The following words and terms, when used in this subchapter,
have the following meanings, unless the context clearly indicates
otherwise:
(1) Affiliate--A person is defined as an affiliate
under §7.202(a)(2) of this title (relating to Definitions).
(2) Approved PEO--A PEO that has received a certificate
of approval from TDI to sponsor a plan.
(3) Cash--Currency and demand deposits with banks and
other financial institutions.
(4) Client--A person who enters into a professional
employer services agreement with a licensed PEO.
(5) Coemployment relationship--A contractual relationship
between a client and a PEO that involves the sharing of employment
responsibilities with or allocation of employment responsibilities
to covered employees in compliance with the professional employer
services agreement and Labor Code Chapter 91, concerning Professional
Employment Organizations.
(6) Commissioner--The commissioner of insurance.
(7) Contracting regulated entity--An entity regulated
by TDI that has contracted with an approved PEO to accept responsibility
for the performance of any requirement of this subchapter.
(8) Controlling person--A person that directly or indirectly
and alone or under an agreement with one or more other persons, exercises
such a controlling influence over the management or policies of the
PEO that it is necessary or appropriate in the public interest or
for the protection of the PEO's covered employees that the person
be considered to control the PEO. A person is presumed to be a controlling
person if:
(A) the person or a person and members of the person's
immediate family directly or indirectly, own, control, or hold with
the power to vote 10 percent or more of the voting securities or authority
of the PEO; or
(B) the person holds proxies representing 10 percent
or more of the voting securities or authority of the PEO, but is not
a corporate officer or director of the PEO.
(9) Covered employee--An individual having a coemployment
relationship with a PEO and a client.
(10) Dependent--A person eligible to enroll in a plan
because of the person's relationship to a covered employee.
(11) Fiduciary--To the extent not inconsistent with
the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. §1002,
concerning Definitions, a person is a plan fiduciary to the extent
that the person:
(A) exercises any discretionary authority or discretionary
control with respect to management of the plan, or exercises any authority
or control with respect to management or disposition of plan assets;
or
(B) has any discretionary authority or discretionary
responsibility in the administration of the plan.
(12) Health status-related factor--Health status; medical
condition, including both physical and mental illnesses; claims experience;
receipt of health care; medical history; genetic information; evidence
of insurability, including conditions arising out of acts of domestic
violence; and disability, to the extent not inconsistent with ERISA,
29 U.S.C. §1182, concerning Prohibiting Discrimination Against
Individual Participants and Beneficiaries Based on Health Status.
(13) Organizational documents--With respect to the
plan and trust, the contracts, articles, bylaws, agreements, plan
documents, trust agreements, or other documents or instruments describing
the rights and obligations of:
(A) the PEO, its clients and coemployees; and
(B) the plan sponsor, its plan, plan trustees, administrators,
and participants.
(14) Participant--A covered employee or dependent enrolled
in a plan, to the extent not inconsistent with ERISA, 29 U.S.C. §1002
and §1144, concerning Other Laws.
(15) Person--An individual, corporation, partnership,
association, joint stock company, trust, or unincorporated organization,
or a similar entity or a combination of the listed entities acting
in concert. The term does not include a securities broker while performing
no more than a function that is usual and customary for a securities
broker.
(16) Professional employer organization or PEO--A business
entity that offers professional employer services, as defined in Labor
Code Chapter 91.
(17) Plan--A self-funded employee health benefit plan
established under Labor Code Chapter 91.
(18) Qualified financial institution--An institution
that:
(A) is organized or, in the case of a United States
branch or agency office of a foreign banking organization, licensed
under the laws of the United States or any state of the United States;
and
(B) is regulated, supervised, and examined by a federal
or state authority that has regulatory authority over banks and trust
companies.
(19) Reserves--A liability representing plan benefit
obligations that have been incurred, whether known or unknown.
(20) TDI--The Texas Department of Insurance.
(21) TDLR--The Texas Department of Licensing and Regulation.
(22) Third party administrator--A person that holds
a certificate of authority under Insurance Code Chapter 4151, Third
Party Administrators.
(23) Trust--A trust established under Texas Property
Code Title 9, Subtitle B, and ERISA, 29 U.S.C. §1103, concerning
Establishment of Trust.
(24) Trustee--A person defined as a trustee under Texas
Property Code Title 9, Subtitle B, to the extent not inconsistent
with ERISA as provided in ERISA, 29 U.S.C. §1144, concerning
Other Laws.
(25) Ultimate controlling person--A person that is
not controlled by another person.
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