reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter A - EXAMINATION AND FINANCIAL ANALYSIS › Section 7.85 - Audited Financial Reports

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				  The following words and terms, when used in this section, will have the
				  following meanings, unless the context clearly indicates otherwise.
(1) Accountant--An independent certified
				  public accountant or accounting firm that meets the requirements of Insurance
				  Code §
											401.014.
(2) Audited Financial Report--The annual
				  audit report required by Insurance Code Chapter 401, Subchapter A.
(3) Commissioner--The commissioner of
				  insurance.
(4) TDI--The Texas
				  Department of Insurance.
(5)
				  Examiner--Staff appointed by the commissioner under Insurance Code Chapter 401,
				  Subchapter C.
(6) GAAS--Generally
				  Accepted Auditing Standards. The standards adopted by the American Institute of
				  Certified Public Accountants or Public Company Accounting Oversight Board to
				  conduct an audit and to ensure the quality of the performance by accountants
				  who are engaged in an audit of financial statements.
(7) Material--As defined in the NAIC's
Accounting Practices and Procedures Manual
under §
											7.18
				  of this title.
(8) NAIC--The
				  National Association of Insurance Commissioners.
(9) Statutory Examination--An examination
				  performed by TDI's examiners or other persons or firms retained by TDI
				  specifically for examination of insurers, corporations, or
				  associations.
(10) Work Papers--The
				  records kept by the accountant supporting that accountant's audit opinion,
				  including the audit records and the accountant's audit planning records; and
				  any record of communications related to the audit between the accountant and
				  the insurer under Insurance Code §
											401.020.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter A - EXAMINATION AND FINANCIAL ANALYSIS › Section 7.87 - Risk Pool Audits

Current through Reg. 49, No. 28; July 12, 2024
(a) The Local
				  Government Code, Chapter 172, Texas Political Subdivisions Uniform Group
				  Benefits Program, authorizes certain political subdivisions to create risk
				  pools to provide health and accident coverage for political subdivision
				  officials, employees, and retirees.
(b) The Local Government Code, §
										172.010, requires that an
				  independent auditor perform an annual audit of a risk pool, and that the
				  trustees of the risk pool file a copy of the independent auditor's report with
				  the Texas Department of Insurance.
(c) The independent auditor's report of the
				  risk pool required by the Local Government Code shall be filed within six
				  months of the end of the fiscal year of the risk pool with the Financial
				  Monitoring Division, Financial Program, Texas Department of Insurance, P.O. Box
				  149104, MC 303-1A, Austin, Texas 78714-9104.
(d) The risk pool audit reports can be
				  inspected during regular business hours at the Texas Department of Insurance,
				  Financial Monitoring Division, 333 Guadalupe, Austin, Texas.
(e) Persons desiring copies of such audit
				  reports can obtain copies from the Texas Department of Insurance, Financial
				  Monitoring Division, Financial Program, P.O. Box 149104, MC 303-1A, Austin,
				  Texas 78714-9104.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter A - EXAMINATION AND FINANCIAL ANALYSIS › Section 7.88 - Independent Audits of Insurer and HMO Financial Statements and Insurer and HMO Internal Control over Financial Reporting

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. The purpose of this section is
				  to improve the Texas Department of Insurance's surveillance of the financial
				  condition of insurers and HMOs by:
(1)
				  specifying the requirements of an annual audit by an accountant of the
				  financial statements reporting the financial condition and the results of
				  operations of each insurer or HMO;
(2) requiring communication of internal
				  control related matters noted in an audit;
(3) requiring an insurer or HMO that is
				  required to file an annual audited financial report under Insurance Code
				  Chapter 401, Subchapter A, to have an audit committee; and
(4) requiring certain insurer or HMO
				  management to report on internal control over financial reporting.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter A - EXAMINATION AND FINANCIAL ANALYSIS › Section 7.89 - Corporate Governance Annual Disclosure

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. The purpose of this section is
				  to implement Insurance Code Chapter 831 by providing the procedures for filing
				  and the content of the corporate governance annual disclosures.
(b) Definitions. The definitions in Insurance
				  Code §
										831.0002 apply to this
				  section. Consistent with Insurance Code §
										831.0002(3),
				  when used in this section the term "insurer" includes Health Maintenance
				  Organizations. In addition, the following terms are defined as used in this
				  section:
(1) Board--insurer's board of
				  directors;
(2) CGAD--Corporate
				  Governance Annual Disclosure;
(3)
				  Senior Management--any corporate officer reporting information to the board of
				  directors at regular intervals or providing this information to shareholders or
				  regulators, and includes, but is not limited to, the chief executive officer,
				  chief financial officer, chief operations officer, chief procurement officer,
				  chief legal officer, chief information officer, chief technology officer, chief
				  revenue officer, chief visionary officer, or any other senior level executive;
(4) TDI--Texas Department of
				  Insurance.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter B - INSURANCE HOLDING COMPANY SYSTEMS › Section 7.209 - Form A

