMPENSATION.  Except as provided by Section 4151.117, an administrator may accept compensation of any kind for the performance of administrative services in connection with workers' compensation claims from:
(1)  an insurance carrier responsible for those claims;
(2)  an employer with whom the administrator has entered into a contract; or
(3)  both the insurance carrier and the employer.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.20, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter F. Workers' Compensation Benefit Plans › Section 4151.256. Large Deductible Policies

Sec. 4151.256.  LARGE DEDUCTIBLE POLICIES.  An employer who enters into a contract with an insurance carrier under Section 2053.202(b) may not use or contract with an administrator to perform administrative services in connection with workers' compensation benefits unless the administrator has entered into a written agreement with the insurance carrier that:
(1)  complies with all the provisions of this chapter; and
(2)  provides that the insurance carrier is responsible for:
(A)  setting standards used in the handling of claims; and
(B)  arranging for the payment of claims.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.20, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter F. Workers' Compensation Benefit Plans › Section 4151.257. Rules

Sec. 4151.257.  RULES.  The commissioner shall adopt rules to implement the requirements of this subchapter, including rules prescribing requirements for contracts and master services agreements and requirements for the payment of claims.  The rules must provide for compliance with the requirements of this chapter for any contract that takes effect or has an annual anniversary date on or after January 1, 2008.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.20, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter G. Disciplinary Actions; Penalties › Section 4151.301. Grounds for Denial, Suspension, or Revocation of Certificate of Authority

Sec. 4151.301.  GROUNDS FOR DENIAL, SUSPENSION, OR REVOCATION OF CERTIFICATE OF AUTHORITY.  The department may deny an application for a certificate of authority or discipline the holder of a certificate of authority under this subchapter if the department determines that the applicant or holder, individually, or through an officer, director, or shareholder:
(1)  has wilfully violated an insurance law of this state;
(2)  has intentionally made a material misstatement in the application for a certificate of authority;
(3)  has obtained or attempted to obtain a certificate of authority by fraud or misrepresentation;
(4)  has misappropriated, converted to the applicant's or holder's own use, or illegally withheld money belonging to:
(A)  an insurance carrier,  as that term is defined by Section 401.011, Labor Code;
(B)  an insurer, as that term is defined by  Section 4001.003;
(C)  a health maintenance organization; or
(D)  an insured, enrollee, injured employee, or beneficiary;
(5)  has engaged in fraudulent or dishonest acts or practices;
(6)  has materially misrepresented the terms and conditions of an insurance policy, certificate, evidence of coverage, or contract;
(7)  has been convicted of a felony;
(8)  is in a financial condition, or is operating or conducting business in a manner, that would render further transaction of business in this state hazardous or injurious to insured persons or the public;
(9)  has failed to comply with any judgment rendered against the applicant or holder before the 60th day after the date on which the judgment becomes final;
(10)  has wilfully violated a commissioner rule;
(11)  has refused to be examined or to produce accounts, records, and files for examination as required by this chapter or commissioner rule;
(12)  at any time fails to meet a qualification for which issuance of the certificate of authority could have been denied had the failure then existed and been known to the commissioner;
(13)  has had a certificate of authority, license, or other authority issued by this state, another state, or the United States suspended or revoked; or
(14)  has failed to timely file the annual report required by Section 4151.205.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.21, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter G. Disciplinary Actions; Penalties › Section 4151.302. Remedies for Violation of Insurance Laws or Commissioner Rules

Sec. 4151.302.  REMEDIES FOR VIOLATION OF INSURANCE LAWS OR COMMISSIONER RULES.  In addition to any other remedy available under Chapter 82 for a violation of this code, another insurance law of this state, or a commissioner rule, the department may:
(1)  deny an application for a certificate of authority;
(2)  suspend or revoke a certificate of authority;
(3)  place on probation a person whose certificate of authority has been suspended;
(4)  assess an administrative penalty; or
(5)  reprimand a certificate of authority holder.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.21, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter G. Disciplinary Actions; Penalties › Section 4151.303. Probated Suspension

