The following words and terms, when used in this subchapter,
have the following meanings unless the context clearly indicates otherwise.
(1) Associated consumer transaction--A retail exchange
of goods or services other than insurance which is the basis of the
relationship between the specialty license holder and its customer.
(2) Control--The power to direct or cause the direction
of the management and policies of a specialty license holder, whether
directly or indirectly. For the purpose of this subchapter, a person
is considered to control:
(A) a corporate specialty license holder if the person
is an officer or director of the corporation or if the person, individually
or acting with others, directly or indirectly, holds with the power
to vote, owns, or controls, or holds proxies representing, at least
10% of the voting stock or voting rights of the corporate specialty
license holder; or
(B) a partnership if the person through a right to
vote or through any other right or power exercises rights in the management,
direction, or conduct of the business of the partnership.
(3) Corporation--A legal entity organized under the
business corporations laws or limited liability company laws of this
state, another state, or a territory of the United States.
(4) Credit accident and health insurance--A type of
insurance as set out in Insurance Code Chapter 1153, concerning Credit
Life Insurance and Credit Accident and Health Insurance.
(5) Credit involuntary unemployment insurance--A type
of insurance as set out in Insurance Code Chapter 3501, concerning
Credit Involuntary Unemployment Insurance.
(6) Credit life insurance--A type of insurance as set
out in Insurance Code Chapter 1153, concerning Credit Life Insurance
and Credit Accident and Health Insurance.
(7) Department--The Texas Department of Insurance.
(8) Depository institution--Any bank or savings association
as defined under 12 U.S.C. §1813 including a state or federal
credit union.
(9) Employee--A person that:
(A) is trained to act individually on behalf of the
specialty license holder;
(B) is acting on behalf of and under the supervision
of the license holder; and
(C) is not compensated based primarily on the amount
of insurance sold.
(10) Franchisee--A person that is granted a franchise
by a franchisor.
(11) Location--A place of business.
(12) Franchisor--A person that grants a franchise to
a franchisee.
(13) Partnership--An association of two or more persons
organized under the partnership laws or limited liability partnership
laws of this state, another state, or a territory of the United States.
(14) Person--An individual, partnership, corporation,
or depository institution.
(15) Specialty insurance product--Any of the types
of insurance set out in Insurance Code Chapter 4055, concerning Specialty
Agents.
(16) Specialty license holder or specialty licensee--A
person who holds a license under Insurance Code Chapter 4055.
(17) Supervision--Supplying trained employees with
forms, specific requirements, and procedures necessary for the sale
of insurance under the specialty license.
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| Source Note: The provisions of this §19.1902 adopted to be effective February 20, 2001, 26 TexReg 1545; amended to be effective December 27, 2001, 26 TexReg 10603; amended to be effective June 19, 2023, 48 TexReg 3285 |