Current through Reg. 49, No. 28; July 12, 2024
(a) Statement
				  regarding the acquisition or change of control of a domestic insurer. Submit
				  information concerning the acquisition or change of control of a domestic
				  insurer as specified in subsections (b) - (n) and (p) of this section. Provide
				  the information required in subsections (o) and (p) of this section for a
				  divestiture of control. Separately submit supplemental information, necessary
				  to evaluate the enterprise risk to the insurer under Insurance Code §
										823.201(e),
				  as specified in subsections (r) - (z) of this section. An applicant may submit
				  its application and supplemental information on a form made available by the
				  department.
(b) Insurers and method
				  of acquisition.
(1) State the name of the
				  acquiring person (applicant), the date the application is filed, and the name,
				  title, address, and telephone number of the individual to whom notices and
				  correspondence concerning this statement should be addressed.
(2) State the name and address of the
				  domestic insurer to which this application relates and a brief description of
				  how control is to be acquired.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter B - INSURANCE HOLDING COMPANY SYSTEMS › Section 7.210 - Form B

Current through Reg. 49, No. 28; July 12, 2024
(a) Insurance
				  holding company system registration statement.
Attached
					 Graphic
(b)
				  Identity and control of registrant. Furnish the exact name of each insurer
				  registering or being registered ("the registrant"), the home office address and
				  principal executive offices of each; the date on which each registrant became
				  part of the insurance holding company system; and the method(s) by which
				  control of each registrant was acquired and is maintained.
(c) Organizational chart. Furnish a chart or
				  listing clearly presenting the identities of and interrelationships among all
				  affiliated persons within the insurance holding company system, including all
				  affiliated persons as defined in §7.202(a)(2) of this title
				  (relating to Definitions). The chart or listing should show the percentage of
				  each class of voting securities of each affiliate which is owned, directly or
				  indirectly, by another affiliate. If control of any person within the system is
				  maintained other than by the ownership or control of voting securities,
				  indicate the basis of the control. As to each person specified in the chart or
				  listing, indicate the type of organization (e.g., corporation, trust,
				  partnership) and the state or other jurisdiction of domicile.
(d) The ultimate controlling person. As to
				  the ultimate controlling person (that person which is not controlled by another
				  person) in the insurance holding company system, furnish the following
				  information:
(1) name;
(2) home office address;
(3) principal executive office address;
(4) the organizational structure of
				  the person, i.e., corporation, partnership, individual, trust, etc.; together
				  with a conformed copy of the charter or articles of incorporation and its
				  bylaws;
(5) the principal business
				  of the person;
(6) the name and
				  address of any person who holds or owns 10 percent or more of any class of
				  voting security, the class of the security, the number of shares held of record
				  or known to be beneficially owned, and the percentage of class so held or
				  owned; and
(7) if court proceedings
				  looking toward a reorganization or liquidation are pending, indicate the title
				  and location of the court, the nature of proceedings, and the date when
				  commenced.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter B - INSURANCE HOLDING COMPANY SYSTEMS › Section 7.211 - Form C

Current through Reg. 49, No. 28; July 12, 2024
(a) Summary of
				  Material Changes to Registration Statement is required as follows.
Attached
					 Graphic
(b)
				  Furnish a brief description of all items in the current annual registration
				  statement which represent material changes from the prior year's annual
				  registration statement. The description must be in a manner permitting proper
				  evaluation by the commissioner, and must include specific references to the
				  items in the annual registration statement and to the terms
				  contained.
(c) Changes occurring
				  under §
										7.210(c)
				  of this title (relating to Form B) in the percentage of each class of voting
				  securities held by each affiliate need only be included where the changes
				  result in ownership or holdings of 10 percent or more of voting securities,
				  loss or transfer of control, or acquisition or loss of partnership
				  interest.
(d) Changes occurring
				  under §
										7.210(e)
				  of this title need only be included where an individual is, for the first time,
				  made a director or executive officer of the ultimate controlling person; a
				  director or executive officer terminates his or her responsibilities with the
				  ultimate controlling person; or in the event an individual is named president
				  of the ultimate controlling person.
(e) If a transaction disclosed on the prior
				  year's annual registration statement has been changed, the nature of the change
				  must be included. If a transaction disclosed on the prior year's annual
				  registration statement has been effectuated, furnish the mode of completion and
				  any flow of funds between affiliates resulting from the transaction.
(f) The insurer must furnish a statement that
				  transactions entered into since the filing of the prior year's annual
				  registration statement are not part of a plan or series of like transactions
				  whose purpose is to avoid statutory threshold amounts and the review that might
				  otherwise occur.
(g) Signature and
				  certification are required as follows.
Attached
					 Graphic
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter B - INSURANCE HOLDING COMPANY SYSTEMS › Section 7.212 - Form C