Sec. 4151.303.  PROBATED SUSPENSION.  If the suspension of a certificate of authority is probated, the commissioner may require the holder to:
(1)  report regularly to the department on any matter that is the basis of the probation; or
(2)  limit the holder's practice to the areas prescribed by the department.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.21, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter G. Disciplinary Actions; Penalties › Section 4151.304. Hearing

Sec. 4151.304.  HEARING.  If the department proposes to deny an application for a certificate of authority, or to suspend or revoke a certificate of authority, the applicant or holder is entitled to notice and a hearing conducted by the State Office of Administrative Hearings as provided by Chapter 40.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.21, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter G. Disciplinary Actions; Penalties › Section 4151.305. Application for Certificate of Authority After Denial or Revocation

Sec. 4151.305.  APPLICATION FOR CERTIFICATE OF AUTHORITY AFTER DENIAL OR REVOCATION.  (a)  A person, or officer, director, or shareholder of a person, whose application has been denied or whose certificate of authority has been revoked under this subchapter may not apply for a certificate of authority before the fifth anniversary of:
(1)  the effective date of the denial or revocation; or
(2)  the date of a final court order affirming the denial or revocation if judicial review was sought.
(b)  An application filed after the period required by Subsection (a) may be denied by the commissioner if the applicant fails to show good cause why the denial or revocation should not be a bar to the issuance of a new certificate.
(c)  Subsection (b) does not apply to an applicant whose application was denied for failure by the applicant to submit a properly completed application for a certificate of authority.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.21, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter G. Disciplinary Actions; Penalties › Section 4151.306. Disciplinary Proceeding for Conduct Committed Before Surrender or Forfeiture of Certificate

Sec. 4151.306.  DISCIPLINARY PROCEEDING FOR CONDUCT COMMITTED BEFORE SURRENDER OR FORFEITURE OF CERTIFICATE.  (a)  The department may institute a disciplinary proceeding against a former certificate holder, or officer, director, or shareholder of a former certificate holder, for conduct committed before the effective date of a voluntary surrender or automatic forfeiture of the certificate of authority.
(b)  In a proceeding under this section, the fact that the certificate holder, or officer, director, or shareholder of a certificate holder, has surrendered or forfeited the certificate does not affect the former certificate holder's, or officer, director, or shareholder of a former certificate holder's, culpability for the conduct that is the subject of the proceeding.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.21, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter G. Disciplinary Actions; Penalties › Section 4151.307. Emergency Certificate Suspension

Sec. 4151.307.  EMERGENCY CERTIFICATE SUSPENSION.  (a)  The commissioner may suspend the certificate of an administrator without notice or hearing if the commissioner determines that:
(1)  the administrator is insolvent or impaired;
(2)  an order for receivership, conservatorship, rehabilitation, or any other delinquency regarding the administrator has been entered in any state; or
(3)  the financial condition or business practices of the administrator otherwise pose an imminent threat to the public health, safety, or welfare of the residents of this state.
(b)  On determining that grounds exist under Subsection (a) to suspend the administrator's certificate of authority, the commissioner may issue an order suspending the certificate.  The commissioner shall immediately serve notice of the suspension on the holder.
(c)  The notice required by Subsection (b) must:
(1)  be personally served on the holder or be sent by registered or certified mail, return receipt requested, to the holder's last known address according to the department's records;
(2)  state the grounds for the suspension; and
(3)  inform the holder of the right to a hearing on the suspension order.
(d)  An administrator whose certificate of authority is suspended under this section is entitled to request a hearing on the suspension not later than the 30th day after the date of receipt of notice of the suspension.  Not later than the 10th day after the date a hearing is requested, the commissioner shall issue a notice of hearing.
(e)  The hearing must be held not later than the 10th day after the date notice of hearing is issued, unless the parties agree to a later date.
(f)  A hearing on a suspension order under this section is subject to Chapter 2001, Government Code, and to Subchapter A, Chapter 40.  After the hearing, the administrative law judge shall recommend to the commissioner whether to uphold, vacate, or modify the suspension order.
(g)  A suspension order issued under this section remains in effect until further action is taken by the commissioner.
Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.21, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter G. Disciplinary Actions; Penalties › Section 4151.308. General Administrative Sanctions

