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A BILL TO BE ENTITLED
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AN ACT
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relating to the formation, operation, and authority to engage in |
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business of insurance companies and other entities regulated under |
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the Insurance Code; restructuring or changing fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. FORMATION, OPERATION, AND AUTHORITY OF ENTITIES |
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SECTION 1.01. The heading to Chapter 801, Insurance Code, |
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is amended to read as follows: |
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CHAPTER 801. INCORPORATION; CERTIFICATE OF AUTHORITY |
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SECTION 1.02. Section 801.001(2), Insurance Code, is |
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amended to read as follows: |
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(2) "Insurer" or "insurance company" means the issuer |
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of an insurance policy that is issued to another in consideration of |
|
a premium and that insures against a loss that may be insured |
|
against under the law. The term includes [a]: |
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(A) a stock company operating under a valid |
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charter or certificate of authority [fraternal benefit society]; |
|
(B) a mutual company operating under a valid |
|
charter or certificate of authority [Lloyd's plan]; and |
|
(C) any of the following issuers, operating under |
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a valid certificate of authority [mutual company of any kind,
|
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including a]: |
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(i) a statewide mutual assessment |
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association; |
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(ii) a local mutual aid association or |
|
burial association; [and] |
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(iii) a county or farm mutual insurance |
|
company; |
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(iv) a [(D)] reciprocal or interinsurance |
|
exchange; |
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(v) a [(E)] group hospital service |
|
corporation; |
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(vi) a fraternal benefit society; |
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(vii) a Lloyd's plan; |
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(viii) a stipulated premium company; |
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(ix) a [(F)] health maintenance |
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organization; |
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(x) a [(G)] nonprofit legal services |
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corporation; and |
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(xi) any foreign [(H) stock] company, |
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alien company, port of entry, or branch office. |
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SECTION 1.03. Section 822.002, Insurance Code, is |
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transferred to Subchapter A, Chapter 801, Insurance Code, |
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redesignated as Section 801.0011, Insurance Code, and amended to |
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read as follows: |
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Sec. 801.0011 [822.002]. APPLICABILITY OF LAW GOVERNING |
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CORPORATIONS. An insurance company incorporated in this state is |
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subject to the Texas Business Organizations Code [Corporation Act,
|
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the Texas Miscellaneous Corporation Laws Act (Article 1302-1.01 et
|
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seq., Vernon's Texas Civil Statutes),] and any other law of this |
|
state that governs corporations in general to the extent those laws |
|
are not inconsistent with this code. |
|
SECTION 1.04. Chapter 801, Insurance Code, is amended by |
|
adding Subchapter A-1, and a heading is added to that subchapter to |
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read as follows: |
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SUBCHAPTER A-1. INCORPORATION OF INSURANCE COMPANIES; RELATED |
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REGULATORY REQUIREMENTS |
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SECTION 1.05. Section 822.051, Insurance Code, is |
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transferred to Subchapter A-1, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.021, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.021 [822.051]. FORMATION OF COMPANY; AUTHORITY OF |
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INSURER GENERALLY. (a) Any number of persons or incorporators may |
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form a company for the purpose of engaging in the business of |
|
insurance. |
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(b) To form a company, each incorporator must adopt and sign |
|
the articles of incorporation of the company as provided by this |
|
chapter [code]. |
|
(c) Incorporators shall appoint the initial board of |
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directors. The board must always have at least three members. The |
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initial board members shall appoint the officers or managers of the |
|
proposed insurer. On approval of the proposed insurer's |
|
incorporation and certificate of authority, the initial board |
|
members and the shareholders or members shall meet to formally |
|
appoint the board of directors and officers of the incorporated |
|
insurer. |
|
(d) The insurance company's board of directors, trustees, |
|
or managers shall adopt and amend bylaws that include provisions |
|
establishing the qualifications, duties, and terms of office of and |
|
the manner of electing directors, trustees, or managers and |
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officers of the company. The bylaws shall require, at a minimum, an |
|
annual meeting of the board of directors and shareholders or |
|
members at which directors and officers are appointed or elected. |
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(e) An insurer may sue or be sued. |
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(f) An insurer may make or enforce contracts in relation to |
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the insurer's business. |
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(g) An insurer may in the insurer's own name, or through a |
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trustee chosen by the board of directors, acquire, purchase, hold, |
|
and dispose of real and personal property to further the purposes of |
|
the insurer. |
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SECTION 1.06. Section 822.052, Insurance Code, is |
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transferred to Subchapter A-1, Chapter 801, Insurance Code, as |
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added by this Act, redesignated as Section 801.022, Insurance Code, |
|
and amended to read as follows: |
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Sec. 801.022 [822.052]. ARTICLES OF INCORPORATION. (a) |
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Articles of incorporation of a proposed insurance company must |
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state: |
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(1) the name of the insurance company; |
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(2) the address at which [location of] the insurance |
|
company's registered agent for service of process in this state is |
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located [company's principal business office]; |
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(3) the type of insurance company, whether a stock or |
|
mutual company; |
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(4) the kind of insurance business in which the |
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company proposes to engage; |
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(5) if the company is a stock company: |
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(A) [(4)] the amount of the company's authorized |
|
shares, the par value, if any, of the shares, and the amount of the |
|
initial shares fully issued and subscribed, representing initial |
|
funding, which should include minimum capital and minimum surplus; |
|
and |
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(B) if any shares do not have par value, a |
|
statement authenticated by the incorporators stating the number of |
|
shares without par value that are subscribed and the actual |
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consideration received by the company for those shares, |
|
representing initial funding, which should include minimum capital |
|
and minimum surplus [stock]; and |
|
(6) if the company is a mutual company, [(5)] the |
|
initial amount of the company's unencumbered surplus, which should |
|
include minimum unencumbered surplus, representing minimum |
|
requirements and initial funding. |
|
(b) Articles of incorporation must be submitted as part of |
|
an application to incorporate and obtain a certificate of authority |
|
to engage in the business of insurance in this state. The articles |
|
of incorporation must be submitted in a format prescribed by the |
|
commissioner. |
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SECTION 1.07. Sections 822.054 and 841.054, Insurance Code, |
|
are transferred to Subchapter A-1, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.023, Insurance Code, |
|
and amended to read as follows: |
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Sec. 801.023 [822.054]. CAPITAL STOCK AND SURPLUS |
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REQUIREMENTS. (a) A stock property and casualty [An] insurance |
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company must have capital stock in an amount of at least $2.5 |
|
million and surplus in an amount of at least $2.5 million. A mutual |
|
property and casualty insurance company must have unencumbered |
|
surplus of at least $5 million. |
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(b) [At the time of incorporation, the required capital and
|
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surplus must be in cash.
|
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[Sec.
841.054.
CAPITAL STOCK AND SURPLUS REQUIREMENTS.
|
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(a)] A stock life [domestic] insurance company must have capital |
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stock in an amount of at least $700,000 and surplus in an amount of |
|
at least $700,000. A mutual life insurance company must have |
|
unencumbered surplus of at least $1.4 million. |
|
(c) On the date of incorporation, the required capital, |
|
surplus, and unencumbered surplus must be in cash or a cash |
|
equivalent. |
|
(d) After [(b)
All of the capital stock required by
|
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Subsection (a) must be fully subscribed and paid up and delivered to
|
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the incorporators before the articles of incorporation are filed.
|
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[(c) At the time of] incorporation and the issuance of a |
|
certificate of authority to an insurance company, the minimum |
|
[required] capital stock and surplus of the company may [shall] |
|
consist only of: |
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(1) United States currency; |
|
(2) bonds of [the United States, this state, or a
|
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county or municipality of] this state; [or] |
|
(3) bonds or other evidences of indebtedness of the |
|
United States the principal and interest of which are guaranteed by |
|
the United States; |
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(4) bonds or other interest-bearing evidences of |
|
indebtedness of a county or municipality of this state; and |
|
(5) notes secured by first mortgages: |
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(A) on otherwise unencumbered real property in |
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this state the title to which is valid; and |
|
(B) the payment of which is insured wholly or |
|
partly by the United States. |
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(e) Not [government insured mortgage loans that are
|
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authorized by this chapter or Chapter 425, with not] more than 50 |
|
percent of the minimum [required] capital stock and minimum surplus |
|
of an insurance company may be invested in notes described by |
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Subsection (d)(5) [first mortgage real property loans]. |
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SECTION 1.08. Section 841.205, Insurance Code, is |
|
transferred to Subchapter A-1, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.024, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.024 [841.205]. COMMISSIONER MAY REQUIRE LARGER |
|
CAPITAL AND SURPLUS AMOUNTS. (a) The commissioner by rule or |
|
guideline may require a domestic insurance company [that writes or
|
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assumes a life insurance or annuity contract or assumes liability
|
|
on or indemnifies one person for any risk under an accident and
|
|
health insurance policy, or a combination of these policies, in an
|
|
amount that exceeds $10,000,] to maintain capital and surplus in |
|
amounts that exceed the minimum amounts required by this chapter |
|
because of: |
|
(1) the nature and kind of risks the company |
|
underwrites or reinsures; |
|
(2) the premium volume of risks the company |
|
underwrites or reinsures; |
|
(3) the composition, quality, duration, or liquidity |
|
of the company's investment portfolio; |
|
(4) fluctuations in the market value of securities the |
|
company holds; or |
|
(5) the adequacy of the company's reserves. |
|
(b) A rule adopted under Subsection (a) must be designed to |
|
ensure the financial solvency of an insurance company for the |
|
protection of policyholders. |
|
(c) A rule adopted under Subsection (a) [but] may not |
|
require that the total admitted assets of a life, health, or |
|
accident insurance company exceed 106 percent of its total |
|
liabilities. |
|
(d) An [(c)
A fraternal benefit society operating under
|
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Chapter 885 and a mutual life] insurance company that ceases to |
|
write or assume business continues to be [operating under Chapter
|
|
882 are] subject to [a rule adopted under] this section. |
|
SECTION 1.09. Section 841.206, Insurance Code, is |
|
transferred to Subchapter A-1, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.025, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.025 [841.206]. IMPAIRMENT OF CAPITAL AND SURPLUS. |
|
(a) An insurance company incorporated or authorized to engage in |
|
[do] the lines of business authorized in this chapter may not have: |
|
(1) the company's required capital impaired; |
|
(2) more than 90 percent of the company's required |
|
minimum surplus impaired; or |
|
(3) the surplus required under Section 801.024 |
|
[841.205] impaired. |
|
(b) If the commissioner determines that an insurance |
|
company's capital or surplus is impaired in violation of this |
|
section, the commissioner shall: |
|
(1) order the company to immediately reduce the level |
|
of impairment to an acceptable level of impairment as specified by |
|
the commissioner or prohibit the company from engaging in the |
|
business of insurance in this state; and |
|
(2) begin proceedings as necessary to determine any |
|
further actions with respect to the impairment. |
|
SECTION 1.10. Section 841.207, Insurance Code, is |
|
transferred to Subchapter A-1, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.026, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.026 [841.207]. ACTIONS OF COMMISSIONER WHEN |
|
CAPITAL AND SURPLUS REQUIREMENTS NOT SATISFIED. If an insurance |
|
company does not comply with the capital and surplus requirements |
|
of this chapter, the commissioner may order the insurance company |
|
to cease writing new business and may: |
|
(1) take action under Chapter 406, 441, or 443 [place
|
|
the insurance company under state supervision or conservatorship]; |
|
(2) declare the insurance company to be in a hazardous |
|
condition as provided by Subchapter A, Chapter 404; |
|
(3) declare the insurance company to be impaired as |
|
provided by Section 801.025 [841.206]; or |
|
(4) apply to the insurance company any other |
|
applicable sanction provided by this code. |
|
SECTION 1.11. Subchapter A-1, Chapter 801, Insurance Code, |
|
as added by this Act, is amended by adding Section 801.027 to read |
|
as follows: |
|
Sec. 801.027. EXAMINATION OF COMPANY. Unless otherwise |
|
expressly provided by this code, an insurance company organized |
|
under this chapter is subject to examination under Chapters 86, |
|
401, 751, and 823. |
|
SECTION 1.12. Section 822.053, Insurance Code, is |
|
transferred to Subchapter A-1, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.028, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.028 [822.053]. COMPANY [COMPANY'S] NAME. An |
|
insurance company's name may not be so similar to the name of |
|
another insurance company as to likely mislead the public. A mutual |
|
insurance company must have "mutual" in the company's name. |
|
SECTION 1.13. Section 982.304, Insurance Code, is |
|
transferred to Subchapter A-1, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.029, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.029 [982.304]. SAME OR DECEPTIVELY SIMILAR NAME. |
|
A foreign or alien insurance company may not be denied permission to |
|
engage in the business of insurance in this state because the name |
|
of the company is the same as or deceptively similar to the name of a |
|
domestic corporation existing under the laws of this state or of |
|
another foreign or alien insurance company authorized to engage in |
|
the business of insurance in this state if the company desiring to |
|
engage in the business of insurance in this state: |
|
(1) files with the department [and with any county
|
|
clerk as provided by Subchapter B or C, Chapter 71, Business &
|
|
Commerce Code,] an assumed name certificate stating a name |
|
permitted under the laws of this state; and |
|
(2) does not engage in any business in this state |
|
except under the assumed name. |
|
SECTION 1.14. Chapter 801, Insurance Code, is amended by |
|
adding Subchapter A-2, and a heading is added to that subchapter to |
|
read as follows: |
|
SUBCHAPTER A-2. ISSUANCE AND AMENDMENT OF CHARTER AND |
|
CERTIFICATE OF AUTHORITY |
|
SECTION 1.15. Section 822.057, Insurance Code, is |
|
transferred to Subchapter A-2, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.031, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.031 [822.057]. APPLICATION FOR CHARTER AND |
|
CERTIFICATE OF AUTHORITY. [(a)] To obtain a charter and |
|
certificate of authority [for an insurance company], the |
|
incorporators or managers must pay to the department a filing fee |
|
[the fees] prescribed by Chapter 202 and any applicable rules [law] |
|
and file with the department: |
|
(1) an application for a charter and certificate of |
|
authority on the most current version of the form adopted by the |
|
National Association of Insurance Commissioners for that purpose |
|
[and containing the information prescribed by the commissioner]; |
|
(2) the [company's] proposed articles of |
|
incorporation; and |
|
(3) [an affidavit made by the incorporators or
|
|
officers of the company that states that:
|
|
[(A)
the capital and surplus is the bona fide
|
|
property of the company; and
|
|
[(B)
the information in the articles of
|
|
incorporation is true and correct; and
|
|
[(4)] if the application provides for the issuance of |
|
shares of stock without par value, a certificate authenticated by |
|
the incorporators or officers stating: |
|
(A) the number of shares without par value that |
|
are subscribed; and |
|
(B) the actual consideration received by the |
|
insurance company for those shares. |
|
[(b)
If the commissioner is not satisfied with the affidavit
|
|
filed under Subsection (a)(3), the commissioner may require that
|
|
the incorporators provide at their expense additional evidence of a
|
|
matter required in the affidavit before the commissioner:
|
|
[(1)
receives the proposed articles of incorporation
|
|
or the application for charter; or
|
|
[(2)
issues a certificate of authority to the
|
|
company.] |
|
SECTION 1.16. Section 822.060, Insurance Code, is |
|
transferred to Subchapter A-2, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.032, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.032 [822.060]. ACTION ON CHARTER AND CERTIFICATE |
|
APPLICATION OR CHARTER OR CERTIFICATE AMENDMENT APPLICATION. (a) |
|
In considering an [the] application for a charter and certificate |
|
of authority or an application to amend a charter or certificate of |
|
authority, the commissioner shall conduct an examination, limited |
|
to the filed application and related information, including a |
|
review to determine whether [if]: |
|
(1) the proposed capital structure of the company |
|
meets the requirements of this code; |
|
(2) the proposed officers, directors, attorney in |
|
fact, or managing head of the company have sufficient insurance |
|
experience, ability, standing, and good record to make success of |
|
the [proposed] company probable; |
|
(3) the company's funding plan and operational |
|
history, if any, demonstrate that the operation or expanded |
|
operation of the company in this state or its operations outside |
|
this state will not create a condition that might be hazardous to |
|
the company's policyholders or creditors or to the public; |
|
(4) for a proposed charter amendment that eliminates |
|
the company's power to engage in one or more kinds of insurance |
|
business, all liabilities incidental to the exercise of the |
|
eliminated charter power have been terminated or wholly reinsured; |
|
(5) the property involved in an increase of capital or |
|
surplus, or both, is: |
|
(A) properly valued; and |
|
(B) in the form authorized by this code; and |
|
(6) [(3)] the applicants are acting in good faith. |
|
(b) If the commissioner determines that the applicant has |
|
not met the standards set out by Subsection (a), the commissioner |
|
shall deny the application in writing, giving the reason for the |
|
denial. |
|
(c) If the commissioner does not deny the application under |
|
Subsection (b), the commissioner shall approve the application for |
|
or amendment of the charter or certificate of authority. [On
|
|
approval of an application, the articles of incorporation of the
|
|
company shall be filed with the department.] |
|
(d) On the applicant's request, the commissioner shall hold |
|
a hearing on a denial. Not later than the 30th day after the date |
|
of the applicant's request for a hearing, the commissioner shall |
|
request a hearing date. |
|
SECTION 1.17. Section 801.151, Insurance Code, is |
|
transferred to Subchapter A-2, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.033, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.033 [801.151]. CERTAIN FELONIES; ISSUANCE OF |
|
CERTIFICATE PROHIBITED. The [Except as provided by Sections
|
|
801.153 and 801.154, the] department may not issue a certificate of |
|
authority to an applicant if a corporate officer, [or] member of the |
|
board of directors, or person having control of the applicant has |
|
been convicted of a felony involving: |
|
(1) moral turpitude; or |
|
(2) breach of a fiduciary duty. |
|
SECTION 1.18. Section 801.152, Insurance Code, is |
|
transferred to Subchapter A-2, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.034, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.034 [801.152]. CERTAIN FELONIES; REVOCATION OF |
|
CERTIFICATE. The [After notice and hearing, the] department may |
|
revoke the certificate of authority of an insurer if a corporate |
|
officer, [or] member of the board of directors, or person having |
|
control of the insurer is convicted of a felony involving: |
|
(1) moral turpitude; or |
|
(2) breach of a fiduciary duty. |
|
SECTION 1.19. Sections 801.153, 801.154, and 801.155, |
|
Insurance Code, are transferred to Subchapter A-2, Chapter 801, |
|
Insurance Code, as added by this Act, redesignated as Section |
|
801.035, Insurance Code, and amended to read as follows: |
|
Sec. 801.035 [801.153]. PETITION FOR ISSUANCE OR |
|
REINSTATEMENT OF CERTIFICATE. (a) An insurance [A] company may |
|
petition the commissioner for issuance or reinstatement of a |
|
certificate of authority of the company that is denied or revoked |
|
under Section 801.033 or 801.034 [this subchapter]: |
|
(1) not earlier than the later of: |
|
(A) the fifth anniversary of the date of the |
|
final conviction; or |
|
(B) if the officer, [or] director, or person |
|
having control is sentenced to confinement or imprisonment or |
|
placed on community supervision, the fifth anniversary of the date |
|
the person [officer or director] completes the sentence or period |
|
of community supervision; or |
|
(2) after the person [officer or director] ceases to |
|
be an officer or director of the insurer or relinquishes control of |
|
the insurer, as applicable. |
|
(b) [Sec. 801.154. GRANT OF PETITION.] The commissioner |
|
shall grant a petition for issuance or reinstatement of a |
|
certificate of authority under this section [subchapter] if the |
|
petitioner demonstrates that granting the petition would be in the |
|
public interest and that justice would best be served by granting |
|
the petition. |
|
(c) [Sec.
