SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 841.001 - Definitions
Sec. 841.001. DEFINITIONS. (1) "Accident insurance company" means a corporation authorized under a charter to engage in business involving the payment of money or another...
- Texas Section 841.002 - Applicability Of Chapter And Other Law
Except as otherwise expressly provided by this code, each insurance company incorporated or engaging in business in this state as a life insurance company, an...
- Texas Section 841.003 - Applicability Of Law Governing Corporations
An insurance company operating under this chapter is subject to the Texas Business Corporation Act, the Texas Miscellaneous Corporation Laws Act (Article 1302-1.01 et seq.,...
SUBCHAPTER B FORMATION AND STRUCTURE OF DOMESTIC COMPANIES
- Texas Section 841.004 - Net Assets Defined; Rules
(a) A company's "net assets" consist of the company's funds that are available for the payment of a company's obligations in this state, including: (1)...
- Texas Section 841.051 - Formation Of Company
(a) Three or more residents of this state may form: (1) a life insurance company; (2) an accident insurance company; (3) a life and accident...
- Texas Section 841.052 - Articles Of Incorporation
(a) Articles of incorporation of a proposed domestic insurance company must state: (1) the name of the company; (2) the location of the company's home...
- Texas Section 841.053 - Company Name
(a) The name of a domestic insurance company must contain the words "Insurance Company." (b) A domestic insurance company's name may not be so similar...
- Texas Section 841.054 - Capital Stock And Surplus Requirements
(a) A domestic insurance company must have capital stock in an amount of at least $700,000 and surplus in an amount of at least $700,000....
- Texas Section 841.055 - Shares Of Stock
(a) The shares of stock of an insurance company operating under this chapter may be divided or converted into shares of stock with a par...
- Texas Section 841.056 - Requirements For Shares Of Stock With Par Value
(a) The shares of stock of an insurance company operating under this chapter that are divided or converted into par value shares, if any, must...
- Texas Section 841.057 - Requirements For Shares Of Stock Without Par Value
(a) The shares of stock of an insurance company operating under this chapter that are divided or converted into shares without par value, if any,...
- Texas Section 841.058 - Application For Charter
(a) To obtain a charter for a domestic insurance company, the incorporators must pay to the department the charter fee in an amount determined under...
- Texas Section 841.059 - Action By Commissioner And Department After Filing
(a) After the charter fee is paid and all items required for a charter under Section 841.058 are filed with the department, the department shall...
- Texas Section 841.061 - Action On Application
(a) In considering the application, the commissioner shall determine if: (1) the minimum capital and surplus required by Section 841.054 are the bona fide property...
- Texas Section 841.062 - Beginning Of Corporate Existence
On receipt of the certified copy of documents under Section 841.061(c), the domestic insurance company becomes a body politic and corporate, and the incorporators may...
SUBCHAPTER C AUTHORITY TO ENGAGE IN BUSINESS
- Texas Section 841.063 - Organization Meeting
(a) After receipt of the certified copy of documents under Section 841.061(c), the incorporators shall promptly call a meeting of the domestic insurance company's shareholders....
- Texas Section 841.101 - Certificate Of Authority Required
A domestic insurance company may not engage in the business of insurance in this state, except for the lending of money, without first obtaining from...
- Texas Section 841.102 - Schedule Of Assets
Two or more officers of the domestic insurance company shall execute and file with the department: (1) a sworn schedule of each of the assets...
- Texas Section 841.103 - Issuance Of Certificate Of Authority
(a) If the commissioner makes a determination favorable to the applicants on all issues under Section 841.061(a), the commissioner, on compliance with the requirements of...
SUBCHAPTER D MANAGEMENT OF COMPANY
- Texas Section 841.104 - Tax Payment Required For Issuance Of Certain Certificates Of Authority
(a) This section applies to a life insurance company that: (1) has previously held a certificate of authority to engage in the business of life...
- Texas Section 841.151 - Conducting Shareholders' Meeting
(a) At a meeting of a domestic insurance company's shareholders, each shareholder is entitled to one vote for each fully paid up share of stock...