Sec. 4151.308.  GENERAL ADMINISTRATIVE SANCTIONS.  An administrator or other person who violates this chapter is subject to the sanctions provided by Chapter 82.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Renumbered from Insurance Code, Section 4151.207 and amended by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.22, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4151 - Third-Party Administrators › Subchapter G. Disciplinary Actions; Penalties › Section 4151.309. Criminal Penalty

Sec. 4151.309.  CRIMINAL PENALTY.  (a)  An administrator commits an offense if the administrator knowingly violates this chapter or a rule of the commissioner adopted under this chapter.
(b)  An offense under this section is a misdemeanor punishable by a fine of not less than $500 or more than $5,000.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Renumbered from Insurance Code, Section 4151.208 and amended by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.23, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter A. General Provisions › Section 4152.002. Classification as Commercially Domiciled Insurer

Sec. 4152.002.  CLASSIFICATION AS COMMERCIALLY DOMICILED INSURER.  (a)  For purposes of this chapter, a foreign or alien insurer authorized to engage in the business of insurance in this state is a commercially domiciled insurer if during the period described by Subsection (b) the average of the gross premiums written by the insurer in this state is:
(1)  more than the average of the gross premiums written by the insurer in the insurer's state of domicile;  and
(2)  20 percent or more of the total gross premiums written by the insurer in the United States, as reported in the insurer's three most recent annual statements.
(b)  The period applicable to Subsection (a) is:
(1)  the three most recent fiscal years of the insurer that precede the fiscal year in which the determination under this section is made;  or
(2)  if the insurer has been authorized to engage in the business of insurance in this state for less than the period described by Subdivision (1), the period for which the insurer has been authorized to engage in the business of insurance in this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter A. General Provisions › Section 4152.003. Rights of Third Parties Not Affected

Sec. 4152.003.  RIGHTS OF THIRD PARTIES NOT AFFECTED.  This chapter does not restrict the rights of or confer any additional rights on a policyholder, claimant, creditor, or other third party.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter A. General Provisions › Section 4152.004. Rules

Sec. 4152.004.  RULES.  The commissioner may adopt reasonable rules as necessary to implement this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter B. License Requirements › Section 4152.051. License Required

Sec. 4152.051.  LICENSE REQUIRED.  (a)  A person may not act as a broker or manager in this state for an insurer engaged in the business of insurance or reinsurance in this state unless the person holds an appropriate license under this chapter.
(b)  A person who holds a manager license is not required to obtain a broker license but must comply with Subchapter D to act as a broker.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter B. License Requirements › Section 4152.052. Qualifications

Sec. 4152.052.  QUALIFICATIONS.  The commissioner may establish qualifications for a reinsurance intermediary license as reasonably necessary to fulfill the requirements of this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter B. License Requirements › Section 4152.053. Application

Sec. 4152.053.  APPLICATION.  (a)  An application for a reinsurance intermediary license may not be accepted unless the application shows on its face that the applicant has been engaged in the business of insurance or reinsurance for at least three years.
(b)  Each person authorized under Section 4152.057 to act as a reinsurance intermediary under a reinsurance intermediary license issued to an entity must be named in the application and any supplement to the application.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter B. License Requirements › Section 4152.054. Service of Notice, Orders, and Process