801.155.
RULES RELATING TO CONTENTS OF
|
|
PETITION.] The department may adopt rules [under this subchapter] |
|
prescribing the contents of a petition for issuance or |
|
reinstatement of a certificate of authority under this section. |
|
SECTION 1.20. Subchapter A-2, Chapter 801, Insurance Code, |
|
as added by this Act, is amended by adding Section 801.036 to read |
|
as follows: |
|
Sec. 801.036. ADOPTION OF NATIONAL ASSOCIATION OF INSURANCE |
|
COMMISSIONERS LICENSING STANDARDS. (a) A domestic, foreign, or |
|
alien insurance company applying to become authorized to engage in |
|
the business of insurance in this state must use the most current |
|
version of any processes and related forms adopted by the National |
|
Association of Insurance Commissioners for charter and license |
|
application. |
|
(b) A domestic, foreign, or alien insurance company |
|
authorized to engage in the business of insurance in this state that |
|
requests an amendment to a charter or certificate of authority must |
|
use the most current version of applicable processes and forms |
|
adopted by the National Association of Insurance Commissioners. |
|
(c) An insurer authorized under this chapter shall provide |
|
written notice to the department, in the manner prescribed by the |
|
commissioner by rule, of a change in contact information or a change |
|
of officers or directors not later than the 30th day after the date |
|
of the change. |
|
(d) This section does not relieve an insurer of any |
|
obligation imposed under Chapter 823. |
|
(e) The commissioner may exempt any class of insurance |
|
companies from the requirements of this section if the commissioner |
|
determines the information required under this section is not |
|
useful for regulatory purposes with respect to that class of |
|
companies. |
|
SECTION 1.21. Section 822.155, Insurance Code, is |
|
transferred to Subchapter A-2, Chapter 801, Insurance Code, as |
|
added by this Act, redesignated as Section 801.037, Insurance Code, |
|
and amended to read as follows: |
|
Sec. 801.037 [822.155]. APPLICATION FOR AMENDMENT OF |
|
CHARTER. A domestic insurance company may amend its charter by |
|
[paying to the commissioner a fee in the amount determined under
|
|
Chapter 202 and by] filing with the department: |
|
(1) an application for a charter amendment on the form |
|
and containing the information prescribed by the commissioner; and |
|
(2) the company's proposed amendment. |
|
SECTION 1.22. Section 801.052, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 801.052. EFFECT AND CONTENTS OF CERTIFICATE. (a) A |
|
certificate of authority issued to an insurer under this chapter |
|
authorizes the insurer to engage in the business of insurance. The |
|
certificate of authority must state the specific lines of business |
|
or kinds of insurance authorized under the certificate. |
|
(b) In this section, "line of business" and "kind of |
|
insurance" include each line of business or kind of insurance |
|
listed in Subsections (c), (d), and (e) and any line of business or |
|
kind of insurance promulgated on the annual statement pages for |
|
which financial data is required to be reported by the insurer or |
|
health maintenance organization. |
|
(c) For an insurer required to file a life and accident and |
|
health annual statement, each of the following is a line of |
|
business: |
|
(1) ordinary life; |
|
(2) group and individual credit life; |
|
(3) group life; |
|
(4) industrial life; |
|
(5) ordinary annuity; |
|
(6) group annuity; |
|
(7) ordinary annuity and other fund deposits (variable |
|
life or variable annuity); |
|
(8) group annuity and other fund deposits (variable |
|
life or variable annuity); |
|
(9) guaranteed investment contracts, funding |
|
agreements, or similar instruments not based on mortality or |
|
morbidity contingencies; |
|
(10) small employer coverage; |
|
(11) group and individual credit accident and health; |
|
(12) individual accident and health coverage, |
|
including collectively renewable accident and health, |
|
noncancelable accident and health, guaranteed renewable accident |
|
and health, nonrenewable for stated reasons only accident and |
|
health, and other accident only; |
|
(13) group accident and health other than association, |
|
large employer, or small employer coverage; |
|
(14) Medicare Plus Choice plan; |
|
(15) coverage under the state child health plan |
|
program commonly known as CHIP; |
|
(16) association coverage; |
|
(17) large employer coverage; and |
|
(18) Medicare supplement. |
|
(d) For an insurer required to file a property and casualty |
|
annual statement, each of the following is a kind of insurance: |
|
(1) fire; |
|
(2) allied lines; |
|
(3) earthquake; |
|
(4) flood; |
|
(5) farm owners multiple peril; |
|
(6) homeowners multiple peril; |
|
(7) Texas commercial multiple peril (non-liability |
|
portion); |
|
(8) growing crops (all other); |
|
(9) multiple peril crop; |
|
(10) inland marine; |
|
(11) ocean marine; |
|
(12) small employer coverage; |
|
(13) group and individual credit accident and health; |
|
(14) individual accident and health coverage, |
|
including collectively renewable accident and health, |
|
noncancelable accident and health, guaranteed renewable accident |
|
and health, nonrenewable for stated reasons only accident and |
|
health, and other accident only; |
|
(15) group accident and health other than association, |
|
large employer, or small employer coverage; |
|
(16) Medicare Plus Choice plans; |
|
(17) coverage under the state child health plan |
|
program commonly known as CHIP; |
|
(18) association coverage; |
|
(19) large employer coverage; |
|
(20) workers' compensation or employers liability; |
|
(21) Texas commercial multiple peril (liability |
|
portion); |
|
(22) financial guaranty; |
|
(23) medical malpractice liability for physicians, |
|
including surgeons and osteopaths; |
|
(24) medical malpractice liability for health care |
|
professionals other than physicians; |
|
(25) medical malpractice liability for hospitals; |
|
(26) medical malpractice liability for health care |
|
facilities other than hospitals; |
|
(27) product liability; |
|
(28) other general liability, including professional |
|
liability; |
|
(29) fidelity and surety; |
|
(30) bail bonds; |
|
(31) glass; |
|
(32) burglary and theft, including forgery; |
|
(33) boiler and machinery; |
|
(34) credit; |
|
(35) type I and type II mortgage guaranty; |
|
(36) aircraft (all perils); |
|
(37) private passenger auto no-fault personal injury |
|
protection; |
|
(38) other private passenger auto liability; |
|
(39) commercial auto no-fault personal injury |
|
protection; |
|
(40) other commercial auto liability; |
|
(41) private passenger auto physical damage; |
|
(42) commercial auto physical damage; |
|
(43) hail (growing crops only); |
|
(44) rain; |
|
(45) title; |
|
(46) livestock mortality; |
|
(47) Medicare supplement; and |
|
(48) warranty, including contractual liability. |
|
(e) For a health maintenance organization or insurer |
|
required to file a health annual statement, each of the following is |
|
a line of business: |
|
(1) small employer coverage; |
|
(2) large employer coverage; |
|
(3) health care services for Medicaid delivered under |
|
a contract with the Health and Human Services Commission; |
|
(4) health care services for Medicare or a Medicare |
|
Plus Choice plan delivered under a contract with the federal |
|
Centers for Medicare and Medicaid Services; |
|
(5) coverage under the state child health plan program |
|
commonly known as CHIP; |
|
(6) individual coverage; |
|
(7) association coverage; |
|
(8) limited service group coverage; |
|
(9) limited service individual coverage; |
|
(10) single service group coverage; |
|
(11) single service individual coverage; and |
|
(12) Medicare supplement. |
|
SECTION 1.23. Section 801.055, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 801.055. DEPOSIT OF FEES. A fee collected by the |
|
department under this chapter for a charter or certificate of |
|
authority shall be deposited to the credit of the Texas Department |
|
of Insurance operating account. |
|
SECTION 1.24. Section 801.056(b), Insurance Code, is |
|
amended to read as follows: |
|
(b) The department may deny an application for an |
|
authorization if the applicant or a corporate officer, director, or |
|
person having control of the applicant fails to provide a complete |
|
set of fingerprints on request by the department. |
|
SECTION 1.25. Section 801.057, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 801.057. FAILURE TO FILE ANNUAL OR QUARTERLY |
|
STATEMENT: GROUND FOR REVOCATION OR SUSPENSION. A certificate of |
|
authority of an insurer that fails to file an annual or quarterly |
|
statement required by law is subject to being suspended or revoked |
|
by the department. |
|
SECTION 1.26. The heading to Chapter 802, Insurance Code, |
|
is amended to read as follows: |
|
CHAPTER 802. ANNUAL AND QUARTERLY STATEMENTS; ACCOUNTING AND |
|
FINANCIAL STANDARDS [STATEMENT] |
|
SECTION 1.27. Sections 802.001, 802.002, and 802.003, |
|
Insurance Code, are amended to read as follows: |
|
Sec. 802.001. APPLICABILITY OF CHAPTER [FORM OF ANNUAL
|
|
STATEMENT]. This chapter applies to all insurers and certain other |
|
regulated entities authorized to engage in the business of |
|
insurance in this state, including: |
|
(1) life insurers; |
|
(2) accident insurers; |
|
(3) life and accident insurers; |
|
(4) life and health insurers; |
|
(5) accident and health insurers; |
|
(6) life, accident, and health insurers; |
|
(7) mutual life insurers; |
|
(8) stipulated premium insurers; |
|
(9) limited purpose subsidiary life insurance |
|
companies under Subchapter I, Chapter 841; |
|
(10) group hospital service corporations; |
|
(11) fire insurers; |
|
(12) fire and marine insurers; |
|
(13) United States branches of alien insurers; |
|
(14) Mexican casualty insurers; |
|
(15) general casualty insurers; |
|
(16) fire and casualty insurers; |
|
(17) mutual insurers other than life; |
|
(18) statewide mutual assessment companies; |
|
(19) local mutual aid associations; |
|
(20) mutual burial associations; |
|
(21) exempt associations; |
|
(22) county mutual insurers; |
|
(23) Lloyd's plans; |
|
(24) reciprocal and interinsurance exchanges; |
|
(25) domestic risk retention groups; |
|
(26) domestic joint underwriting associations; |
|
(27) title insurers; |
|
(28) fraternal benefit societies; |
|
(29) farm mutual insurers; |
|
(30) health maintenance organizations; |
|
(31) nonprofit health corporations; |
|
(32) nonprofit legal services corporations; |
|
(33) the Texas Health Insurance Pool; |
|
(34) the Texas Mutual Insurance Company; |
|
(35) the Texas Windstorm Insurance Association; and |
|
(36) the Texas FAIR Plan Association. [(a) The
|
|
commissioner, as necessary to obtain an accurate indication of the
|
|
company's condition and method of transacting business, may change
|
|
the form of any annual statement required to be filed by any kind of
|
|
insurance company.
