reglab/statecodes huggingface dataset:
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter D - MAINTENANCE OF A CAPTIVE INSURANCE COMPANY'S CERTIFICATE OF AUTHORITY › Section 6.303 - Captive Insurance Company Biographical Information

Current through Reg. 49, No. 28; July 12, 2024
(a) With the initial captive insurance
				  company application, and within 30 days of employment, contract, or other
				  association with the captive insurance company, or attorney in fact, the
				  following individuals must complete a biographical affidavit and submit it to
				  the department:
(1) with the exception of
				  functions provided by a captive management company, individuals, including
				  individual representatives of the attorney in fact, who oversee the management
				  of the captive insurance company, including the following functions, must
				  complete a biographical affidavit addressing:
(A) risk management;
(B) financial reporting;
(C) underwriting;
(D) claims; and
(E) investments;
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter D - MAINTENANCE OF A CAPTIVE INSURANCE COMPANY'S CERTIFICATE OF AUTHORITY › Section 6.304 - Material Change in the Plan of Operations

Current through Reg. 49, No. 28; July 12, 2024
(a) A
				  material change in the plan of operations involves a change in operations of
				  the captive insurance company that results in a significant modification in the
				  risk profile of the captive insurance company, including:
(1) adding one or more new lines of business
				  or perils;
(2) modifying policy
				  limit(s) or policy coverage(s);
(3)
				  changing captive management companies;
(4) entering into new reinsurance programs
				  including loss portfolio transfers;
(5) modifying reinsurance programs,
				  including:
(A) changing
				  counterparties;
(B) changing the
				  attachment point or amount of business ceded or assumed; and
(C) changing limits of coverage;
(6) changing the captive insurance
				  company's ultimate controlling person;
(7) any changes to the information associated
				  with controlled unaffiliated business submitted under §
											6.202(c)
				  of this title (relating to Captive Insurance Company Certificate of Authority
				  Application Contents and Process); and
(8) entering into a runoff mode or
				  eliminating one or more lines of business or perils, including winding up
				  operations.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter D - MAINTENANCE OF A CAPTIVE INSURANCE COMPANY'S CERTIFICATE OF AUTHORITY › Section 6.305 - Sale of a Covered Affiliate

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Except as provided in subsection (b) of this section, a captive insurance
				  company is prohibited from providing insurance coverage to a former affiliate
				  or reinsurance to an insurer covering the operational risks of the former
				  affiliate after the effective date on which the affiliation ceases, including
				  the effective date of the sale of the affiliate.
(b) The captive insurance company may provide
				  insurance coverage to the former affiliate if the captive insurance company
				  provides information acceptable to the commissioner that the coverage being
				  provided meets the requirements to be categorized as a controlled unaffiliated
				  business under §
										6.202(c)
				  of this title (relating to Captive Insurance Company Certificate of Authority
				  Application Contents and Process).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter D - MAINTENANCE OF A CAPTIVE INSURANCE COMPANY'S CERTIFICATE OF AUTHORITY › Section 6.306 - Books and Records

Current through Reg. 49, No. 28; July 12, 2024
(a) The books and
				  records of a captive insurance company must be located and maintained within
				  the United States and its territories at all times. The books and records of a
				  captive insurance company must be located and maintained within the State of
				  Texas, unless the commissioner authorizes in writing that the books and records
				  may be located or maintained outside the state. A captive insurance company may
				  not locate or maintain records outside of the state until after the captive
				  insurance company receives the commissioner's written authorization, and then
				  may only locate or maintain those records outside of the state in the manner
				  and to the extent that the commissioner has authorized.
(b) The captive insurance company must
				  provide the department with a complete list of all of the locations where its
				  records are located or maintained. Record location and maintenance locations
				  outside of the state must comply with the commissioner's authorization
				  described in subsection (a) of this section.
(c) A captive insurance company must make a
				  written request for authorization from the commissioner to locate or maintain
				  records outside of the state. The written request must:
(1) identify the specific physical address
				  outside the State of Texas where the captive insurance company's books and
				  records will be located or maintained;
(2) identify the types of books and records
				  that will be located or maintained outside the state, including books and
				  records in an electronic format;
(3) if applicable, identify the vendor of a
				  leased or purchased software or electronic platform that will provide services
				  to the captive insurance company related to the maintenance of the captive
				  insurance company's books and records; and
(4) if applicable, include the captive
				  insurance company's continuity plan in the event of cancellation or termination
				  of the arrangement with a vendor identified by the captive insurance company
				  under paragraph (3) of this subsection.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter D - MAINTENANCE OF A CAPTIVE INSURANCE COMPANY'S CERTIFICATE OF AUTHORITY › Section 6.307 - Changes to Formation Documents