Sec. 4152.054.  SERVICE OF NOTICE, ORDERS, AND PROCESS.  (a)  An applicant for a reinsurance intermediary license who is not a resident of this state must:
(1)  designate the commissioner as agent for service of process in the manner, and with the same legal effect, as provided by Chapter 804 for service of process on unauthorized insurers;  and
(2)  provide the commissioner with the name and address of a resident of this state on whom a notice or order of the commissioner or process affecting the applicant may be served.
(b)  A license holder who is a nonresident shall notify the commissioner in writing of each change in the license holder's designated agent under Subsection (a)(2) not later than the 30th day after the date on which the license holder makes the change.  The change does not take effect until acknowledged by the commissioner.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter B. License Requirements › Section 4152.055. Fees

Sec. 4152.055.  FEES.  (a)  The department shall collect a nonrefundable licensing fee from each reinsurance intermediary who applies for an original or renewal license in this state.
(b)  The commissioner shall set the fees for original, renewal, and reciprocal licenses in amounts that are reasonable and necessary to cover the costs of the licensing program.
(c)  The fees shall be deposited to the credit of the Texas Department of Insurance operating account.  Money deposited in the account under this subsection may be used by the department only to enforce this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter B. License Requirements › Section 4152.056. License Issuance

Sec. 4152.056.  LICENSE ISSUANCE.  The commissioner shall issue a reinsurance intermediary license to a person who complies with this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter B. License Requirements › Section 4152.057. Persons Authorized to Act Under License

Sec. 4152.057.  PERSONS AUTHORIZED TO ACT UNDER LICENSE.  (a)  A reinsurance intermediary license issued to a firm or association authorizes each member of the firm or association and any designated employee to act as a reinsurance intermediary under the license.
(b)  A reinsurance intermediary license issued to a corporation authorizes each officer and any designated employee or director of the corporation to act as a reinsurance intermediary under the license.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter B. License Requirements › Section 4152.058. Bond or Errors and Omissions Policy

Sec. 4152.058.  BOND OR ERRORS AND OMISSIONS POLICY.  (a)  The commissioner may require a reinsurance intermediary to:
(1)  file a bond with the commissioner for the protection of all insurers represented;  or
(2)  maintain an errors and omissions policy.
(b)  The issuer of the bond or the errors and omissions policy must be acceptable to the commissioner.  The bond or the policy must be in an amount determined by the commissioner to be customary and adequate under the circumstances.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter B. License Requirements › Section 4152.059. License Expiration and Renewal

Sec. 4152.059.  LICENSE EXPIRATION AND RENEWAL.  (a)  A reinsurance intermediary license is valid for two years from the date of issuance and may be renewed for two-year terms.
(b)  The commissioner may adopt standards for the renewal of a reinsurance intermediary license.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter C. Examination of Reinsurance Intermediaries › Section 4152.101. Examination by Commissioner

Sec. 4152.101.  EXAMINATION BY COMMISSIONER.  (a)  A reinsurance intermediary is subject to examination by the commissioner of the reinsurance intermediary's:
(1)  financial condition;  and
(2)  compliance with the laws of this state affecting the conduct of the reinsurance intermediary's business.
(b)  A manager may be examined as if the manager were an insurer.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter C. Examination of Reinsurance Intermediaries › Section 4152.102. Access to and Maintenance of Books, Bank Accounts, and Records

Sec. 4152.102.  ACCESS TO AND MAINTENANCE OF BOOKS, BANK ACCOUNTS, AND RECORDS.  (a)  The commissioner is entitled to access to all books, bank accounts, and records of a reinsurance intermediary.
(b)  A reinsurance intermediary shall maintain books, bank accounts, and records in a form usable by the commissioner.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter C. Examination of Reinsurance Intermediaries › Section 4152.103. Conduct of Examination

Sec. 4152.103.  CONDUCT OF EXAMINATION.  The commissioner, one or more commissioned examiners, a certified public accountant, or another person qualified to perform the examination shall conduct an examination under this subchapter as the commissioner considers necessary.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter C. Examination of Reinsurance Intermediaries › Section 4152.104. Examination Expense