|
|
[(b)
The form may require only information that relates to
|
|
the business of the insurance company.] |
|
Sec. 802.002. ANNUAL STATEMENT; QUARTERLY STATEMENT; |
|
ACTUARIAL OPINION [REQUIRED]. (a) Insurers and other regulated |
|
entities must properly report each calendar year to the department |
|
and the National Association of Insurance Commissioners by |
|
completing, in accordance with applicable instructions, due dates, |
|
and rules, the appropriate paper copy annual and quarterly |
|
statement blanks, other reporting forms, and electronic filings |
|
specified in this section and applicable rules. |
|
(b) Each insurer and other regulated entity authorized to |
|
engage in the business of insurance in this state must file its |
|
annual statement using: |
|
(1) the annual statement blanks, the quarterly |
|
statement blanks, the annual and quarterly supplemental reporting |
|
forms, and the related instruction manuals as adopted and published |
|
by the National Association of Insurance Commissioners each year; |
|
and |
|
(2) any reporting forms unique to this state required |
|
by the commissioner by rule. |
|
(c) If an insurer or other regulated entity fails to deliver |
|
an annual or quarterly statement in a timely manner, the department |
|
shall notify the insurer or other entity that the insurer or other |
|
entity may not issue new insurance until the date the statement is |
|
delivered to the department. |
|
(d) In this section, "qualified actuary" means: |
|
(1) a member in good standing of the American Academy |
|
of Actuaries; or |
|
(2) a person who has otherwise demonstrated actuarial |
|
competence to the satisfaction of the commissioner or an insurance |
|
regulatory official of another state in which the insurance company |
|
is domiciled. |
|
(e) [(b)] An insurer's or other regulated entity's |
|
[insurance company's] annual statement must include a statement of |
|
a qualified actuary, as prescribed by this section and applicable |
|
rules, entitled "Statement of Actuarial Opinion," that: |
|
(1) is located on or is attached to the first page of |
|
the annual statement; and |
|
(2) provides the opinion of the actuary relating to |
|
policy reserves and other actuarial items for life insurance, |
|
accident and health insurance, and annuities, or loss and loss |
|
adjustment expense reserves for property and casualty risks, as |
|
described in the annual statement instructions of the National |
|
Association of Insurance Commissioners as appropriate for the type |
|
of risks insured. |
|
Sec. 802.003. FILING DATE OF ANNUAL OR QUARTERLY STATEMENT |
|
DELIVERED BY POSTAL SERVICE. Except as otherwise specifically |
|
provided, for an annual or quarterly statement that is required to |
|
be filed in the offices of the commissioner and that is delivered by |
|
the United States Postal Service to the offices of the commissioner |
|
after the date on which the [annual] statement is required to be |
|
filed, the date of filing is the date of: |
|
(1) the postal service postmark stamped on the cover |
|
in which the document is mailed; or |
|
(2) any other evidence of mailing authorized by the |
|
postal service reflected on the cover in which the document is |
|
mailed. |
|
SECTION 1.28. Sections 802.052, 802.053, 802.054, 802.055, |
|
and 802.056, Insurance Code, are redesignated as Sections 802.004, |
|
802.005, 802.006, 802.007, and 802.008, Insurance Code, and amended |
|
to read as follows: |
|
Sec. 802.004 [802.052]. CONCURRENT FILING WITH NATIONAL |
|
ASSOCIATION OF INSURANCE COMMISSIONERS. (a) Each domestic, |
|
foreign, or alien insurance company or other regulated entity to |
|
which this chapter applies authorized to engage in the business of |
|
insurance in this state shall file a copy of the company's annual |
|
and quarterly statements [statement] with the National Association |
|
of Insurance Commissioners at the time the company files the |
|
statements [statement] with the commissioner. |
|
(b) The statements [statement] required by Subsection (a) |
|
must: |
|
(1) meet requirements adopted by the commissioner, |
|
including: |
|
(A) a change in substance or form; |
|
(B) an additional filing; and |
|
(C) any requirement that the statement be in a |
|
computer compatible format; and |
|
(2) include the signed jurat page and the actuarial |
|
opinion, as required by the jurisdiction in which the insurance |
|
company is domiciled. |
|
(c) The insurance company shall also file with the National |
|
Association of Insurance Commissioners a copy of any amendment or |
|
addition to the annual or quarterly statements [statement] that is |
|
subsequently filed with the commissioner. |
|
Sec. 802.005 [802.053]. EXEMPTION AUTHORITY. The |
|
commissioner may exempt any class of insurance companies from the |
|
requirements of this chapter [subchapter] if the commissioner |
|
believes the information required under this chapter [subchapter] |
|
will not be useful for regulatory purposes with respect to that |
|
class. |
|
Sec. 802.006 [802.054]. COMPLIANCE. The commissioner may |
|
consider a foreign insurance company to be in compliance with the |
|
requirements of Section 802.004 [802.052] if the company is |
|
domiciled in a state with a law substantially similar to that |
|
section. |
|
Sec. 802.007 [802.055]. COSTS PAID BY INSURANCE COMPANY. |
|
An insurance company shall pay all costs of preparing and |
|
furnishing to the National Association of Insurance Commissioners |
|
the information required under Section 802.004 [802.052], |
|
including any related filing fees. |
|
Sec. 802.008 [802.056]. STATUS OF REPORTS AND OTHER |
|
INFORMATION. A report or any other information resulting from the |
|
collection, review, analysis, and distribution of information |
|
developed from the filing of annual statement convention blanks and |
|
provided to the department by the National Association of Insurance |
|
Commissioners is considered part of the process of examination of |
|
insurance companies under this code, including Chapters 86, [and] |
|
401, and 823. |
|
SECTION 1.29. Chapter 802, Insurance Code, is amended by |
|
adding Section 802.009 to read as follows: |
|
Sec. 802.009. ADOPTION OF ACCOUNTING AND FINANCIAL |
|
STANDARDS. (a) Each domestic, foreign, or alien insurance company |
|
authorized to engage in the business of insurance in this state |
|
shall use the applicable Accounting Practices and Procedures |
|
Manual, Supplements, Amendments, and related guidance as adopted |
|
and published by the National Association of Insurance |
|
Commissioners each year, subject to any exceptions and |
|
modifications prescribed by the commissioner by rule. The |
|
department shall adopt the Accounting Practices and Procedures |
|
Manual and related guidance as adopted and published by the |
|
National Association of Insurance Commissioners each year, subject |
|
to any exceptions and modifications prescribed by the commissioner |
|
by rule, as the source of accounting principles for the department |
|
when analyzing financial reports and for conducting statutory |
|
examinations and rehabilitations of insurers and health |
|
maintenance organizations authorized to engage in the business of |
|
insurance in this state, except as otherwise provided by law. |
|
(b) Each domestic, foreign, or alien insurance company |
|
authorized to engage in the business of insurance in this state |
|
shall use and comply with the Risk-Based Capital Report Including |
|
Overview and Instructions for Companies, as appropriate based on |
|
the particular line of business, and the risk-based capital |
|
formulas contained in the report, as adopted and published by the |
|
National Association of Insurance Commissioners annually, subject |
|
to any exceptions and modifications prescribed by the commissioner |
|
by rule. Each company subject to this subsection must file an |
|
electronic version of the company's yearly Risk-Based Capital |
|
Report and any supplemental forms and reports with the National |
|
Association of Insurance Commissioners in accordance with and by |
|
the due dates specified in the instructions. |
|
(c) An insurer providing only casualty insurance as defined |
|
by Chapter 822 may include in the insurer's assets, if the total |
|
value of the equipment exceeds $2,000, the value of all electronic |
|
machines that are part of a data processing system and of all other |
|
office equipment, furniture, machines, and labor-saving devices |
|
purchased for and used in connection with the business of the |
|
insurer to the extent that the total actual cash market value of |
|
those assets is less than five percent of the other admitted assets |
|
of the insurer. |
|
SECTION 1.30. The heading to Chapter 822, Insurance Code, |
|
is amended to read as follows: |
|
CHAPTER 822. GENERAL [INCORPORATION AND] REGULATORY |
|
REQUIREMENTS FOR INSURANCE COMPANIES OTHER THAN LIFE, |
|
HEALTH, OR ACCIDENT INSURANCE COMPANIES |
|
SECTION 1.31. Sections 822.001 and 822.201, Insurance Code, |
|
are amended to read as follows: |
|
Sec. 822.001. APPLICABILITY OF CHAPTER. Except as |
|
otherwise provided by this code, this chapter applies to [the
|
|
formation of] each company or organization engaging [that proposes
|
|
to engage] in any kind of insurance business other than a life, |
|
health, or accident insurance company [organized or] operating |
|
under Chapter 841, 881, 882, 884, 885, 886, 887, or 888. |
|
Sec. 822.201. APPLICABILITY OF CAPITAL AND SURPLUS |
|
REQUIREMENTS. The capital and surplus requirements of this chapter |
|
and Chapter 801 apply to each insurance company or other entity, |
|
other than a farm mutual insurance company, authorized to write |
|
property and casualty insurance in this state including: |
|
(1) a county mutual insurance company; |
|
(2) a mutual insurance company, other than a mutual |
|
life insurance company; |
|
(3) a Lloyd's plan; and |
|
(4) a reciprocal or interinsurance exchange. |
|
SECTION 1.32. Section 822.206(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) An insurance company may, on prior approval of the |
|
department and subject to Chapter 823, purchase outstanding shares |
|
of the company's capital stock in accordance with the Texas |
|
Business Corporation Act either by making a tender offer or by |
|
entering into a negotiated private transaction. |
|
SECTION 1.33. Section 822.207(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) On prior approval of the commissioner and subject to |
|
Chapter 823, an insurance company, the capital stock of which is |
|
listed on a national securities exchange, may purchase from time to |
|
time outstanding shares of the company's capital stock on the open |
|
market. The shares must be purchased: |
|
(1) in the name of the company for its own account; and |
|
(2) in accordance with the Texas Business Corporation |
|
Act. |
|
SECTION 1.34. Sections 822.212(a) and (b), Insurance Code, |
|
are amended to read as follows: |
|
(a) Notwithstanding Chapter 801 [Section 822.203], to |
|
engage in the kinds of insurance business for which an insurance |
|
company organized under this chapter holds a certificate of |
|
authority in this state, an insurance company organized under this |
|
chapter that on September 1, 2009, had less than the minimum amount |
|
of capital and surplus required for a newly incorporated company |
|
under Chapter 801 [Section 822.054] must: |
|
(1) not later than December 31, 2010, have increased |
|
the amount of its capital by at least 10 percent of the difference |
|
between the amount of minimum capital required for a newly |
|
incorporated company under former Section 822.054 and the amount of |
|
the company's capital on December 31, 2009; |
|
(2) not later than December 31, 2011, have increased |
|
the amount of its capital by at least 20 percent of the difference |
|
between the amount of minimum capital required for a newly |
|
incorporated company under former Section 822.054 and the amount of |
|
the company's capital on December 31, 2009; |
|
(3) not later than December 31, 2012, have increased |
|
the amount of its capital by at least 30 percent of the difference |
|
between the amount of minimum capital required for a newly |
|
incorporated company under former Section 822.054 and the amount of |
|
the company's capital on December 31, 2009; |
|
(4) not later than December 31, 2013, have increased |
|
the amount of its capital by at least 40 percent of the difference |
|
between the amount of minimum capital required for a newly |
|
incorporated company under Chapter 801 [Section 822.054] and the |
|
amount of the company's capital on December 31, 2009; |
|
(5) not later than December 31, 2014, have increased |
|
the amount of its capital by at least 50 percent of the difference |
|
between the amount of minimum capital required for a newly |
|
incorporated company under Chapter 801 [Section 822.054] and the |
|
amount of the company's capital on December 31, 2009; |
|
(6) not later than December 31, 2015, have increased |
|
the amount of its capital by at least 60 percent of the difference |
|
between the amount of minimum capital required for a newly |
|
incorporated company under Chapter 801 [Section 822.054] and the |
|
amount of the company's capital on December 31, 2009; |
|
(7) not later than December 31, 2016, have increased |
|
the amount of its capital by at least 70 percent of the difference |
|
between the amount of minimum capital required for a newly |
|
incorporated company under Chapter 801 [Section 822.054] and the |
|
amount of the company's capital on December 31, 2009; |
|
(8) not later than December 31, 2017, have increased |
|
the amount of its capital by at least 80 percent of the difference |
|
between the amount of minimum capital required for a newly |
|
incorporated company under Chapter 801 [Section 822.054] and the |
|
amount of the company's capital on December 31, 2009; |
|
(9) not later than December 31, 2018, have increased |
|
the amount of its capital by at least 90 percent of the difference |
|
between the amount of minimum capital required for a newly |
|
incorporated company under Chapter 801 [Section 822.054] and the |
|
amount of the company's capital on December 31, 2009; and |
|
(10) not later than December 31, 2019, have at least |
|
the minimum amount of capital required under Chapter 801 [Section
|
|
822.054] for a newly incorporated company. |
|
(b) An insurance company that on September 1, 2009, had less |
|
than the minimum amount of capital and surplus required for a newly |
|
incorporated company under former Section 822.054 shall |
|
immediately increase the amount of its capital and surplus to an |
|
amount equal to the required amount of capital and surplus under |
|
Chapter 801 [Section 822.054] if there is: |
|
(1) a change in the control of at least 50 percent of |
|
the voting securities of the insurance company; |
|
(2) a change in the control of at least 50 percent of |
|
the voting securities of a holding company controlling the |
|
insurance company; or |
|
(3) a change in control of at least 50 percent by any |
|
other method of control if the insurance company or holding company |
|
is not controlled by voting securities. |
|
SECTION 1.35. Chapter 822, Insurance Code, is amended by |
|
adding Subchapter F to read as follows: |
|
SUBCHAPTER F. PROVISIONS APPLICABLE TO CASUALTY COMPANIES |
|
Sec. 822.251. DEFINITIONS. (a) In this subchapter, |
|
"casualty company" means an insurer engaging in the business of |
|
insurance under Chapter 801 that writes marine insurance, including |
|
insurance against hazards and perils incident to war, or insures: |
|
(1) a person against: |
|
(A) bodily injury, disability, or death that |
|
results from an accident; or |
|
(B) disability that results from disease; |
|
(2) against loss or damage that results from an |
|
accident or injury sustained by: |
|
(A) an employee or other person, for which |
|
accident or injury the insured is liable; or |
|
(B) a person, for which loss the insured is |
|
liable, other than employers liability insurance under Paragraph |
|
(A); |
|
(3) against loss or damage by: |
|
(A) burglary, theft, or housebreaking; or |
|
(B) water to goods or premises that arises from |
|
the breakage or leakage of a sprinkler or water pipe; |
|
(4) glass against breakage; |
|
(5) a steam boiler, elevator, electrical device, or |
|
engine and any machinery or appliance used or operated in |
|
connection with a steam boiler, elevator, electrical device, or |
|
engine; |
|
(6) against loss or damage from injury to a person or |
|
property that results accidentally from an item described by |
|
Subdivision (5); |
|
(7) against loss that: |
|
(A) results from accidental damage to an |
|
automobile; or |
|
(B) is caused accidentally by an automobile; |
|
(8) a person, association, or corporation against loss |
|
or damage that results from giving or extending credit; |
|
(9) against loss that results from the nonpayment of |
|
the principal of or interest on a bond, mortgage, or other evidence |
|
of indebtedness; or |
|
(10) against any other casualty or insurance risk, |
|
other than fire or life insurance, specified in the company's |
|
articles of incorporation that: |
|
(A) may be lawfully made the subject of |
|
insurance; and |
|
(B) is not otherwise provided for by this |
|
chapter. |
|
(b) A casualty company may insure one or more risks listed |
|
in Subsection (a). |
|
SECTION 1.36. Section 861.154, Insurance Code, is |
|
transferred to Subchapter F, Chapter 822, Insurance Code, as added |
|
by this Act, redesignated as Section 822.252, Insurance Code, and |
|
amended to read as follows: |
|
Sec. 822.252 [861.154]. DIVIDENDS. Except as authorized by |
|
Sections 403.001 and 403.051, the directors of a [general] casualty |
|
company may not issue dividends. |
|
SECTION 1.37. Section 861.251, Insurance Code, is |
|
transferred to Subchapter F, Chapter 822, Insurance Code, as added |
|
by this Act, redesignated as Section 822.253, Insurance Code, and |
|
amended to read as follows: |
|
Sec. 822.253 [861.251]. MINIMUM CAPITAL AND SURPLUS. (a) |
|
[A general casualty company must have at least the minimum capital
|
|
and surplus applicable to casualty, fidelity, guaranty, surety, and
|
|
trust companies under Sections 822.054, 822.210, and 822.211. At
|
|
the time of incorporation, the required capital and surplus must be
|
|
in cash.