Current through Reg. 49, No. 28; July 12, 2024
(a) Prior notice of
				  a transaction. Prior notice of a transaction is required as follows.
Attached
					 Graphic
(b)
				  Identity of parties to transaction. Furnish the following information for each
				  of the parties to the transaction:
(1)
				  name;
(2) home office
				  address;
(3) principal executive
				  office address;
(4) the
				  organizational structure, i.e. corporation, partnership, individual, trust,
				  etc.;
(5) a description of the
				  nature of the parties' business operations;
(6) relationship, if any, of other parties to
				  the transaction to the insurer filing the notice, including any ownership or
				  debtor/creditor interest by any other parties to the transaction in the insurer
				  seeking approval, or by the insurer filing the notice in the affiliated
				  parties;
(7) where the transaction
				  is with a non-affiliate, the name(s) of the affiliate(s) which will receive, in
				  whole or in substantial part, the proceeds of the transaction.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter B - INSURANCE HOLDING COMPANY SYSTEMS › Section 7.214 - Form C

Current through Reg. 49, No. 28; July 12, 2024
(a) Enterprise Risk
				  Report is required as follows.
Attached
					 Graphic
(b) The
				  registrant/applicant, to the best of its knowledge and belief, must provide
				  information regarding the following areas that could produce enterprise risk as
				  defined in §
										7.202 of
				  this title (relating to Definitions), provided such information is not
				  disclosed in the Insurance Holding Company System Annual Registration Statement
				  filed on behalf of itself or another insurer for which it is the ultimate
				  controlling person:
(1) any material
				  developments regarding strategy, internal audit findings, compliance, or risk
				  management affecting the insurance holding company system;
(2) acquisition or disposal of insurance
				  entities and reallocation of existing financial or insurance entities within
				  the insurance holding company system;
(3) any changes of shareholders of the
				  insurance holding company system exceeding 10 percent or more of voting
				  securities;
(4) developments in
				  various investigations, regulatory activities, or litigation that may have a
				  significant bearing or impact on the insurance holding company
				  system;
(5) business plan of the
				  insurance holding company system and summarized strategies for the next 12
				  months;
(6) identification of
				  material concerns of the insurance holding company system raised by supervisory
				  college, if any, in the last year;
(7) identification of insurance holding
				  company system capital resources and material distribution patterns;
(8) identification of any negative movement,
				  or discussions with rating agencies which may have caused, or may cause,
				  potential negative movement in the credit ratings and individual insurer
				  financial strength ratings assessment of the insurance holding company system
				  (including both the rating score and outlook);
(9) information on corporate or parental
				  guarantees throughout the holding company and the expected source of liquidity
				  should the guarantees be called; and
(10) identification of any material activity
				  or development of the insurance holding company system that, in the opinion of
				  senior management, could adversely affect the insurance holding company
				  system.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter B - INSURANCE HOLDING COMPANY SYSTEMS › Section 7.215 - Group Capital Calculation

Current through Reg. 49, No. 28; July 12, 2024
(a) The ultimate
				  controlling person of an insurer in an insurance holding company system for
				  which Texas is the lead state and that is described by paragraphs (1) or (2) of
				  this subsection must annually file a group capital calculation report:
(1) an insurance holding company system that
				  is subject to a covered agreement, defined by Insurance Code Chapter 493,
				  Subchapter C, concerning Credit for Reinsurance; or
(2) an insurance holding company system that
				  is required by the United States Federal Reserve Board to perform a group
				  capital assessment, unless the Federal Reserve Board shares that group capital
				  assessment with the Texas Department of Insurance and under terms of an
				  information sharing agreement.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter B - INSURANCE HOLDING COMPANY SYSTEMS › Section 7.216 - Liquidity Stress Test Framework