Sec. 4152.104.  EXAMINATION EXPENSE.  (a)  A reinsurance intermediary who is examined under this subchapter shall pay an amount for the expense of the examination that the commissioner certifies as just and reasonable.
(b)  Expenses relating to an examination conducted under this subchapter may be charged to the person examined in accordance with Sections 401.151, 401.152, 401.155, and 401.156.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2J.005, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter D. Requirements Relating to Brokers › Section 4152.151. Contract Between Broker and Insurer

Sec. 4152.151.  CONTRACT BETWEEN BROKER AND INSURER.  (a)  A broker and an insurer represented by the broker may enter into a transaction only under a written contract that:
(1)  is executed by a responsible officer of both the broker and the insurer;  and
(2)  specifies the responsibilities of each party.
(b)  At a minimum, a contract entered into under this section must:
(1)  authorize the insurer to terminate the broker's authority in writing at any time;
(2)  require the broker to:
(A)  provide accounts to the insurer at least quarterly that accurately detail all material transactions, including information necessary to support all commissions, charges, and other fees received by or owing to the broker;
(B)  pay all money due the insurer not later than the 30th day after the date of receipt;
(C)  hold all money collected for the insurer's account in a fiduciary capacity in a bank that is a qualified United States financial institution;  and
(D)  if premiums or contributions are collected on behalf of or for more than one insurer:
(i)  maintain records to identify the ownership interest of each insurer in money held in a fiduciary capacity;  and
(ii)  provide to each insurer on request a copy of the records relating to deposits and withdrawals on behalf of or for that insurer;
(3)  state that the broker will:
(A)  comply with:
(i)  Section 4152.153;  and
(ii)  the written standards established by the insurer for the cession or retrocession of risks ceded;
(B)  disclose to the insurer any relationship with a reinsurer to which business will be ceded or retroceded;  and
(C)  provide annually to each insurer with whom the broker transacts business an audited statement of the broker's financial condition prepared by a certified public accountant;
(4)  identify:
(A)  the name and address of the insurer;
(B)  the kinds of insurance to be reinsured or retroceded;
(C)  the type of reinsurance or retrocessions;  and
(D)  the limits of coverage;  and
(5)  state the effective date and expiration date of the contract.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter D. Requirements Relating to Brokers › Section 4152.152. Placement of Reinsurance With Unauthorized Reinsurer

Sec. 4152.152.  PLACEMENT OF REINSURANCE WITH UNAUTHORIZED REINSURER.  Unless the ceding insurer releases the broker in writing from the broker's obligations under this section, a broker who places reinsurance on behalf of an authorized ceding insurer with a reinsurer that is not authorized, accredited, or trusteed in this state under Chapter 493 shall:
(1)  exercise due diligence in inquiring into the financial condition of the reinsurer;
(2)  disclose to the ceding insurer the broker's findings in connection with the inquiry under Subdivision (1); and
(3)  make available to the ceding insurer a copy of the current financial statement of the reinsurer.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2J.006, eff. April 1, 2009.
Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.14, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter D. Requirements Relating to Brokers › Section 4152.153. Transaction Records

Sec. 4152.153.  TRANSACTION RECORDS.  (a)  For at least 10 years after the expiration of each contract of reinsurance transacted by a broker, the broker shall maintain a complete record for each transaction that contains:
(1)  the type of contract, limits, underwriting restrictions, classes of risks, and territory;
(2)  the period of coverage, including effective and expiration dates, cancellation provisions, and notice requirements regarding cancellation;
(3)  reporting and settlement requirements regarding balances;
(4)  the rate used to compute the reinsurance premium;
(5)  the name and address of each ceding or assuming insurer;
(6)  the rates of all reinsurance commissions, including the commissions on any retrocessions handled by the broker;
(7)  related correspondence and memoranda;
(8)  proof of placement;
(9)  details regarding retrocessions handled by the broker, including the identity and address of each retrocessionaire and the respective percentage of each contract assumed or ceded;
(10)  financial records, including premium and loss accounts;  and
(11)  if the broker procures a reinsurance contract on behalf of an authorized ceding insurer:
(A)  written evidence that the assuming insurer has agreed to assume the risk if the contract is procured directly from an assuming insurer;  or
(B)  written evidence that the reinsurer has delegated binding authority to the representative who has agreed to assume the risk and that the representative is qualified to act as a manager under this chapter if the contract is procured through a representative of the assuming insurer, other than an employee.
(b)  Each insurer subject to a contract of reinsurance transacted by a broker is entitled to access to the information maintained by the broker under Subsection (a) and may copy and audit all accounts and records maintained by the broker related to the insurer's business.  The broker shall maintain the information in a form usable by the insurer.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter D. Requirements Relating to Brokers › Section 4152.154. Employment of Person by Insurer and Broker

