SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 823.001 - Findings And Purpose
(a) It is consistent with the public interest and the interest of policyholders to permit insurers to: (1) engage in activities that would enable the...
- Texas Section 823.002 - Definitions
In this chapter: (1) "Acquiring person" means the person who is acquiring control of a domestic insurer or on whose behalf control of a domestic...
- Texas Section 823.003 - Classification As Affiliate Or Subsidiary
(a) A person is an affiliate of another if the person directly or indirectly through one or more intermediaries controls, is controlled by, or is...
- Texas Section 823.004 - Classification As Commercially Domiciled Insurer
(a) For purposes of this chapter, a foreign or alien insurer authorized to engage in the business of insurance in this state is a commercially...
- Texas Section 823.005 - Description Of Control; Determination Of Control
(a) For purposes of this chapter, control is the power to direct, or cause the direction of, the management and policies of a person, other...
- Texas Section 823.006 - Description Of Insurance Holding Company System
An insurance holding company system consists of two or more affiliates, at least one of which is an insurer. Added by Acts 2001, 77th Leg.,...
- Texas Section 823.007 - Description Of Voting Security
For purposes of this chapter, a voting security is a security or an instrument that: (1) has the power at a meeting of shareholders of...
- Texas Section 823.008 - Standard For Determining Surplus Reasonableness And Adequacy
(a) In determining whether an insurer's policyholders' surplus is reasonable in relation to the insurer's outstanding liabilities and adequate to the insurer's financial needs, the...
- Texas Section 823.009 - Situs Of Securities Of Domestic Insurer
For purposes of this chapter, the situs of the ownership of securities of a domestic insurer is considered to be in this state. Added by...
- Texas Section 823.010 - Disclaimer Of Affiliation
(a) A disclaimer of affiliation with an authorized insurer may be filed with the commissioner by any person, including the authorized insurer or a member...
- Texas Section 823.011 - Confidentiality Of Information
(a) This section applies only to information, including documents and copies of documents, that is: (1) reported or otherwise provided under Subchapter B or C...
- Texas Section 823.012 - Rules; Procedures For Considering Certain Distributions
(a) The commissioner may, after notice and opportunity for all interested persons to be heard, adopt rules and issue orders to implement this chapter, including...
- Texas Section 823.013 - Mandamus
A person aggrieved by the failure of the commissioner to act, including making a determination, as required by this chapter may petition a district court...
- Texas Section 823.014 - Applicability Of Chapter To Foreign Or Alien Insurer
(a) A foreign insurer that is authorized to engage in the business of insurance in this state and that is domiciled in a jurisdiction that...
- Texas Section 823.0145 - Supervisory Colleges
(a) With respect to any insurer registered under Subchapter B, and in accordance with Subsection (c), the commissioner may participate in a supervisory college for...
SUBCHAPTER B REGISTRATION
- Texas Section 823.015 - Exemption From Chapter
The commissioner may exempt from the application of this chapter a commercially domiciled insurer that the commissioner determines has assets physically located in this state...
- Texas Section 823.051 - Registration By Insurer Required
(a) Each insurer authorized to engage in the business of insurance in this state that is a member of an insurance holding company system shall...
- Texas Section 823.052 - Required Information; Registration Statement
(a) To register as required by Section 823.051, an insurer must file a registration statement with the department. (b) The registration statement must be in...
- Texas Section 823.053 - Reporting Material Changes
(a) To keep the information required to be disclosed in a registration statement filed under Section 823.052 current, a registered insurer shall report each material...
- Texas Section 823.054 - Material Information
(a) Information about a transaction is not required to be disclosed on a registration statement filed under Section 823.052 or in a report under Section...
- Texas Section 823.055 - Annual Registration Statement; Summary Of Material Changes
(a) In this section, "ultimate controlling person" means the person in an insurance holding company system who is not controlled by another person. (b) Not...
- Texas Section 823.056 - Termination Of Registration
The commissioner shall terminate the registration of an insurer that demonstrates that the insurer has ceased to be a member of an insurance holding company...
- Texas Section 823.057 - Consolidated Filing
The commissioner may require or permit two or more insurers that are affiliates of each other and that are required to register under this chapter...
- Texas Section 823.058 - Alternative Registration
The commissioner may permit an insurer authorized to engage in the business of insurance in this state that is a part of an insurance holding...
