Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter A - GENERAL MATTERS › Section 6.1 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
(a) The definitions in Insurance Code §
										964.001 apply to this
				  chapter.
(b) The following words
				  and terms when used in this chapter have the following meanings unless the
				  context clearly indicates otherwise:
(1)
				  Administrative services--Insurance-related services necessary for the operation
				  of a captive insurance company, including: claims adjustment; underwriting;
				  accounting; investment advice; risk management; regulatory compliance;
				  compiling statistics and preparing premium, loss, and tax reports; maintaining
				  books and records; handling reinsurance matters; and processing
				  premiums.
(2) Annual report--The
				  annual report includes the following information, as required in the Texas
				  Captive Annual Report form and instructions adopted under §
											6.401 of
				  this title:
(A) the captive insurance
				  company's financial statements, including disclosures and supporting
				  schedules;
(B) an actuarial opinion
				  completed by a qualified actuary that provides an opinion relating to policy
				  reserves and other actuarial items for risks insured; and
(C) financial projections every third year,
				  as required under §
												6.406 of
				  this title.
(3) Captive
				  management company--A legal entity, not an individual, that has oversight
				  responsibility for providing any administrative service to a captive insurance
				  company.
(4) Certificate of
				  filing--Evidence of the acceptance and filing of an instrument authorized to be
				  filed with the Texas Secretary of State under the Business Organizations Code,
				  Insurance Code Chapter 964, and this chapter.
(5) Commissioner--The Texas Commissioner of
				  Insurance.
(6) Department--The
				  Texas Department of Insurance.
(7)
				  General partnership--The term includes a general partnership designated as a
				  limited liability partnership. The term does not include a limited partnership,
				  including a limited partnership designated as a limited liability
				  partnership.
(8) Governing
				  body--The individuals designated by the captive insurance company, or attorney
				  in fact, who comprise the ultimate decision-making body of a captive insurance
				  company, or attorney in fact, including a board of directors or officers of the
				  captive insurance company, or attorney in fact. This definition applies to the
				  use of the term in this chapter and the relationship of the captive insurance
				  company, or attorney in fact, to the department. To the extent that the term
				  has a different meaning under the Business Organizations Code related to the
				  formation of entities and filings with the Texas Secretary of State, this
				  definition does not apply.
(9)
				  Licensed attorney--A person licensed and eligible to practice law.
(10) Qualified accountant--An independent
				  certified public accountant or accounting firm that meets the requirements of
				  Insurance Code §
											401.011.
(11) Qualified actuary--A person who meets
				  the basic education, experience, and continuing education requirements set
				  forth in the Qualification Standards for Actuaries Issuing Statements of
				  Actuarial Opinion in the United States, promulgated by the American Academy of
				  Actuaries, and is either:
(A) a member of the
				  American Academy of Actuaries who has demonstrated actuarial competence to the
				  satisfaction of the Commissioner; or
(B) a member of the Casualty Actuarial
				  Society.
(12) Qualified
				  United States financial institution--An institution that:
(A) is organized under the laws of the United
				  States or any state of the United States;
(B) is regulated, supervised, and examined by
				  a federal or state authority that has regulatory authority over banks and trust
				  companies; and
(C) is approved by
				  the Commissioner.
(13)
				  Service providers--Captive management companies that provide administrative
				  services and individuals or entities providing legal, actuarial, or auditing
				  services.
(14) Texas Captive Annual
				  Report--The forms, instructions, and requirements adopted by reference in
				  §
											6.401 of
				  this title that are necessary for completing the annual report and other
				  submissions under this chapter.
(15) Ultimate controlling person--Person or
				  persons who control a captive insurance company and who are not controlled by
				  another person.