Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013 Page: 8,369
8313-8478 p. ; 28 cm.View a full description of this periodical.
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(A) the captive insurance company's financial state-
ments, including disclosures and supporting schedules;
(B) an actuarial opinion completed by a qualified actu-
ary that provides an opinion relating to policy reserves and other actu-
arial items for risks insured; and
(C) financial projections every third year, as required
under 6.406 of this title (relating to Financial Projections).
(3) Captive management company--A legal entity, not an
individual, that provides any administrative service to a captive insur-
ance company.
(4) Certificate offiling--Evidence of the acceptance and fil-
ing 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) General Partnership--The term includes a general part-
nership designated as a limited liability partnership. The term does
not include a limited partnership, including a limited partnership des-
ignated as a limited liability partnership.
(6) Generally accepted accounting principles--Current and
future generally accepted accounting principles issued by the Financial
Accounting Standards Board for use in the United States as provided
in 6.402 of this title (relating to Basis of Accounting).
(7) Governing body--The individuals designated by the
captive insurance company who comprise the ultimate decision-mak-
ing body of a captive insurance company, including a board of
directors or officers of the captive insurance company. This definition
applies to the use of the term in this chapter and the relationship of the
captive insurance company 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.
(8) Licensed attorney--A person licensed and eligible to
practice law.
(9) Qualified accountant--An independent certified public
accountant or accounting firm that meets the requirements of Insurance
Code 401.011.
(10) Qualified actuary--A person who meets the basic edu-
cation, experience, and continuing education requirements set forth in
the Qualification Standards for Actuaries Issuing Statements of Actu-
arial Opinion in the United States, promulgated by the American Acad-
emy 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.
(11) Qualified United States financial institution--An insti-
tution 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.
(12) Service providers--Captive management companies
that provide administrative services and individuals or entities provid-
ing legal, actuarial, or auditing services.(13) Texas Captive Annual Report--The forms, instruc-
tions, 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.
(14) Ultimate controlling person--Person or persons who
control a captive insurance company and who are not controlled by
another person.
6.2. Submissions and Notifications to the Commissioner and De-
partment.
Except as otherwise provided in this chapter or the Texas Captive An-
nual Report, all submissions to the commissioner or the department
referenced in this chapter must be sent:
(1) to the address and by the means specified in the appli-
cable department form; or
(2) if the address is not specified:
(A) electronically, to Captives@tdi.texas.gov;
(B) by hand delivery, to Captives, Texas Department of
Insurance, 333 Guadalupe, Mail Code 305-2C, Austin, Texas 78701;
or
(C) by mail, to Captives, Texas Department of Insur-
ance, P.O. Box 149104, Mail Code 305-2C, Austin, Texas 78714-9104.
The agency certifies that legal counsel has reviewed the pro-
posal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office of the Secretary of State on November 8,
2013.
TRD-201305154
Sara Waitt
General Counsel
Texas Department of Insurance
Earliest possible date of adoption: December 22, 2013
For further information, please call: (512) 463-6327
SUBCHAPTER B. CAPTIVE MANAGEMENT
COMPANIES
28 TAC 6.101 - 6.105
STATUTORY AUTHORITY. The department proposes the new
sections under the Government Code 411.083, 411.087, and
411.106, and Insurance Code 401.002, 401.006, 401.051,
803.005, 803.008, 964.002, 964.051 - 964.060, 964.062,
964.063, 964.065 - 964.067, 964.069, 964.071, and 36.001.
Government Code 411.106 authorizes the department to re-
ceive criminal history information from DPS regarding insurance
company principals and officers and applicants for any entity
holding or seeking a license, certificate, permit, registration, or
other authorization issued by the department to engage in a
regulated activity under the Insurance Code. Government Code
411.083 and 411.087 authorize the department to obtain,
through DPS, criminal history information from the FBI on those
individuals described in Government Code 411.106.
Section 401.002 provides that the purpose of Insurance Code
Chapter 401 Subchapter A is to require an annual audit by an
independent certified public accountant of the financial state-
ments, reporting on the financial condition and the results ofPROPOSED RULES November 22, 2013 38 TexReg 8369
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Texas. Secretary of State. Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013, periodical, November 22, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth379965/m1/57/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.