Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013 Page: 8,385
8313-8478 p. ; 28 cm.View a full description of this periodical.
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Section 964.059 requires the commissioner to determine if the
certificate of authority will be issued. The commissioner may
consider the factors listed in the section and any other factors
the commissioner considers relevant to determine whether the
applicant will be able to meet its policy obligations. The section
establishes an appeal process if the application is denied.
Section 964.060 requires a captive insurance company to file
with the commissioner on or before March 1 of each year, a state-
ment of the company's financial condition, verified by two of its
executive officers and filed in a format prescribed by the com-
missioner; and on or before June 1 of each year, a report of its
financial condition at last year end with an independent certified
public accountant's opinion of the company's financial condition.
The section further allows for the captive insurance company to
request filing its annual report required under this section at its
fiscal year end. The section provides that a captive insurance
company using a fiscal year end must provide its balance sheet,
income statement, and statement of cash flows, verified by two
of its executive officers, before March 1 of each year to provide
sufficient detail to support a premium tax return.
Section 964.062 requires the commissioner to approve in ad-
vance any amendments to the captive insurance company's cer-
tificate of formation.
Section 964.063 requires a captive insurance company to notify
the commissioner in writing when issuing policyholder dividends.
Section 964.065 provides that the commissioner, after notice and
an opportunity for hearing, may revoke or suspend the certificate
of authority of a captive insurance company.
Section 964.066 provides that the commissioner may adopt rules
establishing standards to ensure that an affiliated company is
able to exercise control of the risk management function of any
controlled unaffiliated business to be insured by the captive in-
surance company.
Section 964.067 requires captive management companies to
register with the commissioner before providing administrative
services to a captive insurance company by providing the
required registration information on a form adopted by the
commissioner.
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. 601. Waiver of Taxes.
(a) A foreign or alien captive insurance company redomesti-
cating from another jurisdiction may request that the commissioner
postpone or waive the imposition of any tax or fee under the Insur-
ance 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 depart-
ment with the application.
(c) The request must state and provide support of the bene-
fit that licensing the captive insurance company will have for Texas,
including, as applicable, employment of Texas residents, the develop-
ment 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, includ-
ing 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.
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-201305160
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 H. DISCIPLINARY ACTION
28 TAC 6.701
STATUTORY AUTHORITY. The department proposes the new
section 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 8385
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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/m1/73/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.