Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter R - WITHDRAWAL PLAN REQUIREMENTS AND PROCEDURES › Section 7.1805 - Contents of Withdrawal Plan

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Except for withdrawing HMOs, which are addressed under subsection (b) of this
				  section and insurers meeting the criteria under §
										7.1804(b)
				  of this title (relating to When a Plan is Required), a withdrawing insurer must
				  file a plan of orderly withdrawal with the Commissioner that is constructed to
				  protect the interests of the people of this state. The plan must be signed by
				  at least one officer of the insurer and must contain the following:
(1) identification, in accordance with the
				  line of insurance designations in §
											7.1803
				  of this title (relating to What Constitutes a Line of Insurance), of the line
				  or lines of insurance being withdrawn;
(2) identification of the policy forms by
				  number and type affected by the withdrawal;
(3) the dates the insurer intends to begin
				  and complete its withdrawal;
(4) an
				  explanation of the reasons for the withdrawal;
(5) provisions for notifying all of the
				  affected Texas policyholders and certificate holders of the dates of the
				  beginning and completion of the withdrawal and how the withdrawal will affect
				  them, including, but not limited to:
(A) a
				  copy of the notice and an explanation of the manner in which the notice will be
				  provided to policyholders and certificate holders;
(B) either affirmation that such notice will
				  be provided within 30 days of the approval of the withdrawal plan or a request
				  to provide the notice at some other specified date or time, and such request
				  must be approved by the Commissioner; and
(C) identification of any provision of the
				  Insurance Code or Texas Administrative Code under which notice is
				  mandated;
(6) provisions
				  for meeting all of the insurer's contractual obligations, including, but not
				  limited to:
(A) notification of all affected
				  agents of the insurer of the date the insurer intends to begin and complete the
				  withdrawal;
(B) for fire and
				  casualty insurers, a statement affirming the insurer's compliance with the
				  provisions of Insurance Code Chapter 4051, Subchapter H, relating to
				  cancellation of agency contracts;
(C) for insurers writing liability coverage
				  as specified in Insurance Code Chapter 551, Subchapter B, a statement affirming
				  the insurer's compliance with the provisions of Insurance Code Chapter 551,
				  Subchapter B, relating to cancellation and nonrenewal of certain liability
				  insurance coverage;
(D) for
				  insurers writing property and casualty coverage as specified in Insurance Code
				  Chapter 551, Subchapter C, a statement affirming the insurer's compliance with
				  the provisions of Insurance Code Chapter 551, Subchapter C, relating to
				  cancellation and nonrenewal of certain property and casualty policies;
				  and
(E) for insurers writing
				  guaranteed renewable or noncancelable coverage, a statement affirming the
				  insurer's compliance with the provisions of Insurance Code §
												1202.051,
				  concerning renewability and continuation of individual health insurance
				  policies, and Insurance Code §
												1501.109,
				  concerning refusal to renew and discontinuation of coverage, and any
				  corresponding regulations;
(7) provisions for providing service to the
				  insurer's Texas policyholders and claimants;
(8) information on Texas business, including:
(A) the total annual premium volume and the
				  number of policies and certificates and covered persons in Texas by county for
				  each line to be withdrawn and the estimated total annual premium volume and
				  number of policies and certificates and covered persons in Texas by county
				  after withdrawal;
(B) an estimate
				  of what percentage of the market for each affected line of insurance in each
				  county the withdrawal impacts;
(C)
				  any other information necessary to assist the Commissioner in determining
				  whether a market availability problem is created by the withdrawal;
				  and
(D) if an insurer is unable to
				  provide the exact number of policies and certificates and covered persons, the
				  insurer must provide estimates and explain how the estimates were
				  determined;
(9)
				  provisions for identifying policyholders or certificate holders of special
				  circumstances;
(10) identification
				  of any third party contracts which may provide for the continuity of care to
				  enrollees of special circumstances;
(11) number of and estimated amount of all
				  losses outstanding in Texas, including claims incurred but not
				  reported;
(12) a plan to handle the
				  losses specified in paragraph (11) of this subsection, including, but not
				  limited to:
(A) identification of what assets
				  will be available for paying outstanding incurred but not reported claims,
				  claims in the course of settlement, and associated loss adjustment expenses;
				  and
(B) identification of who
				  specifically will administer the run off of the business;
(13) if Texas policyholders or certificate
				  holders are to be reinsured, the filing of a reinsurance agreement under all
				  statutory and regulatory requirements and, when applicable, the filing of an
				  assumption certificate;
(14)
				  provisions for meeting any applicable statutory obligations, including, but not
				  limited to:
(A) payment of any guaranty fund
				  assessments;
(B) participation in
				  any assigned risk plan, pool, fund, facility, or joint underwriting
				  arrangement; and
(C) payment of any
				  taxes;
(15) a list of any
				  other products the insurer will continue to offer in Texas; and
(16) affirmation that the insurer will comply
				  with §
											7.1808
				  of this title (relating to Requirements to Resume Writing Insurance), as
				  applicable.