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. This
				  section specifies the requirements for the ultimate controlling person of an
				  insurance holding company system to submit a liquidity stress test framework
				  necessary to report information as required by Insurance Code §
										823.0596.
(b) Liquidity stress test framework. The
				  commissioner adopts by reference the liquidity stress test framework as adopted
				  and published by the National Association of Insurance Commissioners (NAIC).
				  The liquidity stress test framework is available on the department's
				  website.
(c) Scope criteria. The
				  scope criteria are the designated criteria and thresholds described in the
				  liquidity stress test framework as adopted by reference in subsection (b) of
				  this section.
(d) Reporting
				  template. The reporting template an insurer must use is described in the
				  liquidity stress test framework as adopted in subsection (b) of this
				  section.
(e) Filing. Using the
				  reporting template described in the liquidity stress test framework adopted by
				  reference in subsection (b) of this section, the ultimate controlling person of
				  an insurer must submit a liquidity stress test framework filing on or before
				  June 30 of each year, using the appropriate reporting template in an electronic
				  format acceptable to TDI. The electronic filing address is provided on TDI's
				  website at
www.tdi.texas.gov
. Copies of
				  the latest editions of the reporting templates and related instruction manuals
				  adopted and published by the NAIC may be obtained from the NAIC or from the
				  Texas Department of Insurance, Financial Regulation Division.
(f) Exemption. Only after consultation with
				  other state insurance commissioners will the commissioner exempt from the
				  filing requirement a data year that an insurer would otherwise be required to
				  submit under subsection (e) of this section.
(g) Conflicts. In the event of a conflict
				  between the liquidity stress test framework adopted and published by the NAIC
				  and the Insurance Code, any TDI rule, or any specific requirement of this
				  section, the Insurance Code, TDI rule, or specific requirement of this section
				  takes precedence and in all respects controls. The requirements of this section
				  do not repeal, modify, or amend any TDI rule or any Insurance Code
				  provision.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter D - RISK-BASED CAPITAL AND SURPLUS AND OTHER REQUIREMENTS › Section 7.402 - Risk-Based Capital and Surplus Requirements for Insurers and HMOs

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. The purpose of implementing a
				  risk-based capital and surplus provision is to require a minimum level of
				  capital and surplus to absorb the financial, underwriting, and investment risks
				  assumed by a carrier.
(b) Scope.
(1) Life companies. This section applies to
				  any carrier authorized to do business in Texas as an insurance company that
				  writes or assumes a life insurance or annuity contract or assumes liability on
				  or indemnifies one person for any risk under an accident and health insurance
				  policy, or any combination of these policies, in an amount that exceeds $10,000
				  including: capital stock companies, mutual life companies, limited purpose
				  subsidiary life insurance companies, and stipulated premium insurance
				  companies.
(2) Property and
				  casualty companies. This section applies to all domestic, foreign, and alien
				  property and casualty companies subject to the provisions of Insurance Code
				  §
											822.210
				  and §
											982.106,
				  including county mutual insurance companies that do not meet the express
				  criteria contained in Insurance Code §
											912.056(f),
				  but excluding monoline financial guaranty insurers, monoline mortgage guaranty
				  insurers, title insurers, and those insurers subject to Insurance Code §
											822.205.
(3) Health maintenance organizations and
				  certain health carriers. This section applies to all domestic and foreign
				  health maintenance organizations subject to the provisions of Insurance Code
				  Chapter 843 and carriers that file the NAIC Health Annual Statement with TDI
				  under TDI filing requirements.
(4)
				  Fraternal benefit societies. This section applies to all domestic and foreign
				  fraternal benefit societies.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter D - RISK-BASED CAPITAL AND SURPLUS AND OTHER REQUIREMENTS › Section 7.403 - Transition Period for Certain County Mutual Insurance Companies

Current through Reg. 49, No. 28; July 12, 2024
(a) This section applies to a county mutual
				  insurance company that cedes 85 percent or more of the company's direct and
				  assumed risks to one or more nonaffiliated reinsurers and the company is
				  otherwise required to comply with the Insurance Code §
										912.056(f).
(b) A county mutual insurance company shall
				  comply with §
										7.402
				  of this subchapter (relating to Risk-Based Capital and Surplus Requirements for
				  Insurers and HMOs) unless the company meets the express criteria contained in
				  the Insurance Code §
										912.056(f).
(c) A county mutual insurance company subject
				  to the Insurance Code §
										912.056(f)
				  that on December 31, 2009, had less than the minimum unencumbered surplus
				  required by §912.056(f) must:
(1) not
				  later than December 31, 2010, have increased the amount of its unencumbered
				  surplus by at least 20 percent of the difference between the minimum amount
				  required by §912.056(f) and the amount held by the company on December 31,
				  2009;
(2) not later than December
				  31, 2011, have increased the amount of its unencumbered surplus by at least 40
				  percent of the difference between the minimum amount required by
				  §912.056(f) and the amount held by the company on December 31,
				  2009;
(3) not later than December
				  31, 2012, have increased the amount of its unencumbered surplus by at least 60
				  percent of the difference between the minimum amount required by
				  §912.056(f) and the amount held by the company on December 31,
				  2009;
(4) not later than December
				  31, 2013, have increased the amount of its unencumbered surplus by at least 80
				  percent of the difference between the minimum amount required by
				  §912.056(f) and the amount held by the company on December 31, 2009;
				  and
(5) not later than December 31,
				  2014, have increased the amount of its unencumbered surplus by at least 100
				  percent of the difference between the minimum amount required by
				  §912.056(f) and the amount held by the company on December 31,
				  2009.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter E - ADMISSION PROCEDURES FOR FOREIGN INSURANCE COMPANIES › Section 7.501 - Reservation of Name