- Texas Section 823.059 - Exemptions
(a) The registration requirement under Section 823.051 does not apply to a foreign or nondomestic insurer, other than a commercially domiciled insurer, that is subject...
- Texas Section 823.0595 - Enterprise Risk Report
(a) Except as provided by Subsections (d) and (f), the ultimate controlling person, as defined by Section 823.055, of each insurer required to file an...
SUBCHAPTER C TRANSACTIONS OF REGISTERED INSURER
- Texas Section 823.060 - Violation Of Subchapter
The failure to file a registration statement or an amendment to a registration statement, or an enterprise risk report, within the time specified for filing...
- Texas Section 823.101 - Standards For Transaction Within An Insurance Holding Company System
(a) This section applies only to a material transaction within an insurance holding company system to which an insurer subject to a registration under Section...
- Texas Section 823.103 - Notice Of And Commissioner's Decision On Specified Transactions
(a) This section applies only to: (1) a sale, purchase, exchange, loan or other extension of credit, or investment between a domestic insurer and any...
- Texas Section 823.104 - Prohibition Of Action To Avoid Application Of Subchapter
(a) A domestic insurer may not enter into transactions with persons in the insurer's insurance holding company system if: (1) the transactions are part of...
- Texas Section 823.105 - Type Of Authority Provided
Nothing in Section 823.103 or 823.104 authorizes a transaction that would violate law that is applicable to an insurer that is not subject to this...
- Texas Section 823.106 - Standards Of Review; Reasons For Disapproval
(a) In reviewing a transaction under this subchapter, the commissioner shall consider whether the transaction: (1) complies with the standards provided by Section 823.101; and...
SUBCHAPTER D CONTROL OF DOMESTIC INSURER; ACQUISITION OR MERGER
- Texas Section 823.107 - Extraordinary Dividends Or Distributions
(a) Except as provided by Subsection (b), for purposes of this section, an extraordinary dividend or distribution includes the payment of a dividend or distribution...
- Texas Section 823.151 - Presumption Of Control
(a) Control of an entity is presumed if: (1) a person or a person and members of the person's immediate family, directly or indirectly, own,...
- Texas Section 823.152 - Employment Of Experts
(a) The commissioner may employ an attorney, actuary, accountant, or other expert who is not a member of the commissioner's staff and who is reasonably...
- Texas Section 823.153 - Controller Of Domestic Insurer Considered Domestic Insurer
For purposes of this subchapter, any person who controls a domestic insurer is considered to be a domestic insurer unless: (1) the assets of all...
- Texas Section 823.154 - Requirements For Acquisition Or Exercise Of Control Or Divestiture Of Domestic Insurer
(a) Before a person who directly or indirectly controls, or after the acquisition would directly or indirectly control, a domestic insurer may in any manner...
- Texas Section 823.155 - Amendment Of Statement
If a material change occurs in the facts contained in a statement filed under Section 823.154, the person required to file the statement shall, not...
- Texas Section 823.156 - Notice Expenses
(a) A person who files a statement under Section 823.154 shall pay the expenses of mailing each related notice required by the commissioner. (b) As...
- Texas Section 823.157 - Approval Of Acquisition, Change, Or Divestiture Of Control
(a) The commissioner shall approve or deny an acquisition, change, or divestiture of control for which a statement or notice is filed under Section 823.154...
- Texas Section 823.159 - Hearing; Time Of Determination
(a) A hearing under Section 823.152, 823.157, or 823.160 shall be held not later than the 60th day after the date of the denial. (b)...
- Texas Section 823.160 - Deadline For Completion Of Acquisition
(a) An acquisition of control of a domestic insurer must be completed not later than the 90th day after the date of the commissioner's order...
- Texas Section 823.161 - Insurer's Duty To Notify
(a) Not later than the 30th day after the date an event requiring notice under this subchapter occurs, an insurer authorized to engage in the...
- Texas Section 823.162 - Prohibition On Certain Actions Related To Acquisition Of Control Or Merger
A person may not effect or attempt to effect an acquisition of control of or merger with a domestic insurer unless the commissioner has approved...
- Texas Section 823.163 - Retention Of Control
(a) This section applies only to a domestic insurer that is a controlled insurer, regardless of when that control was acquired. (b) A person violates...