- Texas Section 841.152 - Board Of Directors
(a) Subject to the bylaws of the domestic insurance company, as adopted or amended by the shareholders or directors, the board of directors has full...
- Texas Section 841.153 - Election Of Directors
(a) After a domestic insurance company completes the organization of the company under Section 841.063, the company shall hold an annual meeting of the company's...
- Texas Section 841.154 - Staggered Terms For Large Board Of Directors
(a) This section applies only to a domestic insurance company whose board of directors consists of at least nine members. (b) The bylaws of a...
- Texas Section 841.155 - Officers
(a) A domestic insurance company's directors shall choose one of the directors to serve as the company's president. (b) Other officers of the domestic insurance...
SUBCHAPTER E CAPITAL AND SURPLUS
- Texas Section 841.156 - Amendment Of Charter Or Articles
(a) The shareholders of a domestic insurance company by resolution may amend the company's charter or articles of incorporation at any shareholders' meeting. (b) The...
- Texas Section 841.201 - Form Of Required Capital And Surplus
Notwithstanding any other provision of this code, after a charter is granted under this chapter, the domestic insurance company: (1) shall maintain the company's minimum...
- Texas Section 841.202 - Authorized Shares
(a) At any shareholders' meeting, shareholders of a domestic insurance company whose cumulative stock ownership represents a majority of the capital stock of the company...
- Texas Section 841.203 - Company's Repurchase Of Stock
(a) A legal reserve life insurance company may purchase in the name of the company outstanding shares of the company's capital stock as provided by...
- Texas Section 841.204 - Exemption From Required Increase Of Capital And Surplus
(a) Except as otherwise provided by this chapter, a domestic insurance company that after September 1, 1991, had less than the minimum amount of capital...
- Texas Section 841.205 - Commissioner May Require Larger Capital And Surplus Amounts
(a) The commissioner by rule or guideline may require a domestic insurance company that writes or assumes a life insurance or annuity contract or assumes...
- Texas Section 841.206 - Impairment Of Capital And Surplus
(a) An insurance company incorporated or authorized to do the lines of business authorized in this chapter may not have: (1) the company's required capital...
SUBCHAPTER F GENERAL POWERS, DUTIES, AND LIMITATIONS
- Texas Section 841.207 - Actions Of Commissioner When Capital And Surplus Requirements Not Satisfied
If an insurance company does not comply with the capital and surplus requirements of this chapter, the commissioner may order the insurance company to cease...
- Texas Section 841.251 - Evidence Of Expenditures
(a) A domestic insurance company may not make an expenditure of $100 or more unless the expenditure is evidenced by a voucher that: (1) is...
- Texas Section 841.252 - Payments To Officers, Directors, And Employees
(a) Unless first authorized by a vote of a domestic insurance company's board of directors or a committee of the board that has the duty...
- Texas Section 841.253 - Life Insurance Company's Payment Of Dividends
(a) A life insurance company may declare or pay a dividend to its: (1) policyholders only from the expense loading and profits made by the...
- Texas Section 841.254 - Transfer Of Stock
(a) A domestic insurance company's shares of stock are transferrable on the company's books, in accordance with law and the bylaws of the company, by...
- Texas Section 841.255 - Annual Statement; Filing Fee
(a) Not later than March 1 of each year, a domestic insurance company shall: (1) prepare a statement showing the condition of the company on...
- Texas Section 841.256 - Business In Separate Departments Of Domestic Insurance Company
A domestic insurance company may not transact more than one of the kinds of insurance business described by Section 841.051(a) unless the company establishes separate...
- Texas Section 841.257 - Kinds Of Business Limited
An insurance company authorized to engage in the business of insurance under this chapter or in accordance with Section 982.051 may not accept a risk...
- Texas Section 841.258 - Agents For Company That Ceases Writing New Business
An insurance company that ceases to write new business in this state may maintain in this state agents to collect renewal premiums on outstanding policies...
- Texas Section 841.259 - Activities Of Directors And Officers
(a) A director or officer of an insurance company may not: (1) receive money or another valuable thing for negotiating, procuring, recommending, or aiding in...