Current through Reg. 49, No. 28; July 12, 2024
A foreign or alien insurance carrier seeking admission to
					 Texas must request a reservation of name and submit such fees therefor as are
					 required by law.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter E - ADMISSION PROCEDURES FOR FOREIGN INSURANCE COMPANIES › Section 7.502 - General Requirements

Current through Reg. 49, No. 28; July 12, 2024
The applicant is required to comply with the
					 following.
(1) Fees. Submit such other
				  fees as are required by law.
(2)
				  Certificate of authority. The applicant must submit an application for a
				  certificate of authority. The commissioner of insurance will provide forms for
				  this purpose (see §
										7.507(a)
				  of this title (relating to Forms Incorporated by Reference)). The applicant
				  must submit a certified copy of the certificate of authority issued by its
				  state of domicile.
(3) Documents
				  required by law. The applicant must submit all documents required by law. The
				  commissioner will provide a listing of these documents.
(4) Financial condition. The applicant must
				  satisfy the agency that its financial condition is such that it meets the
				  requirements of applicable law. The commissioner will provide a listing of
				  these requirements. It also must submit the latest examination report certified
				  under original seal by the proper state official of its home state.
(5) Officers, directors, and other
				  executives. The applicant must submit information which demonstrates in a
				  credible fashion that its officers, directors, and other executives are fit,
				  competent, and possess a good reputation such that the officers, directors, and
				  other executives meet the requirements of law. The commissioner will provide
				  forms to the applicant to be completed to facilitate this purpose (see §
										7.507(b)
				  of this title (relating to Forms Incorporated by Reference)).
(6) Agent for service. The applicant must
				  appoint, if required by law, an agent in Texas for acceptance on its behalf of
				  service of process in any legal action in which it is involved. The
				  commissioner will provide forms for this purpose (see §
										7.507(c)
				  of this title (relating to Forms Incorporated by Reference)).
(7) Certification of deposit. The applicant
				  must submit a certification of deposits held by any other state where
				  applicable and required by law.
(8)
				  Plan of operation in Texas. The applicant must submit a detailed written
				  statement of its plan for operation in Texas.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter E - ADMISSION PROCEDURES FOR FOREIGN INSURANCE COMPANIES › Section 7.503 - Certificate of Similarity

Current through Reg. 49, No. 28; July 12, 2024
Unless precluded by controlling law, if a document is
					 required to be certified and certification is not available, the applicant, in
					 lieu thereof, may submit a certificate of similarity stating under oath that
					 the document submitted therewith is the same as the document required. The
					 commissioner will provide forms for this purpose (see §
										7.507(d)
					 of this title (relating to Forms Incorporated by Reference)). Should any
					 alteration be made in the document, the applicant is required to immediately
					 file such alteration with the State Board of Insurance.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter E - ADMISSION PROCEDURES FOR FOREIGN INSURANCE COMPANIES › Section 7.504 - Disposition of Applications

Current through Reg. 49, No. 28; July 12, 2024
(a) The
				  commissioner shall appoint an admissions examiner to review applications for
				  admission. After review, if the admissions examiner can recommend that the
				  application be approved in all respects, the admissions examiner shall prepare
				  and forward to the commissioner a memorandum specifying a recommendation. A
				  copy of the memorandum shall be sent to the applicant. If unable to recommend
				  that the application should be approved based on all relevant information, the
				  admissions examiner shall cause a hearing to be set on the commissioner's
				  hearings docket for determination of the application. The commissioner may
				  cause a hearing to be set on his own motion.
(b) Subsequent to the procedure specified in
				  subsection (a) of this section, the commissioner shall enter an order approving
				  or disapproving the application.
(c) The commissioner's order may be appealed
				  to the board as provided in Chapter 1, Subchapter A of this title (relating to
				  Rules of Practice and Procedure) and the Insurance Code, Article
				  1.04(d).
(d) At any time, the
				  commissioner or admissions examiner may request additional information from the
				  applicant to determine compliance with applicable law.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter E - ADMISSION PROCEDURES FOR FOREIGN INSURANCE COMPANIES › Section 7.505 - Applicant To Submit Information

