Texas Insurance Code - Section 463.003. Definitions
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§ 463.003. DEFINITIONS. In this chapter:
(1) "Association" means the Life, Accident, Health,
and Hospital Service Insurance Guaranty Association.
(2) "Board" means the board of directors of the
association.
(3) "Contractual obligation" means an obligation
under a policy or contract or certificate under a group policy or
contract, or part of a policy or contract or certificate, for which
coverage is provided under Subchapter E.
(4) "Covered policy" means a policy or contract with
respect to which this chapter provides coverage as determined under
Subchapter E.
(5) "Impaired insurer" means a member insurer that:
(A) is placed under an order of supervision,
liquidation, rehabilitation, or conservation under Chapter 441 or
442 and is designated by the commissioner as an impaired insurer;
or
(B) is determined in good faith by the
commissioner to be unable or potentially unable to fulfill the
insurer's contractual obligations.
(6) "Insolvent insurer" means a member insurer that:
(A) has a minimum free surplus, if a mutual
insurance company, or required capital, if a stock insurance
company, that is impaired to an extent prohibited by law; and
(B) the commissioner designates as an insolvent
insurer.
(7) "Member insurer" means an insurer that is required
to participate in the association under Section 463.052.
(8) "Person" means an individual, corporation,
partnership, association, or voluntary organization.
(9) "Premium" means an amount received on a covered
policy, less any premium, consideration, or deposit returned on the
policy, and any dividend or experience credit on the policy. The
term does not include:
(A) an amount received for a part of a policy or
contract for which coverage is not provided under Section 463.202,
except that assessable premiums may not be reduced because of:
(i) an interest limitation provided by
Section 463.203(b)(3); or
(ii) a limitation provided by Section
463.204 with respect to a single individual, participant,
annuitant, or contract holder;
(B) premiums in excess of $5 million on an
unallocated annuity contract not issued under a governmental
retirement plan established under Section 401, 403(b), or 457,
Internal Revenue Code of 1986 ; or
(C) premiums received from the state treasury or
the United States treasury for insurance for which this state or the
United States contracts to:
(i) provide welfare benefits to designated
welfare recipients; or
(ii) implement Title 2, Human Resources
Code, or the Social Security Act (42 U.S.C. Section 301 et seq.).
(10) "Resident" means a person who resides in this
state at the time a member insurer that owes a contractual
obligation to the person is determined to be impaired or insolvent.
For the purposes of this subdivision:
(A) a person is considered to be a resident of
only one state; and
(B) a person other than an individual is
considered to be a resident of the state in which the person's
principal place of business is located.
(11) "Supplemental contract" means an agreement for
the distribution of policy or contract proceeds.
(12) "Unallocated annuity contract" means an annuity
contract or group annuity certificate that is not issued to and
owned by an individual, except to the extent of any annuity benefits
guaranteed to an individual by an insurer under the contract or
certificate.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 462.308 462.309 462.310 462.311 462.351 463.001 463.002 463.003 463.004 463.005 463.006 463.051 463.052 463.053 463.054
Last modified: August 10, 2007
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