Current through Reg. 49, No. 28; July 12, 2024
To comply with Insurance Code § 964.062, the captive
					 insurance company must submit any proposed change of information in its
					 formation documents to the department and request approval of the change in
					 advance. If the commissioner approves the change, the department will notify
					 the captive insurance company in writing. Submission to the department is not a
					 filing with the Texas Secretary of State, and the commissioner's approval does
					 not constitute acceptance or affect any review of the proposed amendment by the
					 Texas Secretary of State.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter E - FINANCIAL INFORMATION AND REPORTING › Section 6.401 - Annual Report

Current through Reg. 49, No. 28; July 12, 2024
(a) The department
				  adopts, by reference, the Texas Captive Annual Report, including all forms,
				  instructions, and requirements. The adopted forms and instructions will be
				  available on the department's website. The adopted forms, instructions, and
				  requirements are for use by all captive insurance companies that are subject to
				  the provisions of this chapter and Insurance Code Chapter 964. Bracketed
				  information in the forms, including the department 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.
(b) Except as provided in §
										6.404
				  of this title, on or before March 1 of each year, a captive insurance company
				  must electronically submit its annual report of the captive insurance company's
				  financial condition as of December 31 of the prior year using the adopted Texas
				  Captive Annual Report form and instructions.
(c) A request to waive the actuarial opinion
				  required to be filed with the annual report must be submitted to the department
				  no later than 30 days prior to the end of the fiscal year subject to the waiver
				  request. If approved, the approved actuarial opinion waiver must be submitted
				  with the Texas Captive Annual Report. The request must include:
(1) the name of the captive insurance
				  company;
(2) the name and contact
				  information of a representative of the captive insurance company with knowledge
				  of the information disclosed in the request;
(3) the time period that the captive
				  insurance company has been in operation;
(4) the amount of net written premium or
				  reinsurance assumed; and
(5) the
				  signature of an officer of the captive insurance company, or attorney in fact,
				  certifying the information contained in the request is true and correct to the
				  best of the signing individual's knowledge and belief.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter E - FINANCIAL INFORMATION AND REPORTING › Section 6.402 - Basis of Accounting

Current through Reg. 49, No. 28; July 12, 2024
Under Insurance Code §
										964.054(c),
					 the basis of accounting for captive insurance company financial statements is
					 current and future generally accepted accounting principles issued by the
					 Financial Accounting Standards Board for use in the United
					 States.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter E - FINANCIAL INFORMATION AND REPORTING › Section 6.403 - Audited Financial Statements

Current through Reg. 49, No. 28; July 12, 2024
(a) As
				  required in Insurance Code §
										964.060(b)(2)
				  and subject to the filing requirements of Insurance Code Chapter 401,
				  Subchapter A, the captive insurance company must file with the department by
				  June 1 of each year, a report of the captive insurance company's financial
				  condition at last year end. The report must include a qualified accountant's
				  opinion of the captive insurance company's financial condition.
(b) The opinion must meet the requirements of
				  Insurance Code Chapter 401, Subchapter A, and §
										7.85
				  and §
										7.88
				  of this title (relating to Audited Financial Reports and Independent Audits of
				  Insurer and HMO Financial Statements and Insurer and HMO Internal Control over
				  Financial Reporting).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter E - FINANCIAL INFORMATION AND REPORTING › Section 6.404 - Captive Insurance Companies Using Other Than Calendar Year Fiscal Years

