Texas Insurance Code - Not Codified - Article 1.10. Certain Duties Of The Department
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Art. 1.10. CERTAIN DUTIES OF THE DEPARTMENT. In addition to
the other duties required of the department, the department shall
perform duties as follows:
1. Deleted by Acts 1999, 76th Leg., ch. 101, Sec. 4, eff.
Sept. 1, 1999.
2. File Articles of Incorporation and Other Papers. File and
preserve in its office all acts or articles of incorporation of
insurance companies and all other papers required by law to be
deposited with the Department and, upon application of any party
interested therein, furnish certified copies thereof upon payment
of the fees prescribed by law.
Text of Sec. 3 effective until April 1, 2007
3. Shall Calculate Reserve. For every company transacting
any kind of insurance business in this State, for which no basis is
prescribed by law, the Department shall calculate the reinsurance
reserve upon the same basis prescribed in Section 862.102 of this
code as to companies transacting fire insurance business.
Text of Sec. 4 effective until April 1, 2007
4. To Calculate Re-insurance Reserve. On the thirty-first
day of December of each and every year, or as soon thereafter as may
be practicable, the Department shall have calculated in the
Department the re-insurance reserve for all unexpired risks of all
insurance companies organized under the laws of this state, or
transacting business in this state, transacting any kind of
insurance other than life, fire, marine, inland, lightning or
tornado insurance, which calculation shall be in accordance with
the provisions of Paragraph 3 hereof.
Text of Sec. 5 effective until April 1, 2007
5. When a Company's Surplus is Impaired. No impairment of the
capital stock of a stock company shall be permitted. No impairment
of the surplus of a stock company, or of the minimum required
aggregate surplus of a mutual, Lloyd's, or reciprocal insurer,
shall be permitted in excess of that provided by this section.
Having charged against a company other than a life insurance
company, the reinsurance reserve, as prescribed by the laws of this
State, and adding thereto all other debts and claims against the
company, the Commissioner shall, (i) if it is determined that the
surplus required by Section 822.054, 822.202, 822.203, 822.205,
822.210, 822.211, or 822.212 of this code of a stock company doing
the kind or kinds of insurance business set out in its Certificate
of Authority is impaired to the extent of more than fifty (50%) per
cent of the required surplus for a capital stock insurance company,
or is less than the minimum level of surplus required by
Commissioner promulgated risk-based capital and surplus
regulations, or (ii) if it is determined that the required
aggregate surplus of a reciprocal or mutual company, or the
required aggregate of guaranty fund and surplus of a Lloyd's
company, other than a life insurance company, doing the kind or
kinds of insurance business set out in its Certificate of Authority
is impaired to the extent of more than twenty-five per cent (25%) of
the required aggregate surplus, or is less than the minimum level of
surplus required by Commissioner promulgated risk-based capital
and surplus regulations, the Commissioner shall order the company
to remedy the impairment of surplus to acceptable levels specified
by the Commissioner or to cease to do business within this State.
The Commissioner shall thereupon immediately institute such
proceedings as may be necessary to determine what further actions
shall be taken in the case.
6. Shall Publish Results of Investigation. The Department
shall publish the result of an examination of the affairs of any
company whenever the Commissioner deems it for the interest of the
public.
7 to 14. Deleted by Acts 1999, 76th Leg., ch. 101, Sec. 4,
eff. Sept. 1, 1999.
15, 16. Deleted by Acts 2001, 77th Leg., ch. 1419, Sec. 4,
eff. June 1, 2003.
Text of Sec. 17 effective until April 1, 2007
17. Voluntary Deposits. (a) In the event any insurance
company organized and doing business under the provisions of this
Code shall be required by any other state, country or province as a
requirement for permission to do an insurance business therein to
make or maintain a deposit with an officer of any state, country, or
province, such company, at its discretion, may voluntarily deposit
with the Comptroller such securities as may be approved by the
Commissioner of Insurance to be of the type and character
authorized by law to be legal investments for such company, or cash,
in any amount sufficient to enable it to meet such requirements.
The Comptroller is hereby authorized and directed to receive such
deposit and hold it exclusively for the protection of all
policyholders or creditors of the company wherever they may be
located, or for the protection of the policyholders or creditors of
a particular state, country or province, as may be designated by
such company at the time of making such deposit. The company may,
at its option, withdraw such deposit or any part thereof, first
having deposited with the Comptroller, in lieu thereof, other
securities of like class and of equal amount and value to those
withdrawn, which withdrawal and substitution must be approved by
the Commissioner of Insurance. The proper officer of each
insurance company making such deposit shall be permitted at all
reasonable times to examine such securities and to detach coupons
therefrom, and to collect interest thereon, under such reasonable
rules and regulations as may be prescribed by the Comptroller and
the Commissioner of Insurance. Any deposit so made for the
protection of policyholders or creditors of a particular state,
country or province shall not be withdrawn, except by substitution
as provided above, by the company, except upon filing with the
Commissioner of Insurance evidence satisfactory to him that the
company has withdrawn from business, and has no unsecured
liabilities outstanding or potential policyholder liabilities or
obligations in such other state, country or province requiring such
deposit, and upon the filing of such evidence the company may
withdraw such deposit at any time upon the approval of the
Commissioner of Insurance. Any deposit so made for the protection
of all policyholders or creditors wherever they may be located
shall not be withdrawn, except by substitution as provided above,
by the company except upon filing with the Commissioner of
Insurance evidence satisfactory to him that the company does not
have any unsecured liabilities outstanding or potential policy
liabilities or obligations anywhere, and upon filing such evidence
the company may withdraw such deposit upon the approval of the
Commissioner of Insurance. For the purpose of state, county and
municipal taxation, the situs of any securities deposited with the
Comptroller hereunder shall be in the city and county where the
principal business office of such company is fixed by its charter.