- Texas Section 823.164 - Exemptions From Subchapter
(a) This subchapter does not apply to a transaction that is subject to: (1) Subchapter K or L , Chapter 882; or (2) Section 887.065...
SUBCHAPTER E ACQUISITION STATEMENT
- Texas Section 823.165 - Violation Of Subchapter
The failure to file a statement, amendment, or other material required to be filed under this subchapter is a violation of this subchapter. Added by...
- Texas Section 823.201 - Acquiring Person
(a) A statement required under Section 823.154 must contain the name and address of the acquiring person. (b) If the acquiring person is an individual,...
- Texas Section 823.202 - Consideration For Acquisition
(a) A statement required under Section 823.154 must contain: (1) the source, nature, and amount of consideration for the acquisition of control; (2) a description...
- Texas Section 823.203 - Financial Information About Acquiring Person
(a) A statement required under Section 823.154 must contain: (1) fully audited financial information about the earnings and financial condition of the acquiring person for...
- Texas Section 823.204 - Plan For Future Of Insurer
A statement required under Section 823.154 must contain: (1) any plan or proposal of the acquiring person to: (A) cause the insurer to pay dividends...
- Texas Section 823.205 - Voting Securities
(a) In this section, "voting security" means a voting security of a domestic insurer the acquisition of which requires the filing of a statement under...
- Texas Section 823.206 - Additional Information About Acquiring Organization
(a) If the person required to file the statement under Section 823.154 is a partnership, limited partnership, syndicate, or other group, the commissioner may require...
SUBCHAPTER F INSURER'S LOANS TO OR INVESTMENT IN AFFILIATE
- Texas Section 823.207 - Oath Or Affirmation Required
A statement required under Section 823.154 must be made under oath or affirmation. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June...
- Texas Section 823.251 - Definition
In this subchapter, "securities" includes common stock, preferred stock, and debt obligations. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
- Texas Section 823.252 - General Authority Relating To Affiliates
A domestic insurer, by itself or in cooperation with one or more other persons, may organize, acquire, invest in, or make loans to one or...
- Texas Section 823.253 - General Standard For Investment In Affiliate
(a) A domestic insurer may invest in the securities of one or more of the insurer's affiliates organized for any lawful purpose if: (1) the...
- Texas Section 823.254 - Standard For Investment In Affiliate By Insurer With Low Total Liabilities
If a domestic insurer's total liabilities, as computed for National Association of Insurance Commissioners annual statement purposes, are less than 10 percent of the insurer's...
- Texas Section 823.255 - Agreement Of Affiliate To Limit Certain Investments
(a) A domestic insurer may invest any amount in the securities of one or more affiliates organized for any lawful purpose if each affiliate agrees...
- Texas Section 823.256 - Commissioner's Approval Of Investment
With the prior approval of the commissioner, a domestic insurer may invest any amount in the securities of one or more affiliates if after the...
- Texas Section 823.257 - Determination Required Before Investment
(a) Whether an investment meets an applicable requirement of this subchapter shall be determined before the investment is made by applying that requirement as if...
- Texas Section 823.258 - Disposition Of Investment In Subsidiary After Cessation Of Control
(a) An insurer that ceases to control a subsidiary shall dispose of any investment in the subsidiary made under this subchapter before the third anniversary...
SUBCHAPTER G VALUATION OF INVESTMENT FOR FINANCIAL STATEMENT
- Texas Section 823.259 - Exemption From Certain Limitations; Investment Authority Cumulative Of Other Law
(a) An investment made under this subchapter is not subject to the restrictions and prohibitions relating to investments contained in this code other than those...
- Texas Section 823.301 - Scope Of Subchapter
(a) This subchapter applies only to the determination of the valuation for a financial statement of an investment by an insurer in an affiliate that...
- Texas Section 823.302 - Bases For Determining Valuation
Subject to this subchapter, the valuation of an investment to which this subchapter applies is the greater of: (1) the net shareholder equity value that...
- Texas Section 823.303 - Adjustment To Determination
If an affiliate is valued using a method other than the method provided by Section 823.302(2)(C), the valuation of the investment is computed by subtracting...
- Texas Section 823.304 - Use Of Different Bases
An insurer is not required to value the stock of all of its affiliates on the same basis. Added by Acts 2001, 77th Leg., ch....