Current through Reg. 49, No. 28; July 12, 2024
(a) A captive insurance company may submit a
				  written request to the commissioner for permission to use a fiscal year end
				  other than a calendar year end. The commissioner may grant the request in
				  writing at the commissioner's sole discretion. A captive insurance company may
				  not use a fiscal year other than a calendar year without the commissioner's
				  written authorization.
(b) As
				  required under Insurance Code §
										964.060(c)(3),
				  to support the premium tax return due March 1 of each year, a captive insurance
				  company that is granted a fiscal year end date other than December 31, must
				  submit the asset page and the liability, capital, and surplus page; income
				  statement; and statement of cash flow, as verified by two executive officers,
				  on or before March 1 of each year for the prior calendar year, and in the
				  annual report format established in the Texas Captive Annual Report adopted
				  under §
										6.401 of
				  this title (relating to Annual Report). The executive officers verifying the
				  report must have submitted biographical affidavits under §
										6.303
				  of this title (relating to Captive Insurance Company Biographical
				  Information).
(c) Under Insurance
				  Code §
										964.060(c),
				  a captive insurance company granted a fiscal year end date other than December
				  31 must:
(1) not later than the 60th day after
				  the captive insurance company's fiscal year end, submit to the department the
				  captive insurance company's annual report for the prior fiscal year using the
				  Texas Captive Annual Report form and instructions under §
											6.401 of
				  this title; and
(2) not later than
				  the 150th day after the date the annual report is due, submit to the department
				  the captive insurance company's audited financial statements as required under
				  §
											6.403
				  of this title (relating to Audited Financial Statements).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter E - FINANCIAL INFORMATION AND REPORTING › Section 6.405 - Capital and Surplus Requirements

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Capital and surplus requirements will be determined by the commissioner under
				  Insurance Code § 964.056. In addition to the factors listed in Insurance
				  Code § 964.056, the commissioner may consider any factor the commissioner
				  deems relevant in making this determination, including:
(1) net writings to policyholders' surplus
				  ratio;
(2) net reserves to
				  policyholders' surplus ratio; and
(3) net retention of an individual loss per
				  occurrence as a percentage of policyholders' surplus.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter E - FINANCIAL INFORMATION AND REPORTING › Section 6.406 - Financial Projections

Current through Reg. 49, No. 28; July 12, 2024
(a) A captive
				  insurance company must provide financial projections covering the next four
				  years of operations:
(1) with its application
				  under §
											6.202
				  of this title (relating to Captive Insurance Company Certificate of Authority
				  Application Contents and Process);
(2) as required under §
											6.304(c)
				  of this title (relating to Material Change in the Plan of
				  Operations);
(3) not later than 30
				  days after a request by the department; and
(4) with its annual report every third year,
				  except as provided in subsection (b) of this section.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter E - FINANCIAL INFORMATION AND REPORTING › Section 6.407 - Loans to Affiliates

Current through Reg. 49, No. 28; July 12, 2024
(a) Except as
				  provided in subsection (d) of this section, the captive insurance company must
				  submit a written request to the commissioner for prior approval of a loan
				  agreement with an affiliate.
(b)
				  Terms of the loan agreement under subsection (a) of this section must:
(1) be fair and equitable;
(2) prohibit advancement of funds by the
				  captive insurance company to the affiliate except as defined in the
				  agreement;
(3) include standards
				  for termination of the agreement with and without cause; and
(4) specify that, if the captive insurance
				  company is placed in receivership or seized by the commissioner under Insurance
				  Code Chapter 443:
(A) all of the rights of
				  the captive insurance company under the agreement extend to the receiver or
				  commissioner; and
(B) all books and
				  records will immediately be made available to the receiver or the commissioner
				  and must be turned over to the receiver or commissioner immediately on the
				  receiver's or the commissioner's request.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter E - FINANCIAL INFORMATION AND REPORTING › Section 6.409 - Dividends and Distributions

Current through Reg. 49, No. 28; July 12, 2024
(a) A
				  captive insurance company must notify the Commissioner of a policyholder
				  dividend or distribution within 30 days of issuing the dividend.
(b) Dividends and distributions to holders of
				  equity interests that are not policyholder dividends or distributions under
				  subsection (a) of this section must be approved by the Commissioner before
				  payment. The captive insurance company must notify the Commissioner of its
				  intent to make such a payment at least 30 days prior to the payment date. The
				  notice must include:
(1) The amount of the
				  declared dividend or distribution;
(2) The declaration date;
(3) The proposed payment date;
(4) The net writings to policyholders'
				  surplus ratio before and after the payment is made; and
(5) The net reserves to policyholders'
				  surplus ratio before and after the payment is made.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter E - FINANCIAL INFORMATION AND REPORTING › Section 6.410 - Application of Holding Company Requirements