Sec. 4152.154.  EMPLOYMENT OF PERSON BY INSURER AND BROKER.  A person may not be employed by an insurer and a broker with whom the insurer transacts business unless the broker is:
(1)  under common control with the insurer;  and
(2)  subject to Chapter 823.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.201. Contract Between Manager and Insurer

Sec. 4152.201.  CONTRACT BETWEEN MANAGER AND INSURER.  (a)  A manager and an insurer represented by the manager may enter into a transaction only under a written contract that:
(1)  is executed by a responsible officer of both the manager and the insurer;
(2)  is approved by the insurer's board of directors or attorney in fact;
(3)  specifies the responsibilities of each party;
(4)  identifies the rate, terms, and purpose of each commission, charge, or other fee the manager may assess the insurer;  and
(5)  at a minimum, incorporates the requirements of Sections 4152.202-4152.214.
(b)  Not later than the 30th day before the date the insurer assumes or cedes business through the manager, a copy of the executed contract must be filed with the commissioner for approval.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.202. Termination of Contract

Sec. 4152.202.  TERMINATION OF CONTRACT.  An insurer may:
(1)  terminate a contract entered into under Section 4152.201 for cause on written notice to the manager by certified mail, return receipt requested;  and
(2)  suspend the authority of the manager to assume or cede business during any dispute regarding the cause for termination.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.203. Accounting for Transactions

Sec. 4152.203.  ACCOUNTING FOR TRANSACTIONS.  A manager who enters into a contract with an insurer under Section 4152.201 shall provide accounts to the insurer at least quarterly that accurately detail all material transactions, including information necessary to support all commissions, charges, and other fees received by or owing to the manager.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.204. Management of Money

Sec. 4152.204.  MANAGEMENT OF MONEY.  (a)  A manager shall pay an insurer at least monthly all money due the insurer under a contract entered into under Section 4152.201.
(b)  The manager must hold all money collected for the insurer's account in a fiduciary capacity in a bank that is a qualified United States financial institution.  The manager may not retain more than three months of estimated claims payments and allocated loss adjustment expenses.
(c)  If premiums or contributions are collected on behalf of or for more than one insurer, the manager shall:
(1)  keep a separate account for each insurer;
(2)  maintain a copy of the records for each account;  and
(3)  provide to each insurer on request a copy of the records relating to deposits and withdrawals on behalf of or for that insurer.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.205. Transaction Records

