Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013 Page: 8,377
8313-8478 p. ; 28 cm.View a full description of this periodical.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
(1) providing biographical information as required under
6.303 of this title (relating to Captive Insurance Company Biograph-
ical Information);
(2) writing an annual premium amount of at least $100,000;
(3) having an affiliate or ultimate controlling person with
the financial wherewithal to continue placing the risk in the captive
insurance company;
(4) complying with 6.306 and 7.1403 of this title (relat-
ing to Books and Records and Service on Domestic Insurance Compa-
nies Licensed by the State Board of Insurance and on Related Entities
Authorized To Conduct Business in Texas);
(5) submitting annual reports and audited financial state-
ments as described in 6.401, 6.403, and 6.404 of this title (relating
to Annual Report, Audited Financial Statements, and Captive Insur-
ance Companies Using Other Than Calendar Year Fiscal Years);
(6) notifying the department of any material change in the
captive insurance company's plan of operation, as described in 6.304
of this title (relating to Material Change in the Plan of Operations);
(7) maintaining minimum capital and surplus as estab-
lished by the department;
(8) except as provided in paragraph (6) of this section, no-
tifying the department of any change to the information provided in the
application within 30 days following the change; and
(9) timely payment of all required fees and registrations,
including payments required by the Texas Secretary of State to main-
tain the captive insurance company in good standing.
6.302. Governing Body.
(a) The captive insurance company must designate individuals
to form a governing body. Collectively, the members of the governing
body must have the ability and experience necessary to oversee the
captive insurance company's operations. The ability and experience
needed will vary with the size and complexity of the captive insurance
company's operations.
(b) The governing body is responsible for the following:
(1) establishing and documenting the internal control pro-
cedures used by the captive insurance company; if a captive insurance
company uses an affiliate's procedures, the governing body must re-
view the procedures for appropriateness and modify where needed;
(2) documenting a conflict-of-interest policy and proce-
dure, and monitoring it to verify compliance;
(3) overseeing all entities providing captive management
services to the captive insurance company;
(4) monitoring counterparty risk, which could include
banking institutions and reinsurers;
(5) setting the captive insurance company investment pol-icy; and
(6) managerial control, insurance information, and compli-
ance with the Insurance Code and department rules.
6.303. Captive Insurance Company Biographical Information.
(a) With the initial captive insurance company application, and
within 30 days of employment, contract, or other association with the
captive insurance company, 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 who oversee the management ofthe 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;
(2) members of the governing body; and
(3) corporate officers.
(b) Biographical affidavits required of individuals under sub-
section (a) of this section must include the following information and
disclosures:
(1) the affiant'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, email addresses;
(2) the name and address of the captive insurance com-
pany;
(3) the affiant's position or title at the captive insurance
company;
(4) information regarding the affiant's education, member-
ships in professional organizations, and any professional, occupational,
or vocational licenses held;
(5) the previous 10 years of the affiant's employment his-
tory and
(6) the affiant's fidelity bond coverage history, criminal his-
tory, and ownership or control of entities involved in the business of
insurance.
,6.304. Material Change in the Plan of Operations.
(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 busi-
ness 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 con-
trolled unaffiliated business submitted under 6.202(c) of this title (re-
lating to Captive Insurance Company Certificate of Authority Applica-
tion Contents and Process); and
(8) entering into a runoff mode or eliminating one or more
lines of business or perils, including winding up operations.PROPOSED RULES November 22, 2013 38 TexReg 8377
X - ~ ~ -- /- . . .. - . . . . . . . . . l -- .r.. . - -
Upcoming Pages
Here’s what’s next.
Search Inside
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Periodical.
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/m1/65/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.