Current through Reg. 49, No. 28; July 12, 2024
A captive insurance company must comply with Insurance Code
					 Chapter 823 and regulations implementing that chapter if the captive insurance
					 company is affiliated with another insurance company that is part of a holding
					 company and subject to Insurance Code Chapter 823. The regulations include
					 §§7.201 - 7.205 and §§
										7.209- 7.214 of
					 this title (relating to Forms Filings, Definitions, Registration of Insurers;
					 Transactions Subject to Prior Notice; Acquisition or Divestiture
					 Statements--Filing Requirements, Form A, Form B, Form C, Form D, Form E, and
					 Form F).
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter E - FINANCIAL INFORMATION AND REPORTING › Section 6.411 - Reinsurance under Insurance Code Section 964.052(f)

Current through Reg. 49, No. 28; July 12, 2024
(a) A qualified jurisdiction under Insurance
				  Code §
										964.052(f)(1)
				  is determined to be acceptable under § 7.624 of this title.
(b) A nationally recognized statistical
				  rating organization under Insurance Code §
										964.052(f)(3)
				  is determined to be acceptable under § 7.622(a)(4)(C) or § 7.627 of
				  this title.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter F - WORKERS' COMPENSATION › Section 6.501 - Workers' Compensation

Current through Reg. 49, No. 28; July 12, 2024
(a) A captive
				  insurance company may not write, issue, or provide any form of workers'
				  compensation insurance coverage to policyholders.
(b) A captive insurance company that issues a
				  reimbursement policy for claims paid under a workers' compensation insurance
				  policy written and issued by an authorized insurance company, may not
				  participate in the adjudication, settlement, or payment of any claims made
				  under that workers' compensation insurance policy.
(c) Claims incurred by a certified
				  self-insured employer may not be paid directly by a captive insurance company,
				  but must continue to be paid by a qualified claims servicing contractor as
				  required in Labor Code §
										407.061.
(d) The existence of a contractual
				  reimbursement policy issued by a captive insurance company to an affiliate does
				  not alter any statutory requirements related to workers' compensation
				  insurance, including the statutory requirement under Insurance Code §
										2053.203
				  that:
(1) the insurance company writing a
				  workers' compensation policy with a negotiated deductible is required to pay
				  all benefits, including those benefits payable, wholly or partly, from the
				  deductible amount; and
(2) the
				  policyholder must make reimbursements to the insurance company writing the
				  workers' compensation policy with a negotiated deductible periodically, rather
				  than at the time claim costs are incurred.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter G - TAXES › Section 6.601 - Waiver of Taxes

Current through Reg. 49, No. 28; July 12, 2024
(a) A foreign or
				  alien captive insurance company redomesticating from another jurisdiction may
				  request that the commissioner postpone or waive the imposition of any tax or
				  fee under the Insurance Code for a period not to exceed two tax reporting years
				  from the date of redomestication.
(b) The request must be in writing and
				  submitted to the department with the application.
(c) The request must state and provide
				  support of the benefit that licensing the captive insurance company will have
				  for Texas, including, as applicable, employment of Texas residents, the
				  development of real estate in Texas, economic activity in Texas, and additional
				  taxes that will be paid in Texas.
(d) The commissioner may in writing grant or
				  deny the waiver request in whole or in part at the commissioner's sole
				  discretion, including granting a waiver for all or part of the two-year period
				  and all or part of one or more of the following taxes or fees:
(1) the maintenance tax;
(2) the premium tax; or
(3) licensing fees.
Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 6 - CAPTIVE INSURANCE › Subchapter H - DISCIPLINARY ACTION › Section 6.701 - Disciplinary Action

Current through Reg. 49, No. 28; July 12, 2024
Disciplinary action may be taken against a captive
					 insurance company, captive insurance manager, or other person if, after notice
					 and opportunity for hearing, it is determined that the captive insurance
					 company, captive insurance manager, or other person has violated the Insurance
					 Code, or other law subject to department enforcement, or regulation by the
					 department, including:
(1) a captive
				  insurance company that violates §
										6.501 of
				  this title (relating to Workers' Compensation); and
(2) an insurance carrier, as defined by Labor
				  Code §
										401.011, if
				  it allows an employer, other than a certified self-insured employer, to dictate
				  the methods by which and the terms on which a claim is handled and settled in
				  violation of statute.
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 7.1 - Scope