Sec. 4152.205.  TRANSACTION RECORDS.  (a)  For at least 10 years after the expiration of each reinsurance contract transacted by a manager, the manager shall maintain a complete record for each transaction that contains:
(1)  the type of contract, limits, underwriting restrictions, classes of risks, and territory;
(2)  the period of coverage, including effective and expiration dates, cancellation provisions and notice requirements regarding cancellation, and disposition of outstanding reserves on covered risks;
(3)  reporting and settlement requirements regarding balances;
(4)  the rate used to compute the reinsurance premium;
(5)  the name and address of each ceding or assuming insurer;
(6)  the rates of all reinsurance commissions, including the commissions on any retrocessions handled by the manager;
(7)  related correspondence and memoranda;
(8)  proof of placement;
(9)  details regarding retrocessions handled by the manager, as permitted by Section 4152.254, including the identity and address of each retrocessionaire and the respective percentage of each contract assumed;
(10)  financial records, including premium and loss accounts;  and
(11)  if the manager procures a reinsurance contract on behalf of a ceding insurer:
(A)  written evidence that the assuming insurer has agreed to assume the risk if the contract is procured directly from an assuming insurer;  or
(B)  written evidence that the reinsurer has delegated binding authority to the representative who has agreed to assume the risk and that the representative is qualified to act as a manager under this chapter if the contract is procured through a representative of the assuming insurer, other than an employee.
(b)  Each insurer is entitled to access to the information maintained by the manager and may copy all accounts and records maintained by the manager related to the insurer's business.  The manager shall maintain the information in a form usable by the insurer.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.206. Contract Assignment Prohibited

Sec. 4152.206.  CONTRACT ASSIGNMENT PROHIBITED.  A manager may not assign in whole or in part a contract entered into under Section 4152.201.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.207. Compliance With Underwriting and Rating Standards of Insurer

Sec. 4152.207.  COMPLIANCE WITH UNDERWRITING AND RATING STANDARDS OF INSURER.  A manager shall comply with the written underwriting and rating standards established by an insurer with whom the manager has entered into a contract under Section 4152.201 for the acceptance, rejection, or cession of all risks.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.208. Settlement of Claims

Sec. 4152.208.  SETTLEMENT OF CLAIMS.  (a)  This section applies only to a contract entered into under Section 4152.201 that permits a manager to settle claims on behalf of an insurer.
(b)  All claims must be reported to the insurer at least quarterly.
(c)  The manager shall send a copy of the claim file to the insurer at the insurer's request or as soon as it is known that the claim:
(1)  has the potential to exceed the lesser of:
(A)  an amount determined by the commissioner;  or
(B)  the limit set by the insurer;
(2)  involves a coverage dispute;
(3)  may exceed the manager's claims settlement authority;
(4)  has been open for more than six months;  or
(5)  has been closed by payment of the lesser of:
(A)  an amount determined by the commissioner;  or
(B)  the limit set by the insurer.
(d)  A claim file is the joint property of the insurer and manager, except that on an order of liquidation of the insurer the file becomes the sole property of the insurer or the insurer's estate.  The manager is entitled to reasonable access to the claim file and may copy the file on a timely basis.
(e)  Any settlement authority granted to the manager may be terminated for cause on the insurer's written notice by certified mail, return receipt requested, to the manager or on the termination of the contract.  The insurer may suspend the settlement authority during any dispute regarding the cause of termination.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.209. Payment of Interim Profits

Sec. 4152.209.  PAYMENT OF INTERIM PROFITS.  If a contract entered into under Section 4152.201 provides for the sharing of interim profits by the manager, interim profits may not be paid until:
(1)  the first anniversary of the end of each underwriting period for property business, the fifth anniversary of the end of each underwriting period for casualty business, or the expiration of the period set by the executive director for those or other specified kinds of insurance;  and
(2)  the adequacy of reserves on remaining claims has been verified under Section 4152.213.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.210. Audited Statement of Manager's Financial Condition

Sec. 4152.210.  AUDITED STATEMENT OF MANAGER'S FINANCIAL CONDITION.  (a)  A manager shall provide annually to each insurer and reinsurer with whom the manager transacts business an audited statement of the manager's financial condition.
(b)  The statement must be prepared by an independent certified public accountant in a form acceptable to the commissioner.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.211. Disclosure of Relationships With Other Insurers

Sec. 4152.211.  DISCLOSURE OF RELATIONSHIPS WITH OTHER INSURERS.  Before ceding or assuming any business on behalf of an insurer under a contract entered into under Section 4152.201, a manager shall disclose to the insurer any relationship the manager has with another insurer.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.212. Acts of Manager Considered Acts of Insurer

