This subchapter of the rules and regulations of the State Board of Insurance is promulgated and adopted pursuant to the authority provided in the Insurance Code, Articles 1.32, 3.55-1, and 21.28-A. The sections in this subchapter apply to any person, organization, association, or company (authorized or unauthorized, admitted or nonadmitted) acting as an insurer, or as principal or agent of an insurer, including stock companies, reciprocals or interinsurance exchanges, Lloyd's associations, fraternal benefit societies, stipulated premium companies, title insurance companies, and mutual companies of all kinds, including statewide mutual assessment corporations, local mutual aid associations, burial associations, county mutual insurance companies, and farm mutual insurance companies. The purpose of these rules and regulations is to enumerate conditions which may indicate an insurer is in hazardous condition and which may be a basis for the commissioner of insurance to initiate an action against an insurer under the Insurance Code, Articles 1.32, 3.55-1. or 21.28-A. In evaluating any of these conditions, all circumstances concerning the insurer's operation must be evaluated in making an ultimate conclusion that an insurer is in hazardous condition. The evaluation of the information relating to these conditions is part of the examination process. The conditions enumerated in this subchapter do not conclusively indicate that an insurance company is in hazardous conditions. One or more of the conditions can exist in an insurance company which is in satisfactory condition; however, one or more of these conditions has often been found in an insurance company which was unable to perform its obligations to policyholders, claimants, creditors, or shareholders, or has required the commissioner of insurance to initiate regulatory action to protect policyholders, claimants, creditors, and shareholders.