Current through Reg. 49, No. 28; July 12, 2024
These sections are supplementary to and cumulative of
					 existing statutes and sections of the State Board of Insurance. In the case of
					 an ambiguity or contradiction between these sections and any statute, the
					 provisions of the statute control.
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 7.2 - Savings Clause

Current through Reg. 49, No. 28; July 12, 2024
Each cause of action, pending litigation, matter in process
					 before the State Board of Insurance or commissioner of insurance, or matter
					 hereafter arising from an event occurring prior to the time these sections
					 become effective shall be determined in accordance with and governed by the
					 provisions of statutes, sections, orders, or interpretations of the State Board
					 of Insurance in effect at the time of the occurrence of the subject event; and
					 this section operates to save the application of such past procedure and law to
					 any such event from amendment, change, or repeal notwithstanding any provision
					 of these sections or any conflict or ambiguity therein.
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 7.4 - Admissible Assets

Current through Reg. 49, No. 28; July 12, 2024
The portion of any asset not qualifying as a legal
					 investment shall not be admitted. The companies shall dispose of such
					 inadmissible assets or take such action as is necessary to bring the investment
					 into legal compliance. Companies will not be required to dispose of
					 inadmissible contributed assets. After notice and hearing, the commissioner of
					 insurance may order a company to dispose of assets (other than contributed
					 assets) not qualifying as a legal investment. Any commissioner's order
					 requiring disposition of assets shall, however, provide in such order for the
					 company to have a reasonable period of time (taking into account the nature,
					 complexity and size of the inadmissible assets, the then prevailing economic
					 conditions, and the effect of the disposal of such assets relative to the going
					 concern solvency of the company) to dispose of the inadmissible
					 assets.
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 7.5 - Discrimination as to Premium Notices to Accident or Health Insurance Policyholders

Current through Reg. 49, No. 28; July 12, 2024
There shall be no discrimination between individuals of the
					 same class and of essentially the same hazard holding policies or contracts of
					 accident or health insurance respecting notification to individuals of premiums
					 due or about to become due. The discrimination as between policyholders in the
					 expenditure of company funds for such items as postage, office supplies,
					 clerical salaries, machine and equipment time, etc., or in any other manner
					 concerning the notification of such policyholders of premiums due or about to
					 become due constitutes a violation of the Insurance Code, Article 21.21.
					 Therefore, if any company elects to follow the practice of furnishing premium
					 notices to any policyholder, it is incumbent upon such company to follow a
					 uniform practice of sending such premium notices to all policyholders. Wherever
					 in the course of an examination the State Board of Insurance finds that an
					 insurer follows the practice of not sending notices to certain individuals with
					 the apparent intention of bringing about a lapse of the policy by reason of
					 failure of the policyholder to pay his premium within the period required by
					 the contract, it shall accumulate such facts as necessary to show a violation,
					 if any, of the Insurance Code, Article 21.21. In this connection, reference is
					 made to the Insurance Code, Article 1.10, §7, which provides the State
					 Board of Insurance with authority to take disciplinary action against any
					 company for failure to comply with applicable law.
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 7.6 - Unearned Premium Reserve for Inland Marine Insurance

Current through Reg. 49, No. 28; July 12, 2024
In accordance with the Insurance Code, Articles 6.02 and
					 6.12, inland marine and inland marine connected transportation coverages of
					 transit or cargo risks will be reserved at 100% of the premium charged on
					 unexpired risks. The coverages subject to the 100% reserve will ordinarily be
					 identified as coverages written on flat rate bases and without stipulated terms
					 other than expiration limits. All other inland marine coverages will be
					 reserved in accordance with the Insurance Code, Article 6.01.
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 7.7 - Subordinated Indebtedness, Surplus Debentures, Surplus Notes, Premium Income Notes, Bonds, or Debentures, and Other Contingent Evidences of Indebtedness