Current through Reg. 49, No. 28; July 12, 2024
The applicant is obligated to submit any information
					 requested by the commissioner for the purpose of determining whether the
					 application meets all requirements for admission (see §
										7.507(e)
					 of this title (relating to Forms Incorporated by Reference)). The applicant
					 must satisfy the commissioner that all requirements of the retaliatory
					 provisions of the Insurance Code, Article 21.46, are met.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter E - ADMISSION PROCEDURES FOR FOREIGN INSURANCE COMPANIES › Section 7.506 - Documents To Be Verified

Current through Reg. 49, No. 28; July 12, 2024
Each application submitted shall be accompanied by a sworn
					 affidavit from the president or secretary of the applicant stating that the
					 matters contained and assertions made in the application are true, correct, and
					 complete.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter E - ADMISSION PROCEDURES FOR FOREIGN INSURANCE COMPANIES › Section 7.508 - Biographical Affidavit Requirements

Current through Reg. 49, No. 28; July 12, 2024
Form Number FIN354, Biographical Affidavit and Fingerprint
					 Requirements, adopted in §
										7.507
					 of this title (relating to Forms Incorporated by Reference), is only required
					 on request from the Texas Department of Insurance.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.601 - Scope

Current through Reg. 49, No. 28; July 12, 2024
(a) This subchapter implements Insurance Code
				  Chapter 493.
(b) This subchapter
				  applies to all insurers engaged in the business of ceding and assuming
				  insurance in this state.
(c) This
				  subchapter does not apply to the reinsurance of all or part of the liability of
				  a policy of title insurance, except as provided under Insurance Code §
										2551.3055.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.602 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this
					 subchapter, have the following meanings, unless the context clearly indicates
					 otherwise.
(1) Assuming insurer--An
				  insurer as defined in Insurance Code §
										493.001. The term
				  includes an insurer that assumes:
(A) the
				  insurance risk of loss of the ceding insurer under the ceding insurer's
				  indemnity reinsurance agreement, or
(B) the policy obligations of the ceding
				  insurer under an assumption reinsurance agreement.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.603 - Prohibition against Reinsurance with Assuming Insurers not Authorized to do the Business of Insurance in Texas

Current through Reg. 49, No. 28; July 12, 2024
Notwithstanding any other section in this subchapter, an
					 insurer operating under Insurance Code §
										841.204
					 having less than the minimum capital and surplus required for the formation of
					 new companies under Insurance Code §
										841.054
					 is prohibited from ceding an insurance risk of loss or part of an insurance
					 risk of loss with any assuming insurer not authorized to do the business of
					 insurance in Texas.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.604 - Assumption Reinsurance

Current through Reg. 49, No. 28; July 12, 2024
(a) An insurer
				  authorized to do the business of insurance in this state must, prior to
				  entering into an assumption reinsurance agreement for its entire outstanding
				  business, submit to TDI the written plan of reinsurance, including the
				  assumption reinsurance agreement, and all necessary documents to allow the
				  Commissioner to determine that the interests of all policyholders are fully
				  protected as follows:
(1) a letter signed by
				  a company officer, and including the phone number and email of the appropriate
				  company contact individual:
(A) explaining the
				  transaction;
(B) identifying all
				  parties involved and specifying which are affiliates;
(C) stating the intentions of all parties
				  post transaction;
(D) stating
				  whether the assumption reinsurance transaction is all of the ceding company's
				  direct insurance exposure or only a portion and whether the transaction cedes
				  all direct insurance exposure, the ceding company's plans going forward to
				  maintain its certificate of authority or dissolve the entity;
(E) providing the date that any required
				  assumption certificate or endorsement was filed with TDI;
(F) stating whether the policy reserves
				  associated with the assumption reinsurance agreement are greater than 10
				  percent of the assuming insurer's total policyholder surplus or 25 percent of
				  the ceding insurer's total assets;
(G) stating whether there is a settlement fee
				  or consideration associated with the assumption reinsurance
				  agreement;
(H) stating whether any
				  parties to the agreement have assets deposited with or pledged to TDI and, if
				  applicable, the party's expectations related to such deposits; and
(I) addressing any due diligence issues,
				  including disclosure of any currently owned assets that may be nonadmitted as a
				  result of the assumption reinsurance;
(J) stating the number of policies to be
				  reinsured broken down by type of policy, form number, or other appropriate
				  means;
(K) specifying in detail any
				  changes in the policy coverage, provisions, rights or privileges, or in the
				  actuarial reserving basis; and
(L)
				  specifying a "date certain" for the effective date and contain the date by
				  which all of the assumption certificates will be delivered or mailed (for group
				  policies, each individual certificate holder must receive an assumption
				  certificate);
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.605 - Fees

