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Texas Insurance Code - Not Codified - Article 25.04. Certificate Of Authority

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Art. 25.04. CERTIFICATE OF AUTHORITY.                                          

Article repealed effective April 1, 2007
	(a) An insurance carrier may not be granted a certificate of 
authority to operate under this chapter unless:
	(1)  it or a predecessor carrier was writing the insurance 
coverages authorized by Subdivisions (1) and (2) of Section (a), 
Article 25.02, of this chapter on or before January 1, 1920, in at 
least one state;  and
	(2)  it has policyholders in this state on the effective date 
of this chapter and provides proof of that fact to the board.
	(b)  If a domestic or foreign carrier has complied with the 
requirements of this chapter and all other requirements imposed on 
the company by law;  has paid any deposit imposed by law;  and the 
operational history of the company when reviewed in conjunction 
with its loss experience, the kinds and nature of risks insured, the 
financial condition of the company and its ownership, its proposed 
method of operation, its affiliations, its investments, any 
contracts leading to contingent liability or agreements in respect 
to guaranty and surety, other than insurance, and the ratio of total 
annual premium and net investment income to commission expenses, 
general insurance expenses, policy benefits paid and required 
policy reserve increases, indicates a condition such that the 
expanded operation of the company in this state or its operations 
outside this state will not create a condition that might be 
hazardous to its policyholders, creditors, or the general public, 
the commissioner shall file in the office the documents delivered 
to him and shall issue to the company a certificate of authority to 
transact the kind or kinds of business in this state specified in 
the certificate.  The certificate shall continue in full force and 
effect on the condition that the company continue to comply with the 
laws of this state.
	(c)  Domestic and foreign insurance carriers not meeting the 
requirements of this article must comply with the requirements of 
Chapters 2 and 8 of this code in order for those carriers to be 
permitted to write the insurance coverages authorized by Article 
25.02 of this code.

Added by Acts 1983, 68th Leg., p. 3887, ch. 621, Sec. 1, eff. Aug. 
29, 1983.

Last modified: August 11, 2007