|
|
[(b)] After incorporation and issuance of a certificate of |
|
authority, a [general] casualty company shall invest the minimum |
|
capital and surplus as provided by Section 801.023 [822.204]. The |
|
company shall invest all other funds [of the company] in excess of |
|
the minimum capital and surplus as provided by: |
|
(1) a provision of Subchapter B, Chapter 424, other |
|
than Section 424.052, 424.072, or 424.073; and |
|
(2) Section 862.002. |
|
(b) [(c)] A [general] casualty company may not loan any part |
|
of the company's capital or paid in surplus to an officer of the |
|
company. |
|
SECTION 1.38. Section 861.255, Insurance Code, is |
|
transferred to Subchapter F, Chapter 822, Insurance Code, as added |
|
by this Act, redesignated as Section 822.254, Insurance Code, and |
|
amended to read as follows: |
|
Sec. 822.254 [861.255]. RULES REGARDING CERTAIN ASSETS. |
|
(a) The value of the electronic machines and systems, office |
|
equipment, furniture, other machines, and labor-saving devices |
|
specified in Chapter 802 [Section 861.254(c)(9), as determined
|
|
under this section] and in accordance with rules adopted by the |
|
commissioner[,] is an admitted asset of the company. |
|
(b) The commissioner may adopt rules: |
|
(1) defining electronic machines and systems, office |
|
equipment, furniture, other machines, and labor-saving devices as |
|
specified in Chapter 802; [Section 861.254(c)(9)] and |
|
(2) stating the maximum period for which each class of |
|
equipment may be amortized. |
|
SECTION 1.39. Section 861.258, Insurance Code, is |
|
transferred to Subchapter F, Chapter 822, Insurance Code, as added |
|
by this Act, redesignated as Section 822.255, Insurance Code, and |
|
amended to read as follows: |
|
Sec. 822.255 [861.258]. REAL PROPERTY. (a) A [general] |
|
casualty company is subject to Section 862.002 and may not |
|
purchase, hold, or convey real property except as authorized by |
|
that section. |
|
(b) A [general] casualty company shall sell real property |
|
acquired in compliance with Subsection (a) not later than the 10th |
|
anniversary of the date the real property was acquired. |
|
(c) A [general] casualty company may retain real property |
|
after the date specified by Subsection (b) if the commissioner |
|
issues a certificate stating: |
|
(1) that sale of the real property in compliance with |
|
Subsection (b) would cause the company to incur a material loss; and |
|
(2) a later date by which the real property must be |
|
sold. |
|
(d) Subsection (b) does not apply to: |
|
(1) real property occupied by buildings used in whole |
|
or in part by a [general] casualty company in the transaction of |
|
business; |
|
(2) an interest in minerals or royalty reserved on the |
|
sale of real property acquired under Sections 862.002(c)(1)-(3); |
|
and |
|
(3) investment real property acquired under Section |
|
424.064. |
|
SECTION 1.40. Section 861.701, Insurance Code, is |
|
transferred to Subchapter F, Chapter 822, Insurance Code, as added |
|
by this Act, redesignated as Section 822.256, Insurance Code, and |
|
amended to read as follows: |
|
Sec. 822.256 [861.701]. REVOCATION OF CERTIFICATE. (a) |
|
If, as a result of an examination under Section 801.027 [861.257], |
|
the commissioner determines that a [general] casualty company has |
|
not complied with this chapter, the commissioner shall: |
|
(1) revoke the company's certificate of authority; and |
|
(2) notify the attorney general of the revocation. |
|
(b) On receipt of notification under Subsection (a)(2), the |
|
attorney general shall request court appointment of a receiver for |
|
the [general] casualty company. Under the direction of the court, |
|
the receiver shall wind up the affairs of the company. |
|
SECTION 1.41. Section 861.702, Insurance Code, is |
|
transferred to Subchapter F, Chapter 822, Insurance Code, as added |
|
by this Act, redesignated as Section 822.257, Insurance Code, and |
|
amended to read as follows: |
|
Sec. 822.257 [861.702]. PENALTY. A [general] casualty |
|
company that engages in the business of insurance without a |
|
certificate of authority issued under Chapter 801 [violates Section
|
|
861.101] is subject to a penalty of $100 for each day the company |
|
writes new business in this state without the certificate of |
|
authority required by that chapter [section]. |
|
SECTION 1.42. Section 861.703, Insurance Code, is |
|
transferred to Subchapter F, Chapter 822, Insurance Code, as added |
|
by this Act, redesignated as Section 822.258, Insurance Code, and |
|
amended to read as follows: |
|
Sec. 822.258 [861.703]. COLLECTION OF PENALTY. (a) The |
|
attorney general or a district or county attorney under the |
|
direction of the attorney general may file an action in the name of |
|
the state to collect a penalty under this subchapter [chapter]. |
|
(b) An action filed under this section must be filed in |
|
Travis County or in the county in which the [general] casualty |
|
company's principal office is located. |
|
SECTION 1.43. Section 861.252, Insurance Code, is |
|
transferred to Subchapter F, Chapter 822, Insurance Code, as added |
|
by this Act, redesignated as Section 822.259, Insurance Code, and |
|
amended to read as follows: |
|
Sec. 822.259 [861.252]. SECURITY DEPOSIT. (a) [On
|
|
granting of the charter to a general casualty company, the company
|
|
shall deposit with the comptroller $50,000 in:
|
|
[(1) cash; or
|
|
[(2)
securities of the kind described by a provision
|
|
of Subchapter B, Chapter 424, other than Section 424.052, 424.072,
|
|
or 424.073.
|
|
[(b)] If, as a prerequisite to engaging in the business of |
|
insurance in another state, country, or province, a [general] |
|
casualty company is required to deposit securities or cash with the |
|
appropriate officer of that state, country, or province, or with |
|
the comptroller, [securities or cash in excess of the deposit made
|
|
under Subsection (a),] the company may deposit with the comptroller |
|
any authorized securities or cash sufficient to meet the |
|
requirement. The comptroller shall receive and hold the deposit |
|
exclusively for the protection of policyholders of the company. |
|
(b) [(c)] A [general] casualty company may withdraw a |
|
deposit made under Subsection (a) [(b)] if the company files with |
|
the department satisfactory evidence, as determined by the |
|
commissioner, that the company: |
|
(1) has withdrawn from business in the other state, |
|
country, or province; and |
|
(2) has no unsecured liabilities outstanding in the |
|
other state, country, or province. |
|
(c) [(d)] A [general] casualty company may change the |
|
company's securities on deposit with the comptroller by withdrawing |
|
those securities and substituting an equal amount of other |
|
securities that meet the requirements to engage in the business of |
|
insurance in the relevant state, country, or province [authorized
|
|
by Subsection (a)]. |
|
SECTION 1.44. Sections 841.002 and 841.003, Insurance Code, |
|
are amended to read as follows: |
|
Sec. 841.002. APPLICABILITY OF CHAPTER AND OTHER LAW. |
|
Except as otherwise expressly provided by this code, each insurance |
|
company incorporated or engaging in business in this state as a life |
|
insurance company, an accident insurance company, a life and |
|
accident insurance company, a health and accident insurance |
|
company, or a life, health, and accident insurance company is |
|
subject to: |
|
(1) this chapter and Chapter 801; |
|
(2) Chapter 3; |
|
(3) Chapters 425 and 492; |
|
(4) Title 7; |
|
(5) Sections 1202.051, 1204.151, 1204.153, and |
|
1204.154; |
|
(6) Subchapter A, Chapter 1202, Subchapters A and F, |
|
Chapter 1204, Subchapter A, Chapter 1273, Subchapters A, B, and D, |
|
Chapter 1355, and Subchapter A, Chapter 1366; |
|
(7) Subchapter A, Chapter 1507; |
|
(8) Chapters 1203, 1210, 1251-1254, 1301, 1351, 1354, |
|
1359, 1364, 1368, 1505, 1506, 1651, 1652, and 1701; and |
|
(9) Chapter 177, Local Government Code. |
|
Sec. 841.003. APPLICABILITY OF LAW GOVERNING CORPORATIONS. |
|
An insurance company operating under this chapter is subject to the |
|
Texas Business Organizations Code [Corporation Act, the Texas
|
|
Miscellaneous Corporation Laws Act (Article 1302-1.01 et seq.,
|
|
Vernon's Texas Civil Statutes),] and any other law of this state |
|
that governs corporations in general to the extent those laws are |
|
not inconsistent with this chapter or another law described by |
|
Section 841.002. |
|
SECTION 1.45. Section 841.104, Insurance Code, is |
|
transferred to Subchapter A, Chapter 841, Insurance Code, and |
|
redesignated as Section 841.005, Insurance Code, to read as |
|
follows: |
|
Sec. 841.005 [841.104]. TAX PAYMENT REQUIRED FOR ISSUANCE |
|
OF CERTAIN CERTIFICATES OF AUTHORITY. (a) This section applies to |
|
a life insurance company that: |
|
(1) has previously held a certificate of authority to |
|
engage in the business of life insurance in this state; |
|
(2) ceased to write new business in this state under |
|
that certificate of authority; and |
|
(3) after ceasing to write new business, continued to |
|
collect from residents of this state renewal or other premiums on |
|
policies written under that certificate of authority. |
|
(b) A life insurance company to which this section applies |
|
may not obtain a new certificate of authority to engage in the |
|
business of life insurance in this state until the company: |
|
(1) files with the department under oath a report that |
|
discloses the gross amount of renewal or other premiums received |
|
each calendar year from residents of this state after the period |
|
covered by the company's last tax report of gross premium receipts |
|
filed under this code; and |
|
(2) pays to the state occupation taxes on those |
|
premiums. |
|
(c) The life insurance company shall pay the occupation tax |
|
for each year of nonpayment. The company shall pay the tax for each |
|
year at the same rate for that year as a company engaged in the |
|
business of life insurance in this state during that year. |
|
(d) The life insurance company shall remit the penalties for |
|
failure to pay the taxes and file required reports when the company |
|
pays the taxes and receives a certificate of authority. |
|
SECTION 1.46. Section 841.201, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 841.201. FORM OF REQUIRED CAPITAL AND SURPLUS. |
|
Notwithstanding any other provision of this code, [after a charter
|
|
is granted under this chapter,] the domestic insurance company: |
|
(1) shall maintain the company's minimum capital at |
|
all times in a form described by Chapter 801 [Section 841.054(c)]; |
|
and |
|
(2) may invest the company's surplus as provided by |
|
this code. |
|
SECTION 1.47. Sections 841.256 and 841.257, Insurance Code, |
|
are amended to read as follows: |
|
Sec. 841.256. BUSINESS IN SEPARATE DEPARTMENTS OF DOMESTIC |
|
INSURANCE COMPANY. A domestic insurance company may not transact |
|
more than one of the following kinds of insurance business |
|
[described by Section 841.051(a)] unless the company establishes |
|
separate departments to transact each kind of business: |
|
(1) life insurance; |
|
(2) accident insurance; and |
|
(3) health insurance. |
|
Sec. 841.257. KINDS OF BUSINESS LIMITED. An insurance |
|
company authorized to engage in the business of insurance under |
|
Chapter 801 and operating under this chapter [or in accordance with
|
|
Section 982.051] may not accept a risk or write an insurance policy |
|
in this state or any other state or country other than: |
|
(1) a life, accident, or health insurance policy; |
|
(2) reinsurance under Sections 492.051(b) and (c) or |
|
Chapter 493 by a life insurance company authorized to engage in the |
|
business of insurance in this state; or |
|
(3) reinsurance under Chapter 494 by a domestic |
|
insurance company. |
|
SECTION 1.48. Section 882.001, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 882.001. APPLICABILITY OF THIS CHAPTER AND OTHER LAW. |
|
Except to the extent of any conflict with this chapter, a law |
|
governing a company organized under Chapter 801 and operating under |
|
Chapter 841 applies to a mutual life insurance company operating |
|
[organized] under this chapter. |
|
SECTION 1.49. Section 883.001(1), Insurance Code, is |
|
amended to read as follows: |
|
(1) "Domestic mutual insurance company" means a mutual |
|
insurance company organized under Chapter 801 and operating under |
|
this chapter. |
|
SECTION 1.50. Section 883.163, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 883.163. IMMEDIATE NOTIFICATION WHEN ASSETS ARE |
|
INSUFFICIENT; EXAMINATION. The president and the secretary of a |
|
mutual insurance company operating under this chapter [the law
|
|
providing for the incorporation of mutual fire, lightning, hail,
|
|
and storm insurance companies] shall immediately notify the |
|
commissioner any time the admitted assets of the company are less |
|
than the largest single risk for which the company is liable. The |
|
commissioner may make an examination into the affairs of the |
|
company as the commissioner considers best. |
|
SECTION 1.51. Section 982.253(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) If the commissioner determines from a statement filed |
|
under Chapter 802 [Section 982.252] or any report that an alien |
|
insurance company's trusteed surplus is less than the greater of |
|
the minimum capital required of, or the minimum surplus required to |
|
be maintained by, a domestic insurance company authorized to engage |
|
in the same kinds of insurance, the commissioner shall: |
|
(1) determine the amount of the impairment; and |
|
(2) order the company, through its United States |
|
manager or attorney, to eliminate the impairment within the period |
|
designated by the commissioner. |
|
ARTICLE 2. CONFORMING AMENDMENTS |
|
SECTION 2.01. Section 34.004, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 34.004. IMMUNITY FOR USE OF ANNUAL OR QUARTERLY |
|
STATEMENT INFORMATION. (a) A person is not liable in a civil |
|
action, including an action for libel or slander, for collecting, |
|
reviewing, analyzing, disseminating, or reporting information |
|
collected from annual or quarterly statements filed under Chapter |
|
802 if the person is: |
|
(1) the department, the commissioner, or an employee |
|
of the department; |
|
(2) a member or employee of or delegate to the National |
|
Association of Insurance Commissioners or an authorized committee, |
|
subcommittee, or task force of that association; or |
|
(3) another person who is responsible for collecting, |
|
reviewing, analyzing, and disseminating information from filed |
|
annual statement convention blanks. |
|
(b) Subsection (a) does not apply to a person who acts with |
|
malice. |
|
SECTION 2.02. Section 38.003(b), Insurance Code, is amended |
|
to read as follows: |
|
(b) For purposes of this section, "insurer" means a |
|
reciprocal or interinsurance exchange, mutual insurance company, |
|
capital stock company, county mutual insurance company, Lloyd's |
|
plan, life, accident, or health or casualty insurance company, |
|
health maintenance organization, mutual life insurance company, |
|