(b) Any voluntary deposit held by the Comptroller or the
Department heretofore made by any insurance company in this State,
and which deposit was made for the purpose of gaining admission to
another state, may be considered, at the option of such company, to
be hereinafter held under the provisions of this Act.
(c) When two or more companies merge or consolidate or enter
a total reinsurance contract by which the ceding company is
dissolved and its assets acquired and liabilities assumed by the
surviving company, and the companies have on deposit with the
Comptroller two or more deposits made for identical purposes under
this section or Article 4739, Revised Statutes, as amended, and now
repealed, all such deposits, except the deposit of greatest amount
and value, may be withdrawn by the new surviving or reinsuring
company, upon proper showing of duplication of such deposits and
that the company is the owner thereof.
(d) Any company which has made a deposit or deposits under
this section or Article 4739, Revised Statutes, as amended and now
repealed, shall be entitled to a return of such deposits upon proper
application therefor and a showing before the Commissioner that
such deposit or deposits are no longer required under the laws of
any state, country or province in which such company sought or
gained admission to do business upon the strength of a certificate
of such deposit.
(e) Upon being furnished a certified copy of the
Commissioner's order issued under Subsection (c) or (d) above, the
Comptroller shall release, transfer and deliver such deposit or
deposits to the owner as directed in said order.
18 to 20. Deleted by Acts 2003, 78th Leg., ch. 1274, Sec. 8.
Acts 1951, 52nd Leg., ch. 491. Amended by Acts 1955, 54th Leg., p.
413, ch. 117, Sec. 2; Acts 1959, 56th Leg., p. 280, ch. 157, Sec. 1;
Acts 1959, 56th Leg., p. 637, ch. 291, Sec. 3; Acts 1967, 60th Leg.,
p. 1825, ch. 705, Sec. 1 to 3, eff. Aug. 28, 1967; Acts 1979, 66th
Leg., p. 574, ch. 264, Sec. 1, eff. Aug. 27, 1979; Acts 1981, 67th
Leg., p. 412, ch. 170, Sec. 1, eff. May 20, 1981.
Sec. 11 amended and Secs. 18, 19 added by Acts 1983, 68th Leg., p.
3894, ch. 622, Sec. 4, 17, eff. Sept. 1, 1983; Sec. 7 amended by
Acts 1987, 70th Leg., ch. 416, Sec. 1, eff. June 17, 1987; Secs. 7,
13 amended by Acts 1987, 70th Leg., 2nd C.S., ch. 67, Sec. 4, eff.
Aug. 4, 1987. Amended by Acts 1989, 71st Leg., ch. 273, Sec. 6, eff.
Aug. 28, 1989; Sec. 16 amended by Acts 1989, 71st Leg., ch. 1082,
Sec. 1.01, eff. Sept. 1, 1989; Sec. 5 amended by Acts 1991, 72nd
Leg., ch. 242, Sec. 7.07, eff. Sept. 1, 1991; Sec. 7(a) amended by
Acts 1991, 72nd Leg., ch. 242, Sec. 1.06, eff. Sept. 1, 1991; Sec.
20 added by Acts 1991, 72nd Leg., 2nd C.S., ch. 12, Sec. 1.26, eff.
Jan. 1, 1992. Amended by Acts 1993, 73rd Leg., ch. 685, Sec. 1.07,
eff. Sept. 1, 1993; Sec. 7(a) amended by Acts 1997, 75th Leg., ch.
195, Sec. 1, eff. Sept. 1, 1997; Sec. 17 amended by Acts 1997, 75th
Leg., ch. 1423, Sec. 11.01, eff. Sept. 1, 1997. Amended by Acts
1999, 76th Leg., ch. 101, Sec. 4, eff. Sept. 1, 1999; Acts 2001,
77th Leg., ch. 1419, Sec. 4, eff. June 1, 2003; Acts 2003, 78th
Leg., ch. 1274, Sec. 8, eff. April 1, 2005; Secs. 3, 4, ,5, and 17
are repealed by Acts 2005, 79th Leg., ch. 727, Sec. 18(b), eff.
April 1, 2007.
Article: 1.01 1.02 1.04A 1.04D 1.09-1 1.10 1.12 1.13 1.14-3 1.15 1.15A 1.15B 1.16 1.17 1.17A
Last modified: August 11, 2007
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