Current through Reg. 49, No. 28; July 12, 2024
The fees for submitting assumption reinsurance agreements
					 are set forth in §
										7.1301
					 of this title.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.606 - Accredited Assuming Insurer

Current through Reg. 49, No. 28; July 12, 2024
(a) An
				  assuming insurer authorized by its state of domicile to assume the kind or
				  kinds of insurance ceded to it, but which is not authorized to transact the
				  business of insurance in this state, may apply for accreditation and such
				  assuming insurer may be referred to as the "applicant" where appropriate in
				  this section. A ceding insurer which cedes business to an accredited assuming
				  insurer may receive the same credit for reinsurance as either an asset or a
				  deduction from liability that the ceding insurer would be entitled to receive
				  from ceding to an authorized assuming insurer.
(b) To apply for accreditation, the applicant
				  must submit to TDI the following:
(1)
				  applicant information, including the applicant's:
(A) full name;
(B) physical address for its principal place
				  of business;
(C) mailing
				  address;
(D) NAIC number, United
				  States federal tax identification number, and International Securities
				  Identification Number, as applicable; and
(E) contact individual's name, phone number,
				  and email;
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.607 - Trusteed Assuming Insurer

Current through Reg. 49, No. 28; July 12, 2024
(a) Credit for
				  ceded insurance. Pursuant to Insurance Code §
										493.102(a)(3),
				  a ceding insurer may be allowed credit for insurance risk of loss ceded to an
				  assuming insurer that maintains a trust fund in a qualified United States
				  financial institution for the payment of the valid claims of its United States
				  policyholders and ceding insurers, their assigns, and successors in interest.
				  Initially on establishing the trust and not later than March 1 of each
				  subsequent year the assuming insurer must report to TDI information
				  substantially the same as that required to be reported on the NAIC annual
				  statement form by authorized insurers to enable TDI to determine the
				  sufficiency of the trust fund, and the following information:
(1) the assuming insurer's:
(A) full name;
(B) physical address for its principal place
				  of business;
(C) mailing
				  address;
(D) NAIC number, United
				  States federal tax identification number, and International Securities
				  Identification Number, as applicable; and
(E) contact individual's name, phone number,
				  and email; and
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.608 - Insurance Ceded to Assuming Insurers not Authorized in Texas, or Accredited, Trusteed, or Certified under this Subchapter