mutual insurance company other than life, mutual, or natural |
|
premium life insurance company, [general] casualty company, |
|
fraternal benefit society, group hospital service company, or other |
|
legal entity engaged in the business of insurance in this |
|
state. The term includes an affiliate as described by Section |
|
823.003(a) if that affiliate is authorized to write and is writing |
|
insurance in this state. |
|
SECTION 2.03. Section 222.001(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) This chapter applies to any insurer, including a group |
|
hospital service corporation, any health maintenance organization, |
|
and any managed care organization that receives gross premiums or |
|
revenues subject to taxation under Section 222.002, including |
|
companies operating under Subchapter F, Chapter 822, or Chapter |
|
841, 842, 843, [861,] 881, 882, 883, 884, 941, 942, 982, or 984, |
|
Insurance Code, Chapter 533, Government Code, or Title XIX of the |
|
federal Social Security Act. |
|
SECTION 2.04. Section 401.001(4), Insurance Code, is |
|
amended to read as follows: |
|
(4) "Insurer" means an insurer authorized to engage in |
|
business in this state, including: |
|
(A) a life, health, or accident insurance |
|
company; |
|
(B) a fire and marine insurance company; |
|
(C) a [general] casualty company; |
|
(D) a title insurance company; |
|
(E) a fraternal benefit society; |
|
(F) a mutual life insurance company; |
|
(G) a local mutual aid association; |
|
(H) a statewide mutual assessment company; |
|
(I) a mutual insurance company other than a |
|
mutual life insurance company; |
|
(J) a farm mutual insurance company; |
|
(K) a county mutual insurance company; |
|
(L) a Lloyd's plan; |
|
(M) a reciprocal or interinsurance exchange; |
|
(N) a group hospital service corporation; |
|
(O) a stipulated premium company; and |
|
(P) a nonprofit legal services corporation. |
|
SECTION 2.05. Section 404.004, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 404.004. CONSTRUCTION WITH LAW RELATING TO CAPITAL AND |
|
SURPLUS. The commissioner's authority under Section 404.003 to |
|
require an increase in an insurer's capital and surplus by |
|
contribution, and any capital and surplus requirements imposed by |
|
the commissioner under that section, prevail over: |
|
(1) the capital and surplus requirements of: |
|
(A) Sections 801.023, 801.024, 801.026, 822.201, |
|
822.202 [822.054, 822.201-822.203], 822.205, 822.212 |
|
[822.210-822.212, 841.054], 841.201, [841.204, 841.205, 841.207,] |
|
884.206, 884.308, and 884.309; and |
|
(B) Subchapter G, Chapter 841; |
|
(2) any other provision of this code or other law |
|
establishing capital and surplus requirements for insurers; and |
|
(3) any rule adopted under a law described by |
|
Subdivision (1) or (2). |
|
SECTION 2.06. Section 404.053(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) The commissioner shall order an insurer to remedy an |
|
impairment of the insurer's surplus, aggregate surplus, or |
|
aggregate of guaranty fund and surplus, as applicable, by bringing |
|
the surplus to an acceptable level specified by the commissioner, |
|
or to cease engaging in business in this state, if the commissioner |
|
determines that: |
|
(1) the surplus required by Section 801.023 [822.054], |
|
822.202, [822.203,] 822.205, [822.210, 822.211,] or 822.212 of a |
|
stock insurance company engaged in the kind of insurance business |
|
described by the company's certificate of authority: |
|
(A) is impaired by more than 50 percent; or |
|
(B) is less than the minimum level of surplus |
|
required by risk-based capital and surplus rules adopted by the |
|
commissioner; or |
|
(2) the required aggregate of guaranty fund and |
|
surplus of a Lloyd's plan, or the required aggregate surplus of a |
|
reciprocal or interinsurance exchange or of a mutual company, other |
|
than a life insurance company, engaged in the kind of insurance |
|
business described by the insurer's certificate of authority: |
|
(A) is impaired by more than 25 percent; or |
|
(B) is less than the minimum level of surplus |
|
required by risk-based capital and surplus rules adopted by the |
|
commissioner. |
|
SECTION 2.07. Section 424.001(2), Insurance Code, is |
|
amended to read as follows: |
|
(2) "Minimum capital and surplus" means the minimum |
|
amount of capital stock and minimum amount of surplus required of an |
|
insurer under Section 801.023 [822.054 or 822.210]. |
|
SECTION 2.08. Section 424.056(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) Each insurer's board of directors, or, if the insurer |
|
does not have a board of directors, the corresponding authority |
|
designated by the insurer's charter, bylaws, or plan of operation, |
|
shall adopt a written investment plan consistent with the |
|
requirements of: |
|
(1) this chapter; |
|
(2) Sections 822.255 [822.204, 822.209, 861.258,] and |
|
862.002; and |
|
(3) other statutes governing investments by the |
|
insurer. |
|
SECTION 2.09. Section 424.058, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 424.058. AUTHORIZED INVESTMENTS: FORM OF MINIMUM |
|
CAPITAL AND SURPLUS. An insurer may invest the insurer's funds in |
|
excess of minimum capital and surplus in any manner authorized by |
|
Subchapter A-1, Chapter 801, [Section 822.204] for investment of |
|
the insurer's minimum capital and surplus. |
|
SECTION 2.10. Section 443.003, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 443.003. COVERED PERSONS. The provisions of this |
|
chapter apply to all: |
|
(1) insurers who are doing or have done an insurance |
|
business in this state and against whom claims arising from that |
|
business may exist now or in the future and to all persons subject |
|
to examination by the commissioner; |
|
(2) insurers who purport to do an insurance business |
|
in this state; |
|
(3) insurers who have insureds resident in this state; |
|
(4) other persons organized or doing insurance |
|
business, or in the process of organizing with the intent to do |
|
insurance business in this state; |
|
(5) nonprofit health corporations and all fraternal |
|
benefit societies subject to Chapters 844 and 885, respectively; |
|
(6) title insurance companies subject to Title 11; |
|
(7) health maintenance organizations subject to |
|
Chapter 843; and |
|
(8) surety and trust companies subject to Chapter 7, |
|
[general] casualty companies subject to Subchapter F, Chapter 822 |
|
[861], statewide mutual assessment companies subject to Chapter |
|
881, mutual insurance companies subject to Chapter 882 or 883, |
|
local mutual aid associations subject to Chapter 886, burial |
|
associations subject to Chapter 888, farm mutual insurance |
|
companies subject to Chapter 911, county mutual insurance companies |
|
subject to Chapter 912, Lloyd's plans subject to Chapter 941, |
|
reciprocal or interinsurance exchanges subject to Chapter 942, and |
|
fidelity, guaranty, and surety companies. |
|
SECTION 2.11. Section 443.004(a)(13), Insurance Code, is |
|
amended to read as follows: |
|
(13) "Insolvency" or "insolvent" means an insurer: |
|
(A) is unable to pay its obligations when they |
|
are due; |
|
(B) does not have admitted assets at least equal |
|
to all its liabilities; or |
|
(C) has a total adjusted capital that is less |
|
than that required under: |
|
(i) Chapter 801 [822], 841, or 843, as |
|
applicable; or |
|
(ii) applicable rules or guidelines adopted |
|
by the commissioner under Section 801.024 [822.210, 841.205,] or |
|
843.404. |
|
SECTION 2.12. Section 464.052(b), Insurance Code, is |
|
amended to read as follows: |
|
(b) The commissioner may identify collected penalties to be |
|
deposited into the fund account from: |
|
(1) administrative penalties assessed by the |
|
commissioner for violations of Chapter 101 or penalties under |
|
Section 822.257 [861.702], including amounts collected through |
|
state warrant holds; |
|
(2) civil penalties assessed under Chapter 101 when |
|
the commissioner is the party requesting penalties; |
|
(3) administrative penalties assessed by the |
|
commissioner against a person holding a certificate of authority, |
|
license, registration, or other authorization to engage in the |
|
business of insurance that is issued or recognized by the |
|
commissioner for engaging in conduct outside the scope of the |
|
person's certificate, license, registration, or authorization; |
|
(4) administrative penalties assessed by the |
|
commissioner against a person holding a certificate of authority, |
|
license, registration, or authorization issued or recognized by the |
|
commissioner for using unapproved forms, rates, or advertisements |
|
if the forms, rates, or advertisements are required to be approved |
|
by the commissioner before being used in this state; and |
|
(5) forfeitures of bonds issued under Section 101.353 |
|
or 101.354. |
|
SECTION 2.13. Section 541.082(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) In this section, "insurer" includes: |
|
(1) a life insurance company; |
|
(2) a health insurance company; |
|
(3) an accident insurance company; |
|
(4) a [general] casualty company; |
|
(5) a mutual life insurance company or other mutual |
|
insurance company; |
|
(6) a mutual or natural premium life insurance |
|
company; |
|
(7) a Lloyd's plan; |
|
(8) a county mutual insurance company; |
|
(9) a farm mutual insurance company; |
|
(10) a reciprocal or interinsurance exchange; |
|
(11) a fraternal benefit society; |
|
(12) a local mutual aid association; |
|
(13) a health maintenance organization; |
|
(14) a group hospital service corporation; or |
|
(15) a multiple employer welfare arrangement that |
|
holds a certificate of coverage under Chapter 846. |
|
SECTION 2.14. Section 544.101(1), Insurance Code, is |
|
amended to read as follows: |
|
(1) "Health benefit plan issuer" means an insurance |
|
company, association, organization, group hospital service |
|
corporation, or health maintenance organization that delivers or |
|
issues for delivery an individual, group, blanket, or franchise |
|
insurance policy or insurance agreement, a group hospital service |
|
contract, or an evidence of coverage that provides health insurance |
|
or health care benefits. The term includes: |
|
(A) a life, health, and accident insurance |
|
company operating under Chapter 841 or 982; |
|
(B) a [general] casualty insurance company |
|
operating under Subchapter F, Chapter 822 [861]; |
|
(C) a fraternal benefit society operating under |
|
Chapter 885; |
|
(D) a mutual life insurance company operating |
|
under Chapter 882; |
|
(E) a local mutual aid association operating |
|
under Chapter 886; |
|
(F) a statewide mutual assessment company |
|
operating under Chapter 881; |
|
(G) a mutual assessment company or mutual |
|
assessment life, health, and accident association operating under |
|
Chapter 887; |
|
(H) a mutual insurance company operating under |
|
Chapter 883 that writes coverage other than life insurance; |
|
(I) a Lloyd's plan operating under Chapter 941; |
|
(J) a reciprocal exchange operating under |
|
Chapter 942; and |
|
(K) a stipulated premium company operating under |
|
Chapter 884. |
|
SECTION 2.15. Section 803.001(1), Insurance Code, is |
|
amended to read as follows: |
|
(1) "Domestic company" means any entity licensed, |
|
chartered, or organized under this code, including: |
|
(A) a county mutual insurance company; |
|
(B) a farm mutual insurance company; |
|
(C) a fire and marine insurance company; |
|
(D) a fraternal benefit society; |
|
(E) a [general] casualty company; |
|
(F) a group hospital service corporation; |
|
(G) a health maintenance organization; |
|
(H) a life, health, and accident insurance |
|
company; |
|
(I) a Lloyd's plan; |
|
(J) a local mutual aid association; |
|
(K) a mutual life insurance company; |
|
(L) a mutual insurance company other than a |
|
mutual life insurance company; |
|
(M) a nonprofit legal services corporation; |
|
(N) a reciprocal exchange; |
|
(O) a statewide mutual assessment company; |
|
(P) a stipulated premium insurance company; |
|
(Q) a surety and trust company; and |
|
(R) a title insurance company. |
|
SECTION 2.16. Section 826.203, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 826.203. APPLICABILITY OF CERTAIN LAWS; |
|
INCORPORATION. A mutual holding company that results from the |
|
reorganization of a domestic mutual insurance company operating |
|
[organized] under Chapter 883 must be organized under Chapter 801 |
|
[Sections 883.051, 883.052, 883.054, and 883.056]. The articles of |
|
incorporation, and any amendments to those articles, of the mutual |
|
holding company are subject to approval of the commissioner in the |
|
same manner as those of a mutual insurance company. |
|
SECTION 2.17. Section 829.004(d), Insurance Code, is |
|
amended to read as follows: |
|
(d) A mutual holding company that results from a |
|
reorganization of an exchange must be organized under Chapter 801 |
|
[Sections 883.051, 883.052, 883.054, and 883.056]. The articles |
|
of incorporation of the mutual holding company, and any amendments |
|
to those articles, are subject to approval of the commissioner in |
|
the same manner as those of a mutual insurance company. |
|
SECTION 2.18. Sections 841.301(a) and (c), Insurance Code, |
|
are amended to read as follows: |
|
(a) A domestic insurance company may not assume liability on |
|
or indemnify one person for any risk under one or more accident, |
|
health, or hospitalization insurance policies, or a combination of |
|
those policies, in an amount that exceeds $10,000, unless the |
|
amount of the issued, outstanding, and stated capital of the |
|
company is at least equal to the minimum amount of capital required |
|
for a newly incorporated company under Section 801.023 [841.054]. |
|
(c) A domestic insurance company that is exempt under |
|
Subsection (b) shall maintain its issued, outstanding, and stated |
|
capital in an amount that is at least $100,000 and is at least: |
|
(1) the amount of capital held by the company on |
|
December 31, 1991, plus 10 percent of the difference between that |
|
amount and an amount equal to the minimum amount of capital required |
|
for a newly incorporated company under former Section 841.054, if |
|
the last date that the company writes a policy described by |
|
Subsection (a) is during 1993; |
|
(2) the amount of capital held by the company on |
|
December 31, 1991, plus 20 percent of the difference between that |
|
amount and an amount equal to the minimum amount of capital required |
|
for a newly incorporated company under former Section 841.054, if |
|
the last date that the company writes a policy described by |
|
Subsection (a) is during 1994; |
|
(3) the amount of capital held by the company on |
|
December 31, 1991, plus 30 percent of the difference between that |
|
amount and an amount equal to the minimum amount of capital required |
|
for a newly incorporated company under former Section 841.054, if |
|
the last date that the company writes a policy described by |
|
Subsection (a) is during 1995; |
|
(4) the amount of capital held by the company on |
|
December 31, 1991, plus 40 percent of the difference between that |
|
amount and an amount equal to the minimum amount of capital required |
