Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013 Page: 8,371
8313-8478 p. ; 28 cm.View a full description of this periodical.
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Section 964.069 authorizes the commissioner to adopt reason-
able rules as necessary to implement the purposes and provi-
sions of this chapter.
Section 964.071(a) provides that an authorized foreign or alien
captive insurance company licensed under laws of any jurisdic-
tion may become a domestic captive insurance company in this
state on a determination by the commissioner that the captive in-
surance company has complied with the requirements of Insur-
ance Code Chapter 964. Section 964.071(c) provides that the
commissioner may postpone or waive the imposition of any fees
or taxes under this code for a period not to exceed two years for
any foreign or alien captive insurance company redomesticating
to this state.
Section 36.001 provides that the commissioner of insurance may
adopt any rules necessary and appropriate to implement the
powers and duties of the Texas Department of Insurance under
the Insurance Code and other laws of the state.
CROSS REFERENCE TO STATUTE. The proposal affects
the following statutes: Insurance Code 401.002, 401.006,
401.051, 803.005, 803.008, 964.002, 964.051, 964.052,
964.053, 964.054, 964.055, 964.056, 964.057, 964.057,
964.058, 964.059, 964.060, 964.062, 964.063, 964.065,
964.066, 964.067, 964.069, 964.071, 36.001 and Government
Code 411.083, 411.087, and 411.106.
6.101. Registration of Captive Management Companies.
(a) A captive management company may not provide admin-
istrative services to a captive insurance company prior to obtaining the
commissioner's written approval of its registration as a captive man-
agement company.
(b) Unless the individual is an employee of the captive insur-
ance company, an individual may not provide administrative services
or be registered to provide such services.
(c) To register as a captive management company, the entity
must submit the following information to the department in manner
that is acceptable to the department:
(1) the name of the entity;
(2) the entity's federal employer identification number;
(3) information regarding the location and means of con-
tacting the entity; and
(4) the name and biographical information, including fin-
gerprints, of a designated responsible party, who qualifies under 6.103
of this title (relating to Designated Responsible Party), and who will be
the contact for the department.
(d) The department may provide a form the registrant can use
to comply with this section.
6.102. Maintenance and Duration of the Registration.
(a) The captive management company must notify the depart-
ment of changes to the information required for registration not later
than 30 days after the change.
(b) A captive management company may not operate without
a designated responsible party except as provided in this subsection. If
a designated responsible party leaves a captive management company,
the captive management company must notify the department of a re-
placement designated party and provide all information required under
6.103 of this title (relating to Designated Responsible Party) within
the 30 day period specified in subsection (a) of this section.(c) The captive management company's registration will ex-
pire if the captive management company does not provide administra-
tive services to at least one Texas domestic captive insurance company
for a period of more than 90 days.
(d) If a captive management company's registration expires,
the captive management company must submit a new registration to the
department, which must be approved in writing by the commissioner
before the entity can act as a captive management company. The cap-
tive management company may submit a written request for the com-
missioner to waive any portion of the registration requirement under
this section. At the commissioner's sole discretion, the commissioner
may grant the waiver in writing if the commissioner determines that the
requirement or information is not applicable or provides no additional
value in reviewing the registration submission.
6.103. Designated Responsible Party.
A designated responsible party must:
(1) be an individual;
(2) provide the designated responsible party's current name
and any names the individual may have used in the past, social security
number, date of birth, and current mailing addresses, phone numbers,
and email addresses;
(3) provide professional background information and crim-
inal history information;
(4) a complete set of fingerprints using the procedures
set forth in 1.509 of this title (relating to Fingerprint Format and
Complete Application), unless the individual meets the exemption in
1.504(b)(1) of this title (relating to Fingerprint Requirement); and
(5) be eligible for licensure based on the guidelines estab-
lished in 1.502 of this title (relating to Licensing Persons with Crimi-
nal Backgrounds).
,6.104. Administrative Services Contracts.
(a) A captive insurance company through its governing body
may retain one or more captive management companies registered un-
der this chapter to provide administrative services and implement the
governing body's policies.
(b) With the written consent of the captive insurance company,
a captive management company may contract with another captive
management company to provide administrative services.
(c) The captive insurance company retains ultimate account-
ability and responsibility for compliance with all statutory and regula-
tory requirements. The captive insurance company may not enter into
an agreement with a captive management company or other person that
in any way limits, or may be construed to limit, the captive insurance
company's ultimate accountability and responsibility for compliance
with all statutory and regulatory requirements.
(d) Subsection (c) of this section does not limit the captive
management company's obligations under any contract or the captive
management company's duty to comply with all statutory and regula-
tory requirements.
(e) If an administrative service requires a license or certificate
of authority under the Insurance Code or other law, a captive manage-
ment company must have the required license or certificate of authority
to provide the service.
6.105. Agreements to Provide Administrative Services.
(a) An agreement with a captive management company de-
scribed in 6.104 of this title (relating to Administrative Services Con-
tracts) must be in writing and include the following:PROPOSED RULES November 22, 2013 38 TexReg 8371
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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/m1/59/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.