| (a) The books and records of a captive insurance company
must be located and maintained within the United States and its territories
at all times. The books and records of a captive insurance company
must be located and maintained within the State of Texas, unless the
commissioner authorizes in writing that the books and records may
be located or maintained outside the state. A captive insurance company
may not locate or maintain records outside of the state until after
the captive insurance company receives the commissioner's written
authorization, and then may only locate or maintain those records
outside of the state in the manner and to the extent that the commissioner
has authorized.
(b) The captive insurance company must provide the
department with a complete list of all of the locations where its
records are located or maintained. Record location and maintenance
locations outside of the state must comply with the commissioner's
authorization described in subsection (a) of this section.
(c) A captive insurance company must make a written
request for authorization from the commissioner to locate or maintain
records outside of the state. The written request must:
(1) identify the specific physical address outside
the State of Texas where the captive insurance company's books and
records will be located or maintained;
(2) identify the types of books and records that will
be located or maintained outside the state, including books and records
in an electronic format;
(3) if applicable, identify the vendor of a leased
or purchased software or electronic platform that will provide services
to the captive insurance company related to the maintenance of the
captive insurance company's books and records; and
(4) if applicable, include the captive insurance company's
continuity plan in the event of cancellation or termination of the
arrangement with a vendor identified by the captive insurance company
under paragraph (3) of this subsection.
(d) All books and records of a captive insurance company
must be:
(1) electronically or physically accessible to the
department on the department's request; and
(2) maintained in a manner that provides an audit trail
between the captive insurance company's general ledger and the captive
insurance company's source documents.
(e) A captive insurance company's books and records
must be maintained with reasonable controls to ensure the integrity,
accuracy, and reliability of the storage system and to prevent the
deterioration of the books and records.
(f) A captive insurance company must ensure that it
can recover its electronic books and records up to one week before
the loss of it primary source of records.
(g) A captive insurance company must be able to access
a complete and current set of its electronic books and records or
a complete and current recovery of its electronic books and records
from a location within the state at all times.
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