| (a) The definitions in Insurance Code §964.001
apply to this chapter.
(b) The following words and terms when used in this
chapter have the following meanings unless the context clearly indicates
otherwise:
(1) Administrative services--Insurance-related services
necessary for the operation of a captive insurance company, including:
claims adjustment; underwriting; accounting; investment advice; risk
management; regulatory compliance; compiling statistics and preparing
premium, loss, and tax reports; maintaining books and records; handling
reinsurance matters; and processing premiums.
(2) Annual report--The annual report includes the following
information, as required in the Texas Captive Annual Report form and
instructions adopted under §6.401 of this title:
(A) the captive insurance company's financial statements,
including disclosures and supporting schedules;
(B) an actuarial opinion completed by a qualified actuary
that provides an opinion relating to policy reserves and other actuarial
items for risks insured; and
(C) financial projections every third year, as required
under §6.406 of this title.
(3) Captive management company--A legal entity, not
an individual, that has oversight responsibility for providing any
administrative service to a captive insurance company.
(4) Certificate of filing--Evidence of the acceptance
and filing of an instrument authorized to be filed with the Texas
Secretary of State under the Business Organizations Code, Insurance
Code Chapter 964, and this chapter.
(5) Commissioner--The Texas Commissioner of Insurance.
(6) Department--The Texas Department of Insurance.
(7) General partnership--The term includes a general
partnership designated as a limited liability partnership. The term
does not include a limited partnership, including a limited partnership
designated as a limited liability partnership.
(8) Governing body--The individuals designated by the
captive insurance company, or attorney in fact, who comprise the ultimate
decision-making body of a captive insurance company, or attorney in
fact, including a board of directors or officers of the captive insurance
company, or attorney in fact. This definition applies to the use of
the term in this chapter and the relationship of the captive insurance
company, or attorney in fact, to the department. To the extent that
the term has a different meaning under the Business Organizations
Code related to the formation of entities and filings with the Texas
Secretary of State, this definition does not apply.
(9) Licensed attorney--A person licensed and eligible
to practice law.
(10) Qualified accountant--An independent certified
public accountant or accounting firm that meets the requirements of
Insurance Code §401.011.
(11) Qualified actuary--A person who meets the basic
education, experience, and continuing education requirements set forth
in the Qualification Standards for Actuaries Issuing Statements of
Actuarial Opinion in the United States, promulgated by the American
Academy of Actuaries, and is either:
(A) a member of the American Academy of Actuaries who
has demonstrated actuarial competence to the satisfaction of the Commissioner;
or
(B) a member of the Casualty Actuarial Society.
(12) Qualified United States financial institution--An
institution that:
(A) is organized under the laws of the United States
or any state of the United States;
(B) is regulated, supervised, and examined by a federal
or state authority that has regulatory authority over banks and trust
companies; and
(C) is approved by the Commissioner.
(13) Service providers--Captive management companies
that provide administrative services and individuals or entities providing
legal, actuarial, or auditing services.
(14) Texas Captive Annual Report--The forms, instructions,
and requirements adopted by reference in §6.401 of this title
that are necessary for completing the annual report and other submissions
under this chapter.
(15) Ultimate controlling person--Person or persons
who control a captive insurance company and who are not controlled
by another person.
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