<<Prev Rule

Texas Administrative Code

Next Rule>>
RULE §19.1402Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

  (1) Board--The State Board of Insurance.

  (2) Broker--A person other than an officer or employee of an insurer, who solicits, negotiates, or places reinsurance business on behalf of an insurer and who may not exercise the authority to bind reinsurance on behalf of that insurer.

  (3) Commercially domiciled insurer--A foreign or alien insurer authorized to do business in this state that during its three preceding fiscal years taken together, or any lesser period of time if it has been licensed to transact business in this state only for that lesser period of time, has written an average of more gross premiums in this state than it has written in its state of domicile during the same period with those gross premiums constituting 20% or more of its total gross premiums everywhere in the United States for that three-year or lesser period, as reported in its three most recent annual statements.

  (4) Commissioner--The commissioner of insurance.

  (5) Insurer--A commercially domiciled insurer or other person legally organized in this state to do business as an insurance company, including:

    (A) a capital stock company;

    (B) a mutual company;

    (C) a title insurance company;

    (D) a fraternal benefit society;

    (E) a local mutual aid association;

    (F) a statewide mutual assessment company;

    (G) a county mutual insurance company;

    (H) a Lloyds' plan company;

    (I) a reciprocal or interinsurance exchange;

    (J) a stipulated premium insurance company;

    (K) a group hospital service company;

    (L) a farm mutual insurance company; and

    (M) a risk retention group.

  (6) Manager--A person who has authority to bind reinsurance or who manages all or part of the reinsurance business of an insurer, including the management of a separate division, department, or underwriting office, and who acts as an agent for that insurer. The term does not include:

    (A) an employee of the insurer;

    (B) a manager of the United States branch of an alien insurer;

    (C) an underwriting manager who, under a contract, manages all of the reinsurance operations of an insurer, who is under common control with the insurer under the Code, Article 21.49-1, and whose compensation is not based on the volume of premiums written; or

    (D) the manager of a group, association, pool, or other organization of insurers who engages in joint underwriting or joint reinsurance and who is subject to examination by the insurance commissioner or other appropriate officer of the state in which the manager's principal business office is located.

  (7) Person--An individual, corporation, partnership, association, or other private legal entity.

  (8) Reinsurance intermediary--A broker or manager.

  (9) Underwriting period--The period for which the policy is issued.

Source Note: The provisions of this §19.1402 adopted to be effective April 13, 1992, 17 TexReg 2276.

Link to Texas Secretary of State Home Page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page