Current through Reg. 49, No. 28; July 12, 2024
(a) A ceding insurer domiciled in this state
				  may not take credit for insurance ceded to an insurer that is not authorized in
				  Texas, accredited in Texas, trusteed in Texas, or certified in Texas, except as
				  authorized under Insurance Code §
										493.104.
(b) The funds held by or on behalf of the
				  ceding insurer must be held as required under Insurance Code §
										493.104(b)
				  and must be segregated from other operating accounts and securities invested by
				  the ceding insurer. The segregated account must clearly acknowledge ownership
				  by the company on whose annual statement these assets are listed. The ceding
				  insurer must maintain at all times a subsidiary ledger detailing by each
				  assuming insurer all transactions pertinent to each cash account or security
				  held under the respective reinsurance agreements.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.609 - Trust Agreement Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions
				  for this section. The following words and terms, when used in this section,
				  have the following meanings, unless the context clearly indicates otherwise.
(1) Beneficiary--The entity for whose benefit
				  the trust has been established; the ceding insurer and any successor by
				  operation of law of the ceding insurer including, without limitation, any
				  liquidator, receiver, conservator, or supervisor.
(2) Grantor--The entity that has established
				  a trust for the sole benefit of the beneficiary; the assuming
				  insurer.
(3) Obligations--The sum
				  total of trust property as set forth in subsection (b)(11) of this section
				  which, unless specifically excluded under the reinsurance agreement is:
(A) reinsured losses and allocated loss
				  expenses paid by the ceding insurer, but not recovered from the assuming
				  insurer;
(B) reserves for reinsured
				  losses reported and outstanding;
(C) reserves for reinsured losses incurred
				  but not reported and corresponding allocated loss expenses;
(D) reserves for unearned premiums;
				  and
(E) reserves for mortality and
				  morbidity.
(4) Trustee--A
				  qualified United States financial institution.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.610 - Letter of Credit Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a) The letter
				  of credit must be clean, irrevocable, and unconditional, and issued or
				  confirmed by a qualified United States financial institution. The letter of
				  credit must contain an issue date and must stipulate that the beneficiary need
				  only draw a draft under the letter of credit and present it to obtain funds and
				  that no other document need be presented. The letter of credit must also
				  indicate that it is not subject to any condition or qualifications outside of
				  the letter of credit. In addition, the letter of credit itself must not contain
				  reference to any other agreements, documents, or entities, except as provided
				  in subsection (h)(1) of this section.
(b) The heading of the letter of credit may
				  include a boxed section that contains the name of the applicant and other
				  appropriate notations to provide a reference for such letter of credit. If
				  included, the boxed section must be clearly marked to indicate that such
				  information is for internal identification purposes only. Neither the boxed
				  section nor the internal identification may affect the terms of the letter of
				  credit.
(c) The letter of credit
				  must contain a statement to the effect that the obligation of the qualified
				  United States financial institution under the letter of credit is in no way
				  contingent on reimbursement.
(d)
				  The term of the letter of credit must be for at least one year and must contain
				  an evergreen clause that prevents the expiration of the letter of credit
				  without written notice from the issuer. The evergreen clause must provide for a
				  period of no less than 30 days' written notice prior to expiry date or
				  nonrenewal.
(e) The letter of
				  credit must state that:
(1) it is subject to
				  and governed by either the laws of the State of Texas, the laws of the state of
				  domicile of the issuing bank, or the Uniform Customs and Practice for
				  Documentary Credits of the International Chamber of Commerce (UCP);
(2) in the event of any conflict, whether the
				  laws of Texas or the laws of the state in which the issuing bank is domiciled
				  will apply; and
(3) all drafts
				  drawn under the letter of credit are presentable at an office in the United
				  States of a qualified United States financial institution.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.612 - Reinsurance Agreements Affected

Current through Reg. 49, No. 28; July 12, 2024
The requirements of this subchapter, as amended, apply to
					 all reinsurance agreements entered into or renewed on or after July 1, 2018, or
					 such earlier date as the parties may agree. Unless the parties have agreed to
					 be covered by the requirements of this subchapter prior to July 1, 2018, the
					 requirements for a reinsurance agreement that was entered into or renewed
					 before July 1, 2018, are governed by §§7.601-7.612, and §
										7.614
					 of this title as those sections existed immediately prior to that date and
					 those rules are continued in effect for that purpose.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.614 - Posting of Information, Submissions, and Adoption of Forms by Reference

Current through Reg. 49, No. 28; July 12, 2024
(a) Information and filings required under
				  this subchapter must be submitted to the Commissioner or TDI on paper or in an
				  electronic format that is acceptable to TDI. TDI will specify acceptable
				  electronic submission formats and methods on the TDI website or the
				  form.
(b) TDI adopts by reference
				  the following standard forms for use by all insurers that are subject to the
				  provisions of this subchapter and Insurance Code Chapter 493. Bracketed
				  information in the forms, including TDI submission locations, submission
				  formats and methods, and contact information, is subject to change, and persons
				  submitting the forms must confirm that they are using the most recent online
				  version before submitting. These forms are available on the TDI website. These
				  forms are more specifically identified as follows:
(1) Form AR-1, Certificate of Accredited
				  Assuming Insurer;
(2) Form CR-1,
				  Certificate of Certified Reinsurer;
(3) Form CR-F Reinsurance - Property/Casualty
				  Business;
(4) Form CR-S Reinsurance
				  - Life Insurance, Annuities, Deposit Funds and Other Liabilities, and Accident
				  and Health Insurance; and
(5) Form
				  RJ-1, Certificate of Reinsurer Domiciled in Reciprocal Jurisdiction.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 7 - CORPORATE AND FINANCIAL REGULATION › Subchapter F - REINSURANCE › Section 7.615 - Credit for Reinsurance-Reciprocal Jurisdictions

Current through Reg. 49, No. 28; July 12, 2024
(a) The Commissioner, under Insurance Code
				  § 493.108, concerning Credit Allowed for Certain Eligible Assuming
				  Insurers, shall allow credit for reinsurance ceded by a domestic insurer to an
				  assuming insurer that:
(1) is licensed to
				  write reinsurance by a reciprocal jurisdiction described by subsection (b) of
				  this section;
(2) has its principal
				  office or is domiciled in that reciprocal jurisdiction; and
(3) meets the other conditions of this
				  section.