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions. The following words and
				  terms, when used in this section, shall have the following meanings, unless the
				  context clearly indicates otherwise.
(1)
				  Affiliate or affiliated--Has the same meaning as the term affiliate is used,
				  defined, or applied in the Insurance Code §
											823.003.
(2) Minimum surplus or floor--The amount of
				  surplus specified in the written agreement evidencing the subordinated
				  indebtedness which may not be used for payments or repayments of subordinated
				  indebtedness and which amount must exceed the greater of the following:
(A) a minimum surplus stated and fixed in the
				  agreement; or
(B) a minimum surplus
				  of $500,000 for that insurer.
(3) Subordinated indebtedness, surplus notes,
				  surplus debenture, contribution certificates, surplus capital notes, and
				  premium income notes, bonds, or debentures--Any contingent indebtedness issued
				  by an insurer for which such insurer assumes a subordinated liability for
				  repayment of principal and payment of interest pursuant to a written agreement
				  providing for payment only out of that portion of an insurer's surplus that
				  exceeds a minimum surplus stated in such agreement. Subordinated indebtedness
				  includes advances or loans made in accordance with the Insurance Code
				  §§
											882.253,
				  883.162,
				  912.309,
				  942.158,
				  and
				  961.206.
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 7.9 - Examination of Actuarial Opinion for Property and Casualty Insurers

Current through Reg. 49, No. 28; July 12, 2024
(a) Scope. This section applies to all
				  insurers that are required to file an actuarial opinion with the property and
				  casualty annual statement adopted by the commissioner under Insurance Code
				  §
										802.001,
				  including fire, fire and marine, general casualty, fire and casualty, or U.S.
				  branch of an alien insurer, county mutual insurance company, mutual insurance
				  company other than a life insurance company, Lloyd's plan, reciprocal or
				  inter-insurance exchange, domestic risk retention group, life insurance company
				  that is licensed to write workers' compensation, any farm mutual insurance
				  company that filed a property and casualty annual statement that had gross
				  written premiums in excess of $5,000,000, any Mexican non-life insurer licensed
				  under any provision of the Insurance Code other than, or in addition to,
				  Insurance Code Chapter 984, domestic joint underwriting association, the Texas
				  Mutual Insurance Company, and the Texas FAIR Plan Association.
(b) Purpose. The section will facilitate the
				  examination of the statement of actuarial opinion required to be attached to an
				  insurer's annual statement under Insurance Code §
										802.002.
				  The Actuarial Opinion Summary will provide information which will assist the
				  department in identifying those insurers which require additional analysis to
				  determine their financial condition.
(c) Actuarial Opinion Summary. By March 15th
				  of each year a domestic insurer subject to this section shall submit to the
				  department an Actuarial Opinion Summary completed in accordance with applicable
				  National Association of Insurance Commissioners Annual Statement Instructions,
				  Property and Casualty.
(d)
				  Additional Documents. Upon request of the commissioner:
(1) a domestic insurer shall submit the
				  Actuarial Report and Workpapers that support its actuarial opinion,
				  and
(2) a foreign insurer shall
				  submit its Actuarial Opinion Summary and/or Actuarial Report and Workpapers
				  that support its actuarial opinion.
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 7.18 - National Association of Insurance Commissioners Accounting Practices and Procedures Manual

Current through Reg. 49, No. 28; July 12, 2024
(a) The
				  commissioner reserves all authority and discretion to resolve any issues in
				  Texas concerning the proper accounting treatment for an insurance or health
				  plan transaction. When determining the proper accounting treatment for an
				  insurance or health plan transaction, the commissioner, insurers, and health
				  maintenance organizations will refer to the sources in paragraphs (1) - (6) of
				  this subsection in the respective order of priority listed for guidance on how
				  to properly record business transactions for the purpose of accurate statutory
				  reporting and for preparing all financial statements filed with TDI. The
				  sources in paragraphs (1) - (3) of this subsection preempt any contrary
				  provisions in the National Association of Insurance Commissioners' (NAIC)
Accounting Practices and Procedures Manual
(manual).
(1) Texas statutes;
(2) TDI rules;
(3) directives, instructions, and orders of
				  the commissioner;
(4) except as
				  provided in the exceptions, modifications, and exemptions set forth in
				  subsections (c) and (d) of this section, the manual;
(5) other NAIC handbooks, manuals, and
				  instructions adopted by TDI; and
(6) Generally Accepted Accounting
				  Principles.
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 7.20 - Premium Notes and Premium Income, Chapter 17 Companies

