Texas Insurance Code - Not Codified - Article 4.54. Management By Certain Entities Prohibited
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Art. 4.54. MANAGEMENT BY CERTAIN ENTITIES PROHIBITED. (a)
An insurance company, group of insurance companies, or other
persons who may have state premium tax liability or the affiliates
of the insurance companies or other persons may not, directly or
indirectly:
(1) manage a certified capital company;
(2) beneficially own, whether through rights, options,
convertible interests, or otherwise, more than 10 percent of the
outstanding voting securities of a certified capital company; or
(3) control the direction of investments for a certified
capital company.
(b) Subsection (a) of this article applies without regard to
whether the insurance company or other person or the affiliate of
the insurance company or other person is licensed by or transacts
business in this state.
(c) This article does not preclude a certified investor,
insurance company, or any other party from exercising its legal
rights and remedies, including interim management of a certified
capital company, if authorized by law, with respect to a certified
capital company that is in default of its statutory or contractual
obligations to the certified investor, insurance company, or other
party.
Added by Acts 2001, 77th Leg., ch. 437, Sec. 1, eff. May 28, 2001.
Article: 3.56 3.70-3D 4.01 4.11A 4.51 4.52 4.53 4.54 4.55 4.56 4.57 4.58 4.59 4.60 4.61
Last modified: August 11, 2007
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