|
for a newly incorporated company under former Section 841.054, if |
|
the last date that the company writes a policy described by |
|
Subsection (a) is during 1996; |
|
(5) the amount of capital held by the company on |
|
December 31, 1991, plus 50 percent of the difference between that |
|
amount and an amount equal to the minimum amount of capital required |
|
for a newly incorporated company under former Section 841.054, if |
|
the last date that the company writes a policy described by |
|
Subsection (a) is during 1997; |
|
(6) the amount of capital held by the company on |
|
December 31, 1991, plus 60 percent of the difference between that |
|
amount and an amount equal to the minimum amount of capital required |
|
for a newly incorporated company under former Section 841.054, if |
|
the last date that the company writes a policy described by |
|
Subsection (a) is during 1998; |
|
(7) the amount of capital held by the company on |
|
December 31, 1991, plus 70 percent of the difference between that |
|
amount and an amount equal to the minimum amount of capital required |
|
for a newly incorporated company under former Section 841.054, if |
|
the last date that the company writes a policy described by |
|
Subsection (a) is during 1999; |
|
(8) the amount of capital held by the company on |
|
December 31, 1991, plus 80 percent of the difference between that |
|
amount and an amount equal to the minimum amount of capital required |
|
for a newly incorporated company under former Section 841.054, if |
|
the last date that the company writes a policy described by |
|
Subsection (a) is during 2000; and |
|
(9) the amount of capital held by the company on |
|
December 31, 1991, plus 90 percent of the difference between that |
|
amount and an amount equal to the minimum amount of capital required |
|
for a newly incorporated company under former Section 841.054, if |
|
the last date that the company writes a policy described by |
|
Subsection (a) is during 2001. |
|
SECTION 2.19. Sections 843.155(c) and (d), Insurance Code, |
|
are amended to read as follows: |
|
(c) Sections 36.108 and 201.055 and Chapter 802 apply to the |
|
annual and quarterly reports [report] of a health maintenance |
|
organization. |
|
(d) The annual and quarterly reports [report] filed by the |
|
health maintenance organization shall be made publicly available on |
|
the department's Internet website in a user-friendly format that |
|
allows consumers to make direct comparisons of the financial and |
|
other data reported by health maintenance organizations under this |
|
section. |
|
SECTION 2.20. Section 862.002(e), Insurance Code, is |
|
amended to read as follows: |
|
(e) Section 822.255 [861.258] applies to real property |
|
acquired under Subsection (c)(1), (2), or (3). |
|
SECTION 2.21. Section 862.151, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 862.151. REDUCTION OF CAPITAL STOCK AND PAR VALUE OF |
|
SHARES. (a) If the minimum surplus of a fire, marine, or inland |
|
marine insurance company is impaired in excess of the amount |
|
permitted under Subchapter B, Chapter 404, the commissioner may |
|
allow the company to amend its charter [as provided by Sections
|
|
822.157 and 822.158] to reduce the amount of the company's capital |
|
stock and the par value of its shares in proportion to the extent of |
|
the permitted amount of impairment. |
|
(b) A company acting under Subsection (a): |
|
(1) [may not reduce the par value of its shares below
|
|
the sum computed under Section 822.055;
|
|
[(2)] may not deduct from the assets and property on |
|
hand more than $125,000; |
|
(2) [(3)] shall retain the remainder of the assets and |
|
property on hand as surplus assets; |
|
(3) [(4)] may not distribute any of the assets or |
|
property to the shareholders; and |
|
(4) [(5)] may not reduce the capital stock or surplus |
|
of the company to an amount less than the minimum capital and the |
|
minimum surplus required by Section [Sections] 822.202, [822.210,
|
|
and 822.211,] subject to Subchapter B, Chapter 404. |
|
SECTION 2.22. Section 862.152(b), Insurance Code, is |
|
amended to read as follows: |
|
(b) The company shall promptly call on its shareholders for |
|
an amount necessary to make the company's capital and surplus equal |
|
to the amount required by Section 801.023 [Sections 822.054 and
|
|
822.210], subject to Subchapter B, Chapter 404. |
|
SECTION 2.23. Section 862.153(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) If a shareholder of the insurance company who is given |
|
notice under Section 862.152 does not pay the amount called for by |
|
the company under that section, the company may: |
|
(1) require the return of the original certificate of |
|
stock held by the shareholder; and |
|
(2) issue a new certificate for a number of shares that |
|
the shareholder may be entitled to in the proportion that the value |
|
of the funds of the company, computed without inclusion of any money |
|
or other property paid by shareholders in response to the notice |
|
under Section 862.152, bears to the total amount of the original |
|
capital and the minimum surplus of the company required by Section |
|
801.023 [822.054 or 822.210], subject to Subchapter B, Chapter 404. |
|
SECTION 2.24. Section 862.154, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 862.154. CREATION AND DISPOSAL OF NEW STOCK. (a) A |
|
fire, marine, or inland marine insurance company that complies with |
|
Section 801.037 [Sections 822.155, 822.157, and 822.158] may: |
|
(1) create new stock; |
|
(2) dispose of the new stock according to applicable |
|
law; and |
|
(3) issue new certificates for the new stock. |
|
(b) The insurance company shall sell any new stock created |
|
under Subsection (a) for an amount sufficient to make up any |
|
impairment of the company's required minimum capital and to make up |
|
the surplus of the company as required by Section 801.023 [822.054
|
|
or 822.210], subject to Subchapter B, Chapter 404, but may not |
|
impair the capital of the company. |
|
SECTION 2.25. Section 882.201, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 882.201. APPLICABILITY OF SUBCHAPTER. This subchapter |
|
does not apply to a mutual life insurance company organized under |
|
this chapter that has a surplus of at least the minimum amount of |
|
capital and surplus required of a capital stock company under |
|
Sections 801.023, 801.024 [841.054, 841.204, 841.205], 841.301, |
|
and 841.302. |
|
SECTION 2.26. Section 882.301(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) A mutual life insurance company that engages in the |
|
business of insurance in this state shall maintain an unencumbered |
|
surplus of at least $100,000 that consists of cash or classes of |
|
investment authorized by Section 801.023 [as provided by Section
|
|
882.055]. |
|
SECTION 2.27. Section 882.451, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 882.451. APPLICABILITY OF CERTAIN PROVISIONS. |
|
Sections 882.452, 882.453, and 882.454 do not apply to a mutual life |
|
insurance company organized under this chapter that has a surplus |
|
of at least the minimum amount of capital and surplus required of a |
|
capital stock company under Sections 801.023, 801.024 [841.054,
|
|
841.204, 841.205], 841.301, and 841.302. |
|
SECTION 2.28. Section 882.556(c), Insurance Code, is |
|
amended to read as follows: |
|
(c) At a meeting under Subsection (a), each policyholder[:
|
|
[(1)
is entitled to the number of votes as provided by
|
|
Section 882.155; and
|
|
[(2)] may vote: |
|
(1) [(A)] in person; |
|
(2) [(B)] by written proxy; or |
|
(3) [(C)] by mailed ballot. |
|
SECTION 2.29. Section 882.701, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 882.701. APPLICABILITY OF SUBCHAPTER. This subchapter |
|
does not apply to a mutual life insurance company organized under |
|
this chapter that has a surplus of at least the minimum amount of |
|
capital and surplus required of a capital stock company under |
|
Sections 801.023, 801.024 [841.054, 841.204, 841.205], 841.301, |
|
and 841.302. |
|
SECTION 2.30. Section 884.002(c), Insurance Code, is |
|
amended to read as follows: |
|
(c) The following provisions of this code apply to a |
|
stipulated premium company: |
|
(1) Article 21.47; |
|
(2) Section 38.001; |
|
(3) Chapter 86; |
|
(4) Subchapter A, Chapter 401; |
|
(5) Sections 401.051, 401.052, 401.054-401.062, |
|
401.151, 401.152, 401.155, and 401.156; |
|
(6) Sections 403.001, 403.052, and 403.102; |
|
(7) Subchapter A, Chapter 404; |
|
(8) Section 421.001; |
|
(9) Subchapter D, Chapter 425; |
|
(10) Chapter 443; |
|
(11) Chapter 492, other than Sections 492.051(b) and |
|
(c); |
|
(12) Chapter 541; |
|
(13) Sections 801.001 and 801.002 [801.001-801.002]; |
|
(14) Sections 801.052-801.055 [801.051-801.055]; |
|
(15) Section 801.057; |
|
(16) Sections 801.101-801.102; |
|
(17) Subchapter A, Chapter 821; |
|
(18) Chapter 824; |
|
(19) Chapter 828; |
|
(20) Section 841.251; |
|
(21) Section 841.259; |
|
(22) Section 841.261; |
|
(23) Section 841.703; and |
|
(24) Chapter 4152. |
|
SECTION 2.31. Section 884.402, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 884.402. ADDITIONAL COVERAGE. A stipulated premium |
|
company that, at the time it begins to issue coverages under this |
|
subchapter, possesses the amounts of capital and unencumbered |
|
surplus equal to or greater than the corresponding amounts required |
|
for organization of a life and health company under Sections |
|
801.023, 801.024 [841.052, 841.054, 841.204, 841.205], 841.301, |
|
and 841.302 may, subject to Section 884.403: |
|
(1) issue any kind of life insurance coverage |
|
authorized by Chapter 3, 841, or 1701 or Title 7; |
|
(2) issue any kind of health or accident insurance |
|
coverage authorized by: |
|
(A) Title 7; |
|
(B) Chapter 3, 704, 841, 846, 982, 1201, 1202, |
|
1203, 1210, 1251, 1252, 1253, 1254, 1301, 1351, 1354, 1359, 1364, |
|
1368, 1501, 1504, 1505, 1506, 1552, 1575, 1576, 1579, 1581, 1625, |
|
1651, 1652, or 1701; |
|
(C) Chapter 492, other than Sections 492.051(b) |
|
and (c); |
|
(D) Subchapter B, Chapter 38, Subchapter D, |
|
Chapter 425, Subchapter A or F, Chapter 1204, Subchapter A, Chapter |
|
1273, Subchapter A, B, or D, Chapter 1355, Subchapter A, Chapter |
|
1366, Subchapter A, Chapter 1507; |
|
(E) Section 1204.151, 1204.153, 1204.154, or |
|
1451.051; or |
|
(F) Chapter 177, Local Government Code; or |
|
(3) issue life insurance coverage through policies |
|
without cash surrender values or nonforfeiture values and that |
|
exceed $10,000 on one life. |
|
SECTION 2.32. Sections 885.453(c) and (d), Insurance Code, |
|
are amended to read as follows: |
|
(c) If the fraternal benefit society is converting to a |
|
mutual life insurance company: |
|
(1) the resolution authorizing the conversion must |
|
also state the amount of the unencumbered surplus; |
|
(2) the amount and form of the unencumbered surplus |
|
must comply with Sections [882.055,] 882.301(a), 882.302, 882.304, |
|
and 882.404; and |
|
(3) the conversion must comply with Chapter 801 |
|
[Sections 882.056(a) and (b), 882.057, 882.058, 882.059, and
|
|
882.101]. |
|
(d) If the fraternal benefit society is converting to an |
|
incorporated stock company: |
|
(1) the resolution authorizing the conversion must |
|
also state: |
|
(A) the amount of the surplus, the amount of |
|
capital stock authorized, and the number of shares into which the |
|
capital stock is divided; and |
|
(B) the amount of capital stock to be immediately |
|
paid in; |
|
(2) the amounts and form of the surplus and capital |
|
must comply with Sections 801.023, 801.024 [841.054, 841.055,
|
|
841.056, 841.057, 841.204, 841.205], 841.301, and 841.302; and |
|
(3) the conversion must comply with Chapter 801 |
|
[Sections 841.058, 841.059(a)(1), 841.060, 841.061, 841.062, and
|
|
841.063]. |
|
SECTION 2.33. Section 887.003(b), Insurance Code, is |
|
amended to read as follows: |
|
(b) Except as provided by Section 887.004, this chapter |
|
applies to insurance companies and associations, whether |
|
incorporated or not: |
|
(1) that issue policies or certificates of insurance |
|
on the lives of individuals on a mutual assessment plan or that |
|
provide health and accident benefits on a mutual assessment plan or |
|
whose funds are derived from assessments on certificate holders or |
|
members; and |
|
(2) that are not governed by: |
|
(A) Subchapter F, Chapter 882; |
|
(B) Chapter 841, [861,] 882, 883, 885, 941, or |
|
942; or |
|
(C) [(B)] Chapter 5, Title 78, Revised Statutes, |
|
as provided by Section 18, Chapter 40, Acts of the 41st Legislature, |
|
1st Called Session, 1929, as amended by Section 1, Chapter 60, |
|
General Laws, Acts of the 41st Legislature, 2nd Called Session, |
|
1929. |
|
SECTION 2.34. Section 887.504, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 887.504. AMENDMENT OF CHARTER OR ARTICLES OF |
|
ASSOCIATION REQUIRED. On authorization under Section 887.503, the |
|
board of directors and officers of the association shall amend the |
|
association's charter or articles of association to comply with |
|
Chapter 801 as applicable to a stock legal reserve life insurance |
|
company [Sections 841.051, 841.052, and 841.053]. |
|
SECTION 2.35. Section 911.001(c), Insurance Code, is |
|
amended to read as follows: |
|
(c) Except to the extent of any conflict with this chapter, |
|
the following provisions apply to a farm mutual insurance company: |
|
(1) Subchapter A, Chapter 32; |
|
(2) Subchapter D, Chapter 36; |
|
(3) Sections 31.002(2), 32.021(c), 32.023, 32.041, |
|
33.002, 38.001, 81.001-81.004, 201.005, 201.055, 401.051, 401.052, |
|
401.054-401.062, 401.103-401.106, 401.151, 401.152, 401.155, |
|
401.156, 421.001, 801.052-801.055 [801.051-801.055], 801.057, |
|
801.101, 801.102, [822.204,] 841.004, 841.251, 841.252, 862.101, |
|
1806.001, 1806.101, 1806.103(b), and 1806.104-1806.107; |
|
(4) Chapter 86; |
|
(5) Subchapter A, Chapter 401; |
|
(6) Subchapter B, Chapter 404; |
|
(7) Chapter 422; |
|
(8) Subchapter B, Chapter 424, other than Section |
|
424.052, 424.072, or 424.073; |
|
(9) Chapter 441; |
|
(10) Chapter 443; |
|
(11) Chapter 462; |
|
(12) Chapter 481; |
|
(13) Chapter 541; |
|
(14) Chapter 802; |
|
(15) Subchapter A, Chapter 805; |
|
(16) Chapter 824; and |
|
(17) Article 1.09-1. |
|
SECTION 2.36. Section 911.101, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 911.101. AUTHORITY TO ENGAGE IN BUSINESS. Except to |
|
the extent of any conflict with this chapter, a farm mutual |
|
insurance company must hold a certificate of authority under |
|
Chapter 801 [Section 801.051] to engage in the business of |
|
insurance in this state under this chapter. |
|
SECTION 2.37. Section 911.308(c), Insurance Code, is |
|
amended to read as follows: |
|
(c) A company described by Subsection (b) shall invest the |
|
minimum unencumbered surplus as provided by Subchapter A-1, Chapter |
|
801 [Section 822.204]. The company may invest funds in excess of |
|
the minimum unencumbered surplus as provided by the provisions of |
|
Subchapter B, Chapter 424, other than Sections 424.052, 424.072, |
|
and 424.073. |
|
SECTION 2.38. Section 912.002(b), Insurance Code, is |
|
amended to read as follows: |