- Texas Section 823.305 - Valuating Acquired Affiliate
(a) Not later than the 30th day after the date an insurer acquires an affiliate that is not an insurer, the insurer shall file with...
- Texas Section 823.306 - Use Of Unaudited Information
If an affiliate is valued using the basis provided by Section 823.302(2)(A) and the books of the affiliate are not audited at the time the...
SUBCHAPTER H EXAMINATIONS
- Texas Section 823.307 - Modification By Commissioner
After notice and opportunity for a hearing, the commissioner may: (1) determine that the basis used for valuation of the stock of an affiliate does...
- Texas Section 823.351 - Examination Of Insurer
(a) Subject to Section 823.352, the commissioner may order an insurer registered under Subchapter B to produce records, books, or other information papers in the...
- Texas Section 823.352 - Limitation On Power
The commissioner may exercise power under Section 823.351 only if: (1) examination of the insurer under another provision of this code is inadequate; or (2)...
- Texas Section 823.353 - Payment Of Examination Costs
(a) Each registered insurer that complies with an order under Section 823.351(a) shall pay the expense of the examination in accordance with Sections 401.151, 401.152,...
- Texas Section 823.354 - Use Of Advisors
(a) The commissioner may employ at the registered insurer's expense attorneys, actuaries, accountants, and other experts that are not a part of the commissioner's staff...
SUBCHAPTER I LIMITATIONS RELATING TO CONTROLLED INSURERS
- Texas Section 823.355 - Cumulative Authority
The authority provided by this subchapter is in addition to other powers relating to the examination of insurers given to the commissioner under this code....
- Texas Section 823.401 - Prohibition Of Indirect Action For Controlled Insurer
(a) A holding company or controlled person may not directly or indirectly do or cause to be done for or on behalf of a controlled...
- Texas Section 823.402 - Prohibition On Voting Certain Securities
(a) A security that is the subject of an agreement or arrangement regarding an acquisition or that is acquired or to be acquired in violation...
SUBCHAPTER J CIVIL REMEDIES AND SANCTIONS
- Texas Section 823.403 - Management Of Controlled Insurer
(a) The control of an authorized insurer by another person does not relieve an officer or director of the insurer of any obligation or liability...
- Texas Section 823.451 - Receivership
If it appears to the commissioner that a person's violation of this chapter so impairs the financial condition of a domestic insurer as to threaten...
- Texas Section 823.452 - Revocation, Suspension, Or Nonrenewal Of Insurer's Authority
(a) If it appears to the commissioner that a person's violation of this chapter makes the continued operation of an insurer contrary to the interest...
- Texas Section 823.453 - Voiding Unauthorized Action
If it appears to the commissioner that a person has entered into a transaction or performed an act before complying with the applicable provisions of...
- Texas Section 823.454 - Administrative Penalty
(a) A director or officer of an insurer or insurance holding company system that is subject to this chapter is subject to an administrative penalty...
- Texas Section 823.455 - Equitable Relief
(a) If it appears to the commissioner that an insurer or a director, officer, employee, or agent of an insurer has committed or is about...
- Texas Section 823.456 - Seizure Or Sequestration Of Voting Securities
If a person acquires or is proposing to acquire a voting security in violation of this chapter or a rule or order under this chapter,...
- Texas Section 823.457 - Long Arm Jurisdiction; Service Of Process
(a) The courts of this state have jurisdiction over a person who is not a resident of, domiciled in, or authorized to engage in business...
SUBCHAPTER K CRIMINAL PENALTIES
- Texas Section 823.458 - Sanctions
An entity that holds a certificate of authority issued by the department and that violates this code is subject to sanctions under Chapter 82. Added...
- Texas Section 823.501 - Offense Of Violating Chapter
(a) A person commits an offense if the person is an insurer or individual and wilfully violates this chapter. (b) If the person is an...
- Texas Section 823.502 - Offense Of Subscribing To Or Making False Statement
(a) A person commits an offense if the person is an officer, director, or employee of a domestic insurer or the insurer's insurance holding company...
- Texas Section 823.503 - Beginning Criminal Proceedings
If it appears to the commissioner that an insurer or a director, officer, employee, or agent of an insurer has wilfully violated this chapter, the...