- Texas Section 841.260 - Prohibited Commissions
(a) In this section, "contingent compensation" means a commission or other compensation an insurance company pays to a person that is contingent on: (1) the...
SUBCHAPTER G ISSUANCE OF POLICIES
- Texas Section 841.261 - Causes Of Action
(a) A domestic insurance company may bring an action against any person, including a policyholder or shareholder of the company, for any cause related to...
- Texas Section 841.301 - Limits On Amount Of Accident And Health Insurance Policies
(a) A domestic insurance company may not assume liability on or indemnify one person for any risk under one or more accident, health, or hospitalization...
- Texas Section 841.302 - Limits On Life Or Accidental Death Insurance
(a) Until the amount of the capital and surplus of a domestic insurance company is at least $100,000, the company may not insure any one...
SUBCHAPTER H DEPOSIT OF SECURITIES
- Texas Section 841.303 - Entire Contract
Each policy of insurance issued or delivered in this state by any life insurance company engaged in business in this state constitutes the entire contract...
- Texas Section 841.351 - Deposit With Comptroller
(a) A domestic insurance company may, at its option, deposit with the comptroller either: (1) securities in which the company's capital stock is invested; or...
- Texas Section 841.352 - Issuance Of Receipt For Deposit
When a domestic insurance company deposits securities under this subchapter, the comptroller shall issue to the company a receipt that: (1) describes the deposit in...
- Texas Section 841.353 - Advertisement Of Deposit
A domestic insurance company that makes a deposit under this subchapter may: (1) advertise the fact that a deposit has been made; or (2) print...
- Texas Section 841.354 - Access To Deposit
In accordance with reasonable rules adopted by the comptroller and the commissioner, the proper officer or agent of a domestic insurance company making a deposit...
- Texas Section 841.355 - Withdrawal Of Deposit After Merger, Consolidation, Or Total Reinsurance
(a) When two or more domestic insurance companies that have two or more deposits of securities under this subchapter merge, consolidate, or enter into a...
- Texas Section 841.356 - Situs Of Deposit For Tax Purposes
For purposes of state, county, or municipal taxation, the situs of deposited securities is the municipality and county in which the depositing company's home office...
SUBCHAPTER I LIMITED PURPOSE SUBSIDIARY LIFE INSURANCE COMPANIES
- Texas Section 841.357 - Maintenance Of Deposit
A domestic insurance company must maintain a deposit of securities under this subchapter as long as the company has outstanding any liability to a policyholder...
- Texas Section 841.401 - Purpose
The purpose of this subchapter is to authorize the establishment of domestic limited purpose subsidiary life insurance companies to enable those companies to support excess...
- Texas Section 841.402 - Definitions
In this subchapter: (1) "Affiliated company" means: (A) domestic life insurance companies that are directly or indirectly wholly owned subsidiaries of the same holding company;...
- Texas Section 841.403 - Organizational Documents
(a) A wholly owned domestic insurer authorized to transact the business of insurance under this chapter or an affiliated company organized or authorized to conduct...
- Texas Section 841.404 - Certificate Of Authority Required
A limited purpose subsidiary life insurance company may not engage in the business of reinsurance in this state unless the limited purpose subsidiary life insurance...
- Texas Section 841.405 - Application For Certificate Of Authority
To obtain a charter for a limited purpose subsidiary life insurance company, the incorporators of the company shall pay to the department a charter fee...
- Texas Section 841.406 - Investment Of Certain Surplus By Organizing Company
If the company that organizes a limited purpose subsidiary life insurance company is a domestic life insurance company, the organizing company may invest funds from...
- Texas Section 841.407 - Officers And Directors
The officers and directors of a company that organizes a limited purpose subsidiary life insurance company may serve as officers and directors of the limited...
- Texas Section 841.408 - Issuance Of Certificate Of Authority
(a) The commissioner may issue a certificate of authority to a limited purpose subsidiary life insurance company, authorizing the company to transact reinsurance business in...
- Texas Section 841.409 - Scope Of Certificate Of Authority
(a) A limited purpose subsidiary life insurance company that has been issued a certificate of authority may reinsure only the risks of a ceding insurer....
- Texas Section 841.410 - Capital