|
(b) A county mutual insurance company is subject to: |
|
(1) Sections 38.001, 401.051, 401.052, |
|
401.054-401.062, 401.151, 401.152, 401.155, 401.156, 501.159, |
|
501.202, 501.203, [822.204,] 1806.001, 1806.101, 1806.103(b), |
|
1806.104-1806.107, 2002.002, and 2002.005; |
|
(2) Subchapter A, Chapter 86; |
|
(3) Subchapter A, Chapter 401; |
|
(4) the provisions of Subchapter B, Chapter 424, other |
|
than Sections 424.052, 424.072, and 424.073; |
|
(5) Chapters 221, 251, 252, 254, 541, and 2210; and |
|
(6) Articles 5.39 and 5.40. |
|
SECTION 2.39. Section 912.308, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 912.308. AMOUNT AND INVESTMENT OF SURPLUS. (a) A |
|
county mutual insurance company shall maintain an unencumbered |
|
surplus which may be invested only as provided by Subchapter A-1, |
|
Chapter 801 [in items listed in Section 822.204]. The unencumbered |
|
surplus must be at least: |
|
(1) $25,000, if the company is organized to write |
|
insurance coverage locally in only the county of its domicile; |
|
(2) $50,000, if the company is organized to write |
|
insurance coverage in only the county of its domicile and any |
|
adjacent county; or |
|
(3) an amount equal to the aggregate of the minimum |
|
capital and minimum surplus required under Sections 801.023 and |
|
[822.054,] 822.202[, 822.210, and 822.211,] for a fire insurance |
|
company if the county mutual insurance company is organized to |
|
write insurance coverage statewide. |
|
(b) Except as provided by Section 912.056, a county mutual |
|
insurance company is subject to Subchapter B, Chapter 404, and |
|
Section [Sections 822.203, 822.210, and] 822.212. |
|
SECTION 2.40. Sections 941.003(b) and (d), Insurance Code, |
|
are amended to read as follows: |
|
(b) A Lloyd's plan is subject to: |
|
(1) Subchapter A, Chapter 5, Chapter 254, Subchapters |
|
A and B, Chapter 1806, and Subtitle C, Title 10; |
|
(2) Articles 5.35, 5.39, and 5.40; |
|
(3) Article 5.13-2, as provided by that article, |
|
Chapter 2251, as provided by that chapter, and Chapter 2301, as |
|
provided by that chapter; |
|
(4) Chapters 251, 252, 402, 541, and 2253; |
|
(5) Subchapter A, Chapter 401; |
|
(6) Subchapter B, Chapter 404; |
|
(7) Subchapter C, Chapter 1806; and |
|
(8) Sections 38.001, 501.159, [822.203,] 822.205, |
|
[822.210,] 822.212, 2002.005, 2002.051, and 2002.052. |
|
(d) Underwriters and their attorney in fact are subject to |
|
Sections 801.021, 801.031, 801.032 [822.051, 822.057, 822.058,
|
|
822.059, 822.060], and 822.201, except that: |
|
(1) the articles of agreement executed by the |
|
underwriters are instead of the articles of incorporation; and |
|
(2) the aggregate of the guaranty fund and |
|
unencumbered surplus of the Lloyd's plan constitutes capital |
|
structure for purposes of Section 801.032 [822.060]. |
|
SECTION 2.41. Section 941.103, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 941.103. ISSUANCE OF CERTIFICATE OF AUTHORITY. On |
|
determination by the department that the underwriters and attorney |
|
in fact have complied with the law, the department shall, in |
|
accordance with Sections 801.001, 801.002, 801.052-801.055 |
|
[801.051-801.055], 801.057, and 801.101, issue a certificate of |
|
authority to the attorney in fact. |
|
SECTION 2.42. Section 941.204(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) The minimum guaranty fund and surplus required of a |
|
Lloyd's plan under Sections 801.023 [822.054], 822.202, [822.210,
|
|
822.211,] and 941.201 must be: |
|
(1) in cash; or |
|
(2) invested as provided by the[:
|
|
[(A) Section 822.204; or
|
|
[(B) any other] law governing the investment of |
|
the capital stock and minimum surplus of a capital stock insurance |
|
company engaged in the same kind of business. |
|
SECTION 2.43. Section 941.353, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 941.353. REQUIREMENTS OF CONVERSION PLAN. The |
|
conversion plan must provide that a capital stock insurance company |
|
will be formed in accordance with Chapter 822, except that: |
|
(1) the company's required minimum capital and surplus |
|
must equal the required minimum guaranty fund and surplus of the |
|
Lloyd's plan; |
|
(2) the company's assets may be in cash or in the form |
|
of an investment lawfully held by the Lloyd's plan; and |
|
(3) an original examination [under Section
|
|
822.058(b)] is not required unless directed by the commissioner. |
|
SECTION 2.44. Sections 942.003(b) and (e), Insurance Code, |
|
are amended to read as follows: |
|
(b) An exchange is subject to: |
|
(1) Subchapter A, Chapter 5, Chapter 254, Subchapters |
|
A and B, Chapter 1806, and Subtitle C, Title 10; |
|
(2) Articles 5.35, 5.39, and 5.40; |
|
(3) Article 5.13-2, as provided by that article, |
|
Chapter 2251, as provided by that chapter, and Chapter 2301, as |
|
provided by that chapter; |
|
(4) Chapters 402, 541, and 2253; |
|
(5) Subchapter A, Chapter 401, and Sections 401.051, |
|
401.052, 401.054-401.062 [401.054, 401.055, 401.056, 401.057,
|
|
401.058, 401.059, 401.060, 401.061, 401.062], 401.151, 401.152, |
|
401.155, and 401.156; |
|
(6) Subchapter B, Chapter 404; |
|
(7) Subchapter C, Chapter 1806; and |
|
(8) Sections 38.001, 501.159, [822.203,] 822.205, |
|
[822.210,] 822.212, 822.254 [861.254(a)-(f), 861.255], 862.001(b), |
|
862.003, 2002.002, 2002.005, 2002.051, and 2002.052. |
|
(e) Subscribers and their attorney in fact are subject to |
|
Sections 801.021, 801.031, 801.032 [822.051, 822.057-822.060], and |
|
822.201, except that: |
|
(1) the declaration of the subscribers prescribed by |
|
Section 942.053 replaces the articles of incorporation; and |
|
(2) the unencumbered surplus of the exchange |
|
constitutes capital structure for purposes of Section 801.032 |
|
[822.060]. |
|
SECTION 2.45. Section 942.052(d), Insurance Code, is |
|
amended to read as follows: |
|
(d) Instead of a bond, an attorney in fact may deposit with |
|
the appropriate official of the exchange's state of domicile cash |
|
or securities of the kind in which a [general] casualty company is |
|
authorized to invest its funds. The deposit must be made in the |
|
same amount, and must be conditioned, approved, and payable in the |
|
same manner, as a bond required under this section. |
|
SECTION 2.46. Section 942.053(b), Insurance Code, is |
|
amended to read as follows: |
|
(b) The declaration must include: |
|
(1) the name of the proposed exchange; |
|
(2) the kinds of insurance to be provided under the |
|
reciprocal or interinsurance contract; |
|
(3) a copy of the form of the power of attorney or |
|
other authorization of the attorney in fact under which the |
|
insurance is to be provided; |
|
(4) the location of each office from which the |
|
reciprocal or interinsurance contracts are to be issued; and |
|
(5) any other information prescribed by the |
|
department[, including an affidavit comparable to the affidavit
|
|
prescribed by Section 822.057(a)(3)]. |
|
SECTION 2.47. Section 942.101(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) An attorney in fact must hold a certificate of authority |
|
issued by the department under Sections 801.001, 801.002, |
|
801.052-801.055 [801.051-801.055], 801.057, 801.101, and 801.102. |
|
A certificate of authority obtained in accordance with this section |
|
authorizes the attorney in fact named in the certificate to |
|
exercise all powers and perform all duties of an attorney in fact. |
|
SECTION 2.48. Section 942.155(c), Insurance Code, is |
|
amended to read as follows: |
|
(c) An exchange shall maintain the required assets as to: |
|
(1) minimum surplus requirements[, as provided by
|
|
Section 822.204]; and |
|
(2) other funds, as provided by the provisions of |
|
Subchapter B, Chapter 424, other than Sections 424.052, 424.072, |
|
and 424.073. |
|
SECTION 2.49. Section 961.002(b), Insurance Code, is |
|
amended to read as follows: |
|
(b) The following provisions of this code apply to a |
|
nonprofit legal services corporation in the same manner that they |
|
apply to an insurer or a person engaged in the business of |
|
insurance, to the extent the provisions do not conflict with this |
|
chapter: |
|
(1) Articles 1.09-1 and 21.47; |
|
(2) Sections 31.002, 31.004, 31.007, 31.021, 31.022, |
|
31.023, 31.026, 31.027, 32.021, 32.022(a), 32.023, 33.002, 33.006, |
|
36.108, 38.001, 81.004, 201.005, 201.055, 401.051, 401.052, |
|
401.054-401.062, 401.103-401.106, 401.151, 401.152, 401.155, |
|
401.156, 801.001, 801.002, 801.052-801.055 [801.051-801.055], |
|
801.057, 801.101, 801.102, 841.251, and 841.252; |
|
(3) Subchapter B, Chapter 31; |
|
(4) Subchapters A and C, Chapter 32; |
|
(5) Subchapter D, Chapter 36; |
|
(6) Subchapter A, Chapter 401; |
|
(7) Subchapter A, Chapter 542; |
|
(8) Subchapter A, Chapter 805; and |
|
(9) Chapters 86, 402, 441, 443, 481, 541, 802, and 824. |
|
SECTION 2.50. Section 962.004, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 962.004. APPLICABILITY OF OTHER LAW. An insurer |
|
operating under this chapter is subject to the following |
|
provisions, if not in conflict with this chapter: |
|
(1) the other chapters of this code, including: |
|
(A) Chapter 221; |
|
(B) Chapter 281, other than any minimum capital |
|
and surplus requirements specified in that chapter; |
|
(C) Chapter 822, including Sections [822.203,] |
|
822.205[, 822.210,] and 822.212; and |
|
(D) [Chapter 861; and
|
|
[(E)] Chapter 402; and |
|
(2) Section 171.0525, Tax Code. |
|
SECTION 2.51. Section 962.054, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 962.054. INSURERS NOT MEETING CERTAIN REQUIREMENTS. |
|
To write the insurance coverages authorized by Section 962.101, a |
|
domestic or foreign insurer that does not meet the requirements of |
|
Sections 962.051 and 962.052 must comply with Chapter [Chapters] |
|
822 [and 861]. |
|
SECTION 2.52. Section 962.055, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 962.055. CAPITAL AND SURPLUS REQUIREMENTS. A domestic |
|
or foreign insurer operating under this chapter shall maintain the |
|
minimum capital and surplus required by Section [Sections] 801.023 |
|
[822.054, 822.210, and 822.211]. |
|
SECTION 2.53. Section 982.251, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 982.251. TRUSTEED SURPLUS OF ALIEN INSURANCE COMPANY. |
|
The total value of an alien insurance company's general state |
|
deposits and trusteed assets less the total net amount of all the |
|
company's liabilities and reserves in the United States[, as
|
|
determined in accordance with Section 982.252,] is the company's |
|
trusteed surplus in the United States. |
|
SECTION 2.54. Section 1102.001(2), Insurance Code, is |
|
amended to read as follows: |
|
(2) "Insurer" means any insurer, including a: |
|
(A) life, accident, health, or casualty |
|
insurance company; |
|
(B) mutual life insurance company; |
|
(C) mutual insurance company other than a life |
|
insurance company; |
|
(D) mutual or natural premium life insurance |
|
company; |
|
(E) [general] casualty company; |
|
(F) Lloyd's plan or a reciprocal or |
|
interinsurance exchange; |
|
(G) fraternal benefit society; or |
|
(H) group hospital service corporation. |
|
SECTION 2.55. Section 1132.001(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) In this section, "insurer" means: |
|
(1) a life insurance company; |
|
(2) an accident insurance company; |
|
(3) a [general] casualty [insurance] company; |
|
(4) a mutual life insurance company; |
|
(5) a mutual or natural premium life insurance |
|
company; |
|
(6) a fraternal benefit society; or |
|
(7) a local mutual aid association. |
|
SECTION 2.56. Section 1152.107(b), Insurance Code, is |
|
amended to read as follows: |
|
(b) The company shall file the statement: |
|
(1) on a form prescribed or approved by the |
|
department; and |
|
(2) simultaneously with the annual statement required |
|
by Chapter 802 [Sections 841.255 and 882.003]. |
|
SECTION 2.57. Section 1201.003(b), Insurance Code, is |
|
amended to read as follows: |
|
(b) Except as otherwise provided by this chapter, this |
|
chapter applies only to an individual accident and health insurance |
|
policy delivered or issued for delivery by: |
|
(1) a life, health, and accident insurance company; |
|
(2) a mutual insurance company, including: |
|
(A) a mutual life insurance company; and |
|
(B) a mutual assessment life insurance company; |
|
(3) a local mutual aid association; |
|
(4) a mutual or natural premium life or casualty |
|
insurance company; |
|
(5) a [general] casualty company; |
|
(6) a Lloyd's plan; |
|
(7) a reciprocal or interinsurance exchange; |
|
(8) a nonprofit hospital, medical, or dental service |
|
corporation, including a corporation operating under Chapter 842; |
|
or |
|
(9) another insurer required by law to be authorized |
|
by the department. |
|
SECTION 2.58. Section 1204.051(6), Insurance Code, is |
|
amended to read as follows: |
|
(6) "Insurer" means an insurance company, |
|
association, or organization authorized to engage in business in |
|
this state under Subchapter F, Chapter 822, or Chapter 841, [861,] |
|
881, 882, 883, 884, 885, 886, 887, 888, 941, 942, or 982. |
|
SECTION 2.59. Section 1254.001(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) In this section, "insurer" means: |
|
(1) a life insurance company; |
|
(2) a health insurance company; |
|
(3) an accident insurance company; |
|
(4) a [general] casualty company; |
|
(5) a mutual life insurance company or other mutual |
|
insurance company; |
|
(6) a mutual or natural premium life insurance |
|
company; |
|
(7) a Lloyd's plan; |
|
(8) a reciprocal or interinsurance exchange; |
|
(9) a fraternal benefit society; |
|
(10) a local mutual aid association; or |
|
(11) a group hospital service corporation. |
|
SECTION 2.60. Section 1273.001(3), Insurance Code, is |
|
amended to read as follows: |
|
(3) "Insurer" means an insurance company, |
|
association, or organization authorized to engage in business in |
|
this state under Subchapter F, Chapter 822, or Chapter 841, 842, |
|
[861,] 881, 882, 883, 884, 885, 886, 887, 888, 941, 942, or 982. |
|
SECTION 2.61. Section 1451.102, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 1451.102. APPLICABILITY OF SUBCHAPTER. Except as |
|
provided by this subchapter, this subchapter applies only to an |
|
individual, group, blanket, or franchise insurance policy, |
|
insurance agreement, or group hospital service contract that |
|
provides health benefits, accident benefits, or health and accident |
|
benefits for medical or surgical expenses incurred as a result of an |
|
accident or sickness and that is delivered, issued for delivery, or |
|
renewed in this state by any incorporated or unincorporated |
|
insurance company, association, or organization, including: |
|
(1) a fraternal benefit society operating under |
|
Chapter 885; |
|
(2) a [general] casualty company operating under |
|
Subchapter F, Chapter 822 [861]; |
|
(3) a life, health, and accident insurance company |
|
operating under Chapter 841 or 982; |
|
(4) a Lloyd's plan operating under Chapter 941; |
|
(5) a local mutual aid association operating under |
|
Chapter 886; |
|
(6) a mutual insurance company writing insurance other |
|
than life insurance operating under Chapter 883; |
