Sec. 4007.002. NOTICE TO DEPARTMENT REQUIRED. (a) On forms prescribed by the commissioner, an insurance company shall notify the department not later than the 30th day after the date on which:
(1) balances due from an insurance agent for more than 90 days exceed $1 million or 10 percent of the company's policyholder surplus computed on December 31 of the preceding year or the most recent quarter if a report is specifically required by the department;
(2) an agent's authority to settle claims for the company is withdrawn; or
(3) the contract with an agent is canceled or terminated.
(b) An insurance company may comply with the notification requirement of Subsection (a)(1) by submitting a single annual report if:
(1) the company routinely operates above the limit established by Subsection (a)(1); and
(2) the commissioner verifies that fact under a procedure adopted by the commissioner.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1I.001, eff. April 1, 2009.
Section: Previous 4007.001Last modified: September 28, 2016