Sec. 4152.212.  ACTS OF MANAGER CONSIDERED ACTS OF INSURER.  The acts of a manager are considered to be the acts of the insurer on whose behalf the manager is acting.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.213. Actuary's Opinion on Adequacy of Loss Reserves

Sec. 4152.213.  ACTUARY'S OPINION ON ADEQUACY OF LOSS RESERVES.  In addition to any other required loss reserve certification, a manager who establishes loss reserves shall provide annually, or more frequently as required by other law, an opinion from an actuary attesting to the adequacy of the loss reserves established for losses incurred and outstanding on business produced by the manager.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.214. Placement of Reinsurance With Unauthorized Reinsurer

Sec. 4152.214.  PLACEMENT OF REINSURANCE WITH UNAUTHORIZED REINSURER.  (a)  Unless the ceding insurer releases the manager in writing from the manager's obligations under this section, a manager who places reinsurance on behalf of an authorized ceding insurer with a reinsurer that is not authorized, accredited, or trusteed in this state under Chapter 493 shall:
(1)  exercise due diligence in inquiring into the financial condition of the reinsurer;
(2)  disclose to the ceding insurer the manager's findings in connection with the inquiry under Subdivision (1); and
(3)  make available to the ceding insurer a copy of the current financial statement of the reinsurer.
(b)  A ceding insurer that releases a manager from the manager's obligations under Subsection (a) assumes those obligations.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2J.007, eff. April 1, 2009.
Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.15, eff. September 1, 2017.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.215. Prohibitions

Sec. 4152.215.  PROHIBITIONS.  (a)  A reinsurance intermediary acting as a manager may not:
(1)  bind retrocessions on behalf of an insurer, except that the manager may bind facultative retrocessions under obligatory retrocessional agreements if the contract entered into with the insurer under Section 4152.201 contains reinsurance underwriting guidelines for those retrocessions that include:
(A)  a list of reinsurers with whom those automatic agreements are in effect;  and
(B)  for each reinsurer:
(i)  the coverages and amounts or percentages that may be reinsured;  and
(ii)  commission schedules;
(2)  commit an insurer to participate in a reinsurance syndicate;
(3)  appoint or contract with a broker without ensuring that the broker is qualified to act as a manager under this chapter;
(4)  without prior approval of the insurer, pay or commit an insurer to pay a claim that exceeds the lesser of:
(A)  an amount specified by the insurer;  or
(B)  one percent of the insurer's policyholders' surplus as of December 31 of the last complete calendar year;  or
(5)  collect a payment from a retrocessionaire or commit an insurer to a claim settlement with a retrocessionaire without prior approval of the insurer.
(b)  If prior approval is given as provided by Subsection (a)(5), a report must be forwarded to the reinsurer as provided by Section 4152.203.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter E. Requirements Relating to Managers › Section 4152.216. Employment of Person by Insurer and Manager

Sec. 4152.216.  EMPLOYMENT OF PERSON BY INSURER AND MANAGER.  A person may not be employed by an insurer and a manager with whom the insurer transacts business unless the manager is:
(1)  under common control with the insurer;  and
(2)  subject to Chapter 823.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 13 - Regulation of Professionals › Subtitle D - Other Professionals › Chapter 4152 - Reinsurance Intermediaries › Subchapter F. Requirements Relating to Insurers › Section 4152.251. Engagement of Services of Unlicensed Broker or Manager

Sec. 4152.251.  ENGAGEMENT OF SERVICES OF UNLICENSED BROKER OR MANAGER.  (a)  Except as provided by Subsection (b), an insurer may not engage the services of a person to act as a broker or manager on the insurer's behalf unless the person holds a license if required by Section 4152.051.
(b)  An insurer, or an employee, attorney, or actuary of an insurer, may negotiate and obtain reinsurance for that insurer without holding a broker or manager license or without using the services of a broker or manager if that insurer, employee, attorney, or actuary does not otherwise hold the person out as a broker or manager or perform the duties or provide the services of a broker or manager.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.