Sec. 2201.201. SCOPE OF AUTHORITY. A risk retention group may engage in the business of insurance in this state only:
(1) as a risk retention group; and
(2) to conduct the activities described in this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Sec. 2201.202. PLAN OF OPERATION. A plan of operation submitted to the commissioner under Section 2201.103 or 2201.152 must be in the form of an analysis that presents the expected activities and results of a risk retention group, including, at a minimum:
(1) information sufficient to verify that the group's members are engaged in businesses or activities that are similar or related with respect to the liability to which those members are exposed by virtue of any related, similar, or common product, trade, business, operations, premises, or services;
(2) for each state in which the group intends to operate, the coverages, deductibles, coverage limits, rates, and rating classification systems for each line of insurance the group intends to offer;
(3) historical and expected loss experience of the proposed members and national experience of similar exposures to the extent that this experience is reasonably available;
(4) pro forma financial statements and projections;
(5) appropriate opinions, including a determination of minimum premium or participation levels required to begin operations and to prevent a hazardous financial condition, by:
(A) a qualified, independent casualty actuary who is a member in good standing of the American Academy of Actuaries; or
(B) an individual who the commissioner recognizes as having comparable training and experience;
(6) identification of management, underwriting and claims procedures, marketing methods, managerial oversight methods, and investment policies; and
(7) other matters prescribed by the insurance laws of the state in which the group is chartered.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
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