Texas Insurance Code - Section 401.017. Notice Of Adverse Financial Condition Or Misstatement Of Financial Condition
Legal Research Home >
Texas Lawyer > Insurance Code > Texas Insurance Code - Section 401.017. Notice Of Adverse Financial Condition Or Misstatement Of Financial Condition
§ 401.017. NOTICE OF ADVERSE FINANCIAL CONDITION OR
MISSTATEMENT OF FINANCIAL CONDITION. (a) An insurer or health
maintenance organization required to file an audited financial
report under this subchapter shall require the insurers or health
maintenance organization's accountant to immediately notify the
board of directors of the insurer or health maintenance
organization or the insurer's or health maintenance organization's
audit committee in writing of any determination by that accountant
that:
(1) the insurer or health maintenance organization has
materially misstated the insurer's or health maintenance
organization's financial condition as reported to the commissioner
as of the balance sheet date being audited; or
(2) the insurer or health maintenance organization
does not meet the minimum capital and surplus requirements
prescribed by this code for the insurer or health maintenance
organization as of that date.
(b) An insurer or health maintenance organization that
receives a notice described by Subsection (a) shall:
(1) provide to the commissioner a copy of the notice
not later than the fifth business day after the date the insurer or
health maintenance organization receives the notice; and
(2) provide to the accountant evidence that the notice
was provided to the commissioner.
(c) If the accountant does not receive the evidence required
by Subsection (b)(2) on or before the fifth business day after the
date the accountant notified the insurer or health maintenance
organization under Subsection (a), the accountant shall file with
the commissioner a copy of the accountant's written notice not
later than the 10th business day after the date the accountant
notified the insurer or health maintenance organization.
(d) An accountant is not liable to an insurer or health
maintenance organization or the insurer's or health maintenance
organization's policyholders, shareholders, officers, employees,
directors, creditors, or affiliates for a statement made under this
section if the statement was made in good faith to comply with this
section.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 401.010 401.011 401.012 401.013 401.014 401.015 401.016 401.017 401.018 401.019 401.020 401.021 401.051 401.052 401.053
Last modified: August 11, 2007
|