Current through Reg. 49, No. 28; July 12, 2024
Any and all charges, by whatever name called, made,
					 imposed, and/or collected from an insured and/or premium payor by a county
					 mutual insurance company, shall constitute taxable premiums to the county
					 mutual; except any interest or finance charge clearly identified in a premium
					 note or other evidence of premium payable shall not be included as taxable
					 premiums. The provisions of this section shall not apply to any county mutual
					 insurance company whose business is devoted exclusively to the writing of
					 industrial fire insurance policies covering dwellings, household goods, and
					 wearing apparel on a weekly, monthly, or quarterly basis on a continuous
					 premium payment plan.
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 7.22 - Certification of Assessments/Claims Paid, and Credit against Premium Taxes for Members of the Texas Catastrophe Property Insurance Association under the Insurance Code, Article 21.49

Current through Reg. 49, No. 28; July 12, 2024
(a) On or
				  before the 15th day of February of each year, the Texas Catastrophe Property
				  Insurance Association shall certify to the State Board of Insurance the total
				  amount of assessments paid by members and the total amount of claims paid by
				  the association during the preceding calendar year, which certification shall
				  include a summary of the total amount of claims paid during the preceding
				  calendar year showing the year or years in which the losses were incurred. In
				  the event the aggregate amount of either assessments paid or claims paid on
				  losses that were incurred in a single calendar year exceeds $100 million, the
				  association shall list the dollar amount of such excess of $100 million that is
				  attributable to each individual insurer. For the purpose of determining the
				  amount attributable to each individual member insurer of a member group
				  composed of two or more individual member insurers, the association shall
				  obtain from each member group a certification of the following: the percentage
				  participation of each individual member insurer in the member group's
				  assessment or assessments during the previous calendar year; and the total
				  amount of money paid by each individual insurer of the member group for each
				  assessment during the previous calendar year. On or before the first day of
				  February of each year, each individual insurer of a member group shall cause
				  the foregoing information to be certified to the association. The books and
				  records of each individual insurer must reflect the amounts as certified to the
				  association.
(b) An insurer is
				  eligible for a tax credit under the Insurance Code, Article 21.49, §19,
				  only to the extent its share or a portion of its share of the assessment (as
				  determined by the association) of total insured losses exceeding $100 million
				  in the year for which the tax credit is claimed has been paid. No insurer is
				  entitled to a greater amount of aggregate tax credit than its share of total
				  insured losses exceeding $100 million which have been paid.
(c) Any dispute between an insurer and the
				  association as to the amount allowable as an admitted asset or for credit
				  against premium taxes, is subject to the appeal provisions of the Insurance
				  Code, Article 21.49, §9.
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 7.24 - Valuation Date for Investments under the Insurance Code, Article 4.11

Current through Reg. 49, No. 28; July 12, 2024
The value to be reported for each investment under the
					 Insurance Code, Article 4.11, shall be admitted value reflected in the
					 insurer's annual statement as of December 31 of the tax year, except demand
					 deposits of banks, savings and loans, or other financial institutions. Such
					 demand deposits shall be reported at the average of the month-end balance for
					 each of the 12 months of the tax year. The month-end balances of demand
					 deposits shall be determined from the insurer's ledger accounts. This section
					 applies to taxes on premiums collected on and after January 1,
					 1985.
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 7.25 - Out of State Books and Records

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Purpose and Scope. The purpose of this section is to describe the procedure an
				  eligible insurer must follow when it desires to relocate and maintain all or
				  any portion of its books, records, and accounts and its principal offices
				  outside this state at a location within the United States. To facilitate
				  brevity, "all or any portion of its books, records, and accounts and its
				  principal offices" will be referred to as "records" in this section. Insurance
				  Code Article 1.28 and this section describe the standards that an insurer must
				  meet to be eligible to relocate its records outside this state and sets forth
				  the information an eligible insurer must provide to the department in its
				  notice of intent to relocate records so that the Commissioner of Insurance
				  (Commissioner) can make an informed decision to approve or disapprove the
				  proposed relocation. The normal records relating to the business produced by an
				  agency of an eligible insurer are not subject to Insurance Code Article 1.28.
				  The department interprets the term "agency" in Insurance Code Article 1.28 to
				  mean a person described in Insurance Code Article 21.02. An eligible insurer
				  that desires to relocate its records to an out of state location must provide
				  the information required by subsection (d) of this section. An eligible
				  insurance company that desires to deliver possession of its records to another
				  person located out of state who is an affiliate of the eligible insurer must
				  also provide the information required by subsections (e) and (f) of this
				  section. When that person is not affiliated with the eligible insurer, the
				  person must comply with the provisions of subsections (e) - (g) of this
				  section. Records of a health maintenance organization relating to its quality
				  assurance program are not subject to this section.
(b) Definitions. The following words and
				  terms, when used in this section, have the following meanings, unless the
				  context clearly indicates otherwise.
(1)
				  Affiliate - As defined in Insurance Code §
											823.003.
(2) Domestic insurance company - As defined
				  in Insurance Code §
											803.001.
(3) Eligible insurer - A domestic insurance
				  company that is:
(A) an affiliate of an
				  insurance holding company system; or
(B) a health maintenance organization that is
				  an affiliate of another health maintenance organization or health care
				  provider.
(4) Health care
				  provider - Is the same as the term "provider" in Insurance Code §
											843.002.
(5) Insurance holding company system - As
				  defined in Insurance Code §
											823.006.
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 7.31 - Annual Statement Instructions for Farm Mutual Insurance Companies

