Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013 Page: 8,375
8313-8478 p. ; 28 cm.View a full description of this periodical.
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sioner will deny the application. Following denial of the application,
the applicant may proceed under Insurance Code 964.059(c).
(f) If the applicant receives a certificate of general good, the
applicant must submit the following documentation to the department
to proceed with the licensing process:
(1) a certificate of filing from the Texas Secretary of State
indicating that the entity has been formed or redomesticated to Texas as
an entity under the Business Organizations Code, except a risk reten-
tion group or general partnership, for the purpose of providing captive
insurance;
(2) an affidavit satisfactory to the commissioner from the
incorporators, organizers, or officers of the captive insurance company
stating that:
(A) the capital and surplus are the bona fide property of
the company; and
(B) the certificate of filing is true and correct; and
(3) if necessary, an affidavit by the incorporators, organiz-
ers, or officers of the captive insurance company stating:
(A) the number of shares or other type of equity instru-
ment without par value that are subscribed; and
(B) the actual consideration received by the captive in-
surance company for those shares or other type of equity instrument.
(g) The applicant may submit a written request for the com-
missioner to waive any portion of the application or information re-
quired under this section. At the commissioner's sole discretion, the
commissioner may grant the waiver in writing, if the commissioner de-
termines the requirement or information is not applicable or provides
no additional value in reviewing the application.
6.203. Issuance of Captive Insurance Company Certificate of Au-
thoriy.
(a) Following submission of the information and documenta-
tion described under 6.202 of this title (relating to Captive Insurance
Company Certificate of Authority Application Contents and Process)
the commissioner will review the certificate of filing and the certifi-
cate general good for compliance with Insurance Code Chapter 964
and this chapter. If requested, the applicant must provide the commis-
sioner with updated information during this review.
(b) If the commissioner determines that the applicant meets the
requirements for issuance of a certificate of authority, the commissioner
will issue the certificate as described in Insurance Code 964.059(d).
(c) If the commissioner determines that the applicant has not
met the requirements for issuance of a certificate of authority under
Insurance Code 964.059 and this chapter, the commissioner will deny
the application. Following denial of the application, the applicant may
proceed under Insurance Code 964.059(c).
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-201305156Sara Waitt
General Counsel
Texas Department of Insurance
Earliest possible date of adoption: December 22, 2013
For further information, please call: (512) 463-6327
SUBCHAPTER D. MAINTENANCE OF
A CAPTIVE INSURANCE COMPANY'S
CERTIFICATE OF AUTHORITY
28 TAC 6.301 - 6.307
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 of
operations, of each insurer or health maintenance organization.
Section 401.006 provides for a procedure to obtain an exemp-
tion from the requirement to file an audited financial report if the
insurer has less than $1 million in direct premiums written in this
state during a calendar year. Section 401.051 establishes the
department's duty to examine insurers under Insurances Code
Chapter 401, Subchapter B.
Section 803.005 requires the books, records, accounts, or of-
fices of a domestic company to be under the company's direct
supervision, management, and control. Section 803.008 autho-
rizes the commissioner to adopt rules to authorize a domestic
company to maintain its books and records with a nonaffiliated
entity other than an agency.
Section 964.002 provides that a captive insurance company is
subject to Insurance Code Chapters 401 and 823. Further, the
section provides that Insurance Code Chapter 823 applies to a
captive insurance company only if the company is affiliated with
another insurer that is subject to Chapter 823.
Section 964.051 provides that a captive insurance company may
only insure the operational risks of the company's affiliates and
risks of a controlled, unaffiliated business. The section further
provides that a captive insurance company is authorized to issue
a contractual reimbursement policy to an affiliated certified self-
insurer authorized under Chapter 407, Labor Code, or an affiliate
that is insured by a workers' compensation insurance policy with
a negotiated deductible endorsement.
Insurance Code 964.052 provides the types of reinsurance that
the captive insurance company may write, including workers'
compensation insurance and employer liability policies issued
to affiliates, if the insurer that directly issues workers' compen-PROPOSED RULES November 22, 2013 38 TexReg 8375
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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/m1/63/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.