|
(7) a mutual life insurance company operating under |
|
Chapter 882; |
|
(8) a reciprocal exchange operating under Chapter 942; |
|
(9) a statewide mutual assessment company, mutual |
|
assessment company, or mutual assessment life, health, and accident |
|
association operating under Chapter 881 or 887; and |
|
(10) a stipulated premium company operating under |
|
Chapter 884. |
|
SECTION 2.62. Section 1651.001(b), Insurance Code, is |
|
amended to read as follows: |
|
(b) This chapter applies only to a policy, certificate, or |
|
evidence of coverage that is issued by: |
|
(1) a capital stock insurance company, including a |
|
life, health and accident, or [general] casualty [insurance] |
|
company; |
|
(2) a mutual life insurance company; |
|
(3) a mutual assessment life insurance company, |
|
including a statewide mutual assessment corporation, local mutual |
|
aid association, and burial association; |
|
(4) a mutual or mutual assessment association, |
|
including an association subject to Section 887.101; |
|
(5) a mutual insurance company other than a life |
|
insurance company; |
|
(6) a mutual or natural premium life or casualty |
|
insurance company; |
|
(7) a fraternal benefit society; |
|
(8) a Lloyd's plan insurer; |
|
(9) a reciprocal or interinsurance exchange; |
|
(10) a nonprofit medical, hospital, or dental service |
|
corporation, including a company subject to Chapter 842; |
|
(11) a stipulated premium company; |
|
(12) a health maintenance organization under Chapter |
|
843; or |
|
(13) another insurer required to be licensed by the |
|
department. |
|
SECTION 2.63. Section 1652.003, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 1652.003. APPLICABILITY OF CHAPTER. This chapter |
|
applies to an individual or group Medicare supplement benefit plan |
|
delivered or issued for delivery in this state and, regardless of |
|
the place where the plan was delivered or issued for delivery, a |
|
certificate that was issued under a group Medicare supplement |
|
benefit plan and delivered or issued for delivery in this state, if |
|
the plan or certificate is issued by: |
|
(1) a capital stock insurance company, including a |
|
life, health and accident, and [general] casualty [insurance] |
|
company; |
|
(2) a mutual life insurance company; |
|
(3) a mutual assessment life insurance company, |
|
including a statewide mutual assessment company, local mutual aid |
|
association, and burial association; |
|
(4) a mutual or mutual assessment association of any |
|
kind, including an association subject to Section 887.102; |
|
(5) a mutual insurance company other than a life |
|
insurance company; |
|
(6) a mutual or natural premium life or casualty |
|
insurance company; |
|
(7) a fraternal benefit society; |
|
(8) a Lloyd's plan; |
|
(9) a reciprocal or interinsurance exchange; |
|
(10) a nonprofit hospital, medical, or dental service |
|
corporation, including a corporation operating under Chapter 842; |
|
(11) a stipulated premium company; |
|
(12) another insurer that by law is required to be |
|
authorized by the department; or |
|
(13) a health maintenance organization operating |
|
under Chapter 843, to the extent required by federal law. |
|
SECTION 2.64. Section 1701.003(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) Except as provided by Subsection (b), this chapter |
|
applies to any insurer that uses a document described by Section |
|
1701.002 in this state, including: |
|
(1) a life, accident, health, or casualty insurance |
|
company; |
|
(2) a mutual life insurance company; |
|
(3) a mutual insurance company other than a mutual |
|
life insurance company; |
|
(4) a mutual or natural premium life insurance |
|
company; |
|
(5) a [general] casualty company; |
|
(6) a Lloyd's plan; |
|
(7) a reciprocal or interinsurance exchange; |
|
(8) a fraternal benefit society; and |
|
(9) a group hospital service corporation. |
|
SECTION 2.65. Section 1701.057(c), Insurance Code, is |
|
amended to read as follows: |
|
(c) To enable the department to determine compliance with |
|
Subsection (b), the commissioner: |
|
(1) shall require an insurer to file the rates charged |
|
by that insurer for individual accident and health insurance |
|
policies; and |
|
(2) may adopt and require an insurer to file in |
|
conjunction with the annual statement required under Chapter 802 |
|
[Section 841.255, 982.101, or 982.103] a form for reporting the |
|
insurer's experience on individual accident and health insurance |
|
policy forms issued by the insurer. |
|
SECTION 2.66. Section 2201.101, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 2201.101. ELIGIBILITY REQUIREMENTS. Except as |
|
otherwise provided by this chapter, a risk retention group that |
|
applies to be chartered in this state must: |
|
(1) be chartered and authorized to engage in the |
|
business of insurance under Chapter 822, [861,] 883, or 942; and |
|
(2) comply with all the laws, rules, and requirements, |
|
including Chapter 804, applicable to insurers authorized to engage |
|
in business under those chapters and with Subchapter D to the extent |
|
those requirements do not limit the laws, rules, or requirements of |
|
this state. |
|
SECTION 2.67. Section 2201.104(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) In addition to all other fees imposed on an insurer |
|
chartered and authorized to engage in business under Chapter 822, |
|
[861,] 883, or 942, a risk retention group chartered in this state |
|
shall pay a filing fee in an amount not to exceed $1,000 as set by |
|
rules adopted by the commissioner. |
|
SECTION 2.68. Section 2201.209(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) A risk retention group that is authorized to engage in |
|
business in this state under Subchapter C or D and that violates |
|
this chapter is subject to all sanctions and penalties applicable |
|
to an insurer that holds a certificate of authority under Chapter |
|
[Chapters] 822 [and 861], including revocation of the authority to |
|
engage in business in this state. |
|
SECTION 2.69. Sections 2551.001(a) and (c), Insurance Code, |
|
are amended to read as follows: |
|
(a) Except as provided by Subsection (c) and unless the |
|
business of title insurance or title insurance companies are |
|
expressly mentioned, the provisions of this code other than this |
|
title do not apply to: |
|
(1) a corporation incorporated or engaging in business |
|
exclusively under this title; or |
|
(2) any title insurance business engaged in by a |
|
corporation created under[:
|
|
[(A)] Subdivision 57, Article 1302, Revised |
|
Statutes, before repeal of that statute,[;
|
|
[(B) Chapter 861;] or |
|
[(C)] any other law. |
|
(c) To the extent applicable, the following provisions of |
|
this code apply to a title insurance company: |
|
(1) Articles 1.09-1 and 21.47; |
|
(2) Subsection (b), Article 1.04D; |
|
(3) Chapters 33, 82, 83, 84, 86, 102, 261, 281, 401, |
|
402, 493, 494, 541, 547, 555, 701, 801, 802, 824, 828, 1805, and |
|
2204; |
|
(4) Chapter 31, other than Section 31.005; |
|
(5) Chapter 32, other than Section 32.022(b); |
|
(6) Chapter 36, other than Sections 36.003, 36.004, |
|
and 36.101-36.105 [36.101-36.106]; |
|
(7) Subchapter A, Chapter 38; |
|
(8) Subchapters A-G, Chapter 101; |
|
(9) Chapter 982, other than Sections 982.003 and [,
|
|
982.051, 982.101, 982.105, 982.106(b),] 982.109[, and 982.113]; |
|
and |
|
(10) Sections 37.052, 39.001, 39.002, 81.001, 81.002, |
|
81.004, 201.004, 201.005, 201.051, 201.055, 403.001, 403.051, |
|
403.101, 521.002-521.004, 801.021, 801.022(a)(1), (2), and (4), |
|
801.031 except Subdivision (3), 801.032, 801.037, 801.053, |
|
805.021, 822.001, [822.051, 822.052(1), (2), and (3), 822.053,
|
|
822.057, except Subsection (a)(4), 822.058, 822.059, 822.060,
|
|
822.155, 822.157, 822.158, except Subsection (a)(5),] 841.004, |
|
841.251, 841.252(a)-(c), and 4001.103. |
|
SECTION 2.70. Section 2703.001(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) This section applies to a corporation organized under |
|
this title, a foreign corporation, and, to the extent that the |
|
corporation is engaged in the business of title insurance, a |
|
corporation organized under another law, including[:
|
|
[(1)] Subdivision 57, Article 1302, Revised Statutes, |
|
before repeal of that statute[; and
|
|
[(2) Chapter 861]. |
|
SECTION 2.71. Section 3502.152, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 3502.152. CAPITAL AND SURPLUS REQUIREMENTS. An |
|
insurer may not write mortgage guaranty insurance unless the |
|
insurer has the minimum capital and surplus required [by Chapter
|
|
861] for a [general] casualty company under Subchapter F, Chapter |
|
822. |
|
SECTION 2.72. Section 3503.201, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 3503.201. MERGER OR CONSOLIDATION OF CERTAIN |
|
COMPANIES. When two or more companies authorized to write |
|
fidelity, guaranty, and surety insurance in this state merge or |
|
consolidate and, incident to the merger or consolidation, enter |
|
into a total reinsurance contract under which the merged or ceding |
|
company is dissolved and that company's assets are acquired and |
|
liabilities are assumed by the new or surviving company, the |
|
commissioner, on finding that the contracting companies have on |
|
deposit with the comptroller two or more deposits made for the same |
|
or similar purposes under former Article 7.03, repealed by Chapter |
|
388, Acts of the 55th Legislature, Regular Session, 1957, [or] |
|
under former Section 861.252, or under Section 822.259 shall |
|
authorize the comptroller to: |
|
(1) retain for a single purpose only the deposit of the |
|
greatest amount and value; and |
|
(2) permit the new or surviving company, on proper |
|
showing that there is duplication of deposits and that the new or |
|
surviving company is the owner of those deposits, to withdraw a |
|
duplicate or excessive deposit. |
|
SECTION 2.73. Section 4001.009(a), Insurance Code, is |
|
amended to read as follows: |
|
(a) As referenced in Section 4001.003(9), a reference to an |
|
agent in the following laws includes a subagent without regard to |
|
whether a subagent is specifically mentioned: |
|
(1) Chapters 281, 402, 421-423, 441, 444, 461-463, |
|
541-556, 558, 559, 703, 705, 821, 823-825, 827, 828, 844, 963, 1108, |
|
1205-1208, 1211, 1213, 1214, 1352, 1353, 1357, 1358, 1360-1363, |
|
1369, 1453-1455, 1503, 1550, [1801,] 1803, 2151-2154, 2201-2203, |
|
2205-2213, 3501, 3502, 4007, 4102, and 4201-4203; |
|
(2) Chapter 403, excluding Section 403.002; |
|
(3) Subchapter A, Chapter 491; |
|
(4) Subchapter C, Chapter 521; |
|
(5) Subchapter A, Chapter 557; |
|
(6) Subchapter B, Chapter 805; |
|
(7) Subchapters D, E, and F, Chapter 982; |
|
(8) Subchapter D, Chapter 1103; |
|
(9) Subchapters B, C, D, and E, Chapter 1204, |
|
excluding Sections 1204.153 and 1204.154; |
|
(10) Subchapter B, Chapter 1366; |
|
(11) Subchapters B, C, and D, Chapter 1367, excluding |
|
Section 1367.053(c); |
|
(12) Subchapters A, C, D, E, F, H, and I, Chapter 1451; |
|
(13) Subchapter B, Chapter 1452; |
|
(14) Sections 551.004, 841.303, 982.001, 982.002, |
|
[982.004, 982.052, 982.102, 982.103, 982.104, 982.106,] 982.107, |
|
982.108, 982.110, 982.111, 982.112, and 1802.001; and |
|
(15) Chapter 107, Occupations Code. |
|
SECTION 2.74. Section 4007.001, Insurance Code, is amended |
|
to read as follows: |
|
Sec. 4007.001. APPLICABILITY OF CHAPTER. This chapter |
|
applies only to an insurance company authorized to engage in the |
|
business of insurance in this state under: |
|
(1) a provision of: |
|
(A) Subchapter F, Chapter 822; |
|
(B) Chapter 5, 1805, or 2171; or |
|
(C) [(B)] Subtitle B, C, D, E, F, H, or I, Title |
|
10; or |
|
(2) Chapter [861,] 862, 883, 911, 912, 941, 942, 984, |
|
or 3503. |
|
SECTION 2.75. Section 1704.160(h), Occupations Code, is |
|
amended to read as follows: |
|
(h) The certificate of authority to do business in this |
|
state issued [under Section 861.102, Insurance Code,] to an |
|
applicant that is a corporation is conclusive evidence of: |
|
(1) the sufficiency of the applicant's security; and |
|
(2) the applicant's solvency and credits. |
|
ARTICLE 3. REPEALER |
|
SECTION 3.01. The following provisions of the Insurance |
|
Code are repealed: |
|
(1) Section 36.106; |
|
(2) Section 492.053; |
|
(3) Section 801.051; |
|
(4) the heading to Subchapter D, Chapter 801; |
|
(5) the heading to Subchapter A, Chapter 802; |
|
(6) the heading to Subchapter B, Chapter 802; |
|
(7) Section 802.051; |
|
(8) Section 822.003; |
|
(9) the heading to Subchapter B, Chapter 822; |
|
(10) Section 822.055; |
|
(11) Section 822.056; |
|
(12) Section 822.058; |
|
(13) Section 822.061; |
|
(14) Subchapter C, Chapter 822; |
|
(15) the heading to Subchapter D, Chapter 822; |
|
(16) Section 822.151; |
|
(17) Section 822.152; |
|
(18) Section 822.153; |
|
(19) Section 822.154; |
|
(20) Section 822.156; |
|
(21) Section 822.157; |
|
(22) Section 822.158; |
|
(23) Section 822.203; |
|
(24) Section 822.204; |
|
(25) Section 822.210; |
|
(26) Section 822.211; |
|
(27) the heading to Subchapter B, Chapter 841; |
|
(28) Section 841.051; |
|
(29) Section 841.052; |
|
(30) Section 841.053; |
|
(31) Section 841.055; |
|
(32) Section 841.056; |
|
(33) Section 841.057; |
|
(34) Section 841.058; |
|
(35) Section 841.059; |
|
(36) Section 841.061; |
|
(37) Section 841.062; |
|
(38) Section 841.063; |
|
(39) the heading to Subchapter C, Chapter 841; |
|
(40) Section 841.101; |
|
(41) Section 841.102; |
|
(42) Section 841.103; |
|
(43) Subchapter D, Chapter 841; |
|
(44) Section 841.202; |
|
(45) Section 841.203; |
|
(46) Section 841.204; |
|
(47) Section 841.255; |
|
(48) the heading to Chapter 861; |
|
(49) Subchapter A, Chapter 861; |
|
(50) Subchapter B, Chapter 861; |
|
(51) Subchapter C, Chapter 861; |
|
(52) the heading to Subchapter D, Chapter 861; |
|
(53) Section 861.151; |
|
(54) Section 861.152; |
|
(55) Section 861.153; |
|
(56) Section 861.155; |
|
(57) Subchapter E, Chapter 861; |
|
(58) the heading to Subchapter F, Chapter 861; |
|
(59) Section 861.253; |
|
(60) Section 861.254; |
|
(61) Section 861.256; |
|
(62) Section 861.257; |
|
(63) the heading to Subchapter O, Chapter 861; |
|
(64) Section 882.002; |
|
(65) Section 882.003; |
|
(66) Subchapter B, Chapter 882; |
|
(67) Subchapter C, Chapter 882; |
|
(68) Subchapter D, Chapter 882; |
|
(69) Subchapter B, Chapter 883; |
|
(70) Subchapter C, Chapter 883; |
|
(71) Section 883.151; |
|
(72) Section 883.201; |
|
(73) Section 883.202; |
|
(74) Section 883.204; |
|
(75) Subchapter O, Chapter 883; |
|
(76) Section 982.004; |
|
(77) Subchapter B, Chapter 982; |
|
(78) Section 982.101; |
|
(79) Section 982.102; |
|
(80) Section 982.103; |
|
(81) Section 982.104; |
|
(82) Section 982.105; |
|
(83) Section 982.106; |
|
(84) Section 982.113; |
|
(85) Section 982.252; and |
|
(86) Section 982.306. |
|
ARTICLE 4. EFFECTIVE DATE |
|
SECTION 4.01. This Act takes effect immediately if it |
|
receives a vote of two-thirds of all the members elected to each |
|
house, as provided by Section 39, Article III, Texas Constitution. |
|
If this Act does not receive the vote necessary for immediate |
|
effect, this Act takes effect September 1, 2013. |