Current through Reg. 49, No. 28; July 12, 2024
Companies operating under the Insurance Code, Chapter 16,
					 which file the annual statement form adopted by the board for farm mutual
					 insurance companies and that have less than $750,000 total direct plus assumed
					 written premiums during a calendar year, are not required to comply with the
					 Insurance Code, Article 1.11(c), by filing an actuarial opinion with the annual
					 statement. Farm mutual insurance companies writing less than $750,000 direct
					 plus assumed written premium may be required to file an actuarial opinion if
					 requested by the commissioner.
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 7.83 - Appeal of Examination Reports

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Purpose and scope. This section implements Insurance Code Chapter 401 which
				  directs the Commissioner to adopt procedures for filing and adoption of
				  examination reports and for hearings to be held under Insurance Code Chapter
				  401 and guidelines governing orders issued under Insurance Code Chapter 401.
				  The section provides an appeals process to preserve both the right of a company
				  to a fair and impartial examination and promote respect for the independence
				  and the importance of the on-site examiner who actually observes the conditions
				  being reported. The purpose of an appeal process is not to replace the
				  examination in the field, nor is it to substitute the judgment of the
				  supervisory or management personnel for that of the examiner. It is to properly
				  weigh the examination report, and to determine whether there is any error or
				  bias which should be corrected. This section applies to all examinations
				  conducted of any entity examined under Insurance Code Chapter 401, except for
				  entities that are subject to another examination appeals process under the
				  Insurance Code.
(b) Definitions.
				  The following words and terms, when used in this section, have the following
				  meanings, unless the context clearly indicates otherwise.
(1) Adopted examination report--An
				  examination report that has been adopted by the department under this
				  section.
(2) Appeal--The process by
				  which a company requests that the department review a final examination report
				  for error or bias before adoption of the final examination report.
(3) Company--Any entity examined by the
				  department under Insurance Code Chapter 401.
(4) Examination report--A report prepared by
				  or on behalf of the department as a result of an examination under Insurance
				  Code Chapter 401. An examination report does not include work papers related to
				  the examination.
(5) Final
				  examination report--An examination report that has been reviewed by the chief
				  examiner or designee, and transmitted to the examined company.
(6) Department--Texas Department of
				  Insurance.
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 7.84 - Examination Frequency

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. This
				  section governs the frequency of examinations conducted under Insurance Code
				  §
										401.052.
				  The section implements Insurance Code §
										401.052(b),
				  which directs the Commissioner to adopt rules governing the frequency of
				  examinations of carriers that have been organized or incorporated for less than
				  five years.
(b) Applicability. This
				  section applies only to examinations commenced after the effective date of this
				  section.
(c) Definitions. The
				  following words and terms, when used in this section, have the following
				  meanings, unless the context clearly indicates otherwise.
(1) Carrier--For the purposes of this
				  section, carrier includes any entity subject to examination under Insurance
				  Code §
											401.051.
				  The term does not include a workers' compensation self-insurance group as that
				  term is defined by Labor Code Chapter 407A.
(2) Commissioner--The Commissioner of
				  Insurance.
(3) Department--The
				  Texas Department of Insurance.
(4)
				  Insurance holding company system --As described in Insurance Code §
											823.006.
(5) Redomesticated carrier --A carrier that
				  redomesticates to this state from another state under Insurance Code §
											983.051.
(6) Self-insurance group --An unincorporated
				  association or business trust composed of five or more private employers
				  holding a certificate of approval to act as a workers' compensation
				  self-insurance group issued by the department under the Labor Code Chapter
				  407A.