| (19) Person--An individual, corporation, partnership,
association, joint stock company, trust, unincorporated organization,
or similar entity or combination of them acting in concert, but not
a securities broker performing only the usual and customary broker's
function.
(20) Security holder of a specified person--One who
owns any security of the person, including common stock, preferred
stock, debt obligations, and any other security convertible into or
evidencing the right to acquire any of the foregoing. The term "debt
obligation" does not include trade, commercial, or open accounts,
matured claims, or agents' commissions.
(21) Subsidiary of a specified person--An affiliate
controlled by the person directly or indirectly through one or more
intermediaries.
(22) Ultimate controlling person--That person which
is not controlled by another person (as defined in this subsection).
(23) Voting security--Any security or other instrument
giving or granting to the holder the power to vote at a meeting of
shareholders, for or against the election of directors, or any other
matter involving the direction of the management and policies of the
person, or any other security or instrument the department deems to
be of similar nature including, but not limited to, those described
in the rules and regulations the department may prescribe in the public
interest as a voting security.
(b) Exemption--Commercially Domiciled Insurer.
(1) The commissioner may exempt from the provisions
of Insurance Code Chapter 823 and these sections, except the registration
requirement, any commercially domiciled insurer if the commissioner
determines the insurer has assets physically located in this state
or an asset to liability ratio sufficient to justify the conclusion
that there is no reasonable danger that the operations or conduct
of the business of the insurer could present a danger of loss to the
policyholders of this state. The exemption granted under this subsection
must set forth the specific criteria under which it is granted and
will be subject to annual review. The commissioner may, after notice
and opportunity for hearing, rescind an exemption granted to a commercially
domiciled insurer under the provisions of Insurance Code Chapter 823
and these sections. A rescission of an exemption must set forth the
rationale for the rescission. Requests for an exemption under this
subsection must be filed with Financial Analysis, Mail Code 303-1A,
Texas Department of Insurance, P.O. Box 149104, 333 Guadalupe, Austin,
Texas 78714-9104. The request must contain a signed and notarized
affidavit of an executive officer of the insurer that, should the
exemption be granted, the insurer will notify Financial Analysis within
10 days after it no longer meets the criteria set out in this section
on which the exemption is based. In determining that a commercially
domiciled insurer has sufficient assets to justify the conclusion
that there is no reasonable danger that the operations or conduct
of the business of the insurer could present a danger of loss to policyholders
of this state, the commissioner must give consideration to the matters
contacted in subparagraphs (A) - (D) of this paragraph in connection
with an exemption requested under Insurance Code §823.015, and
these sections.
(A) Assets in Texas, which are either:
(i) permanent, free, and unencumbered and physically
located in Texas in an amount equal to the total unpaid losses attributable
to Texas risks; or
(ii) qualifying authorized investments under the Insurance
Code comprising 20 percent of the insurer's admitted assets and physically
located in Texas.
(B) Adequacy of policyholder surplus, based upon:
(i) an asset-to-liability ratio of two to one, if the
insurer is a property and casualty insurer;
(ii) an asset-to-liability ratio of one and one-half
to one, if the insurer is a life, accident and health insurer;
(iii) the insurer having capital and surplus equal
to 250 percent of the minimum risk-based capital described in §7.402
of this title (relating to Risk-Based Capital and Surplus Requirements
for Insurers and HMOs); or
(iv) the insurer having total capital and surplus of
at least $50 million.
(C) Consideration may be given to financial conditions
specified in §8.3 of this title (relating to Hazardous Conditions)
to justify the conclusion that there is no reasonable danger that
the operations or conduct of the business of the insurer could present
a danger of loss to the policyholders of this state.
(D) Consideration may be given to other positive factors
with regard to an insurer's operations or conduct.
(2) The provisions of this subchapter do not apply
to a foreign or alien insurer if the commissioner has approved a total
withdrawal plan from writing all lines of insurance for the insurer
under Insurance Code Chapter 827.
|
| Source Note: The provisions of §7.202 adopted to be effective January 1, 1976; amended to be effective November 30, 1984, 9 TexReg 5926; amended to be effective April 29, 1988, 13 TexReg 1761; amended to be effective April 13, 1992, 17 TexReg 2273; amended to be effective December 24, 1993, 18 TexReg 9310; amended to be effective July 14, 1994, 19 TexReg 5098; amended to be effective May 15, 1996, 21 TexReg 3798; amended to be effective May 5, 2002, 27 TexReg 3559; amended to be effective October 26, 2009, 34 TexReg 7309; amended to be effective May 26, 2013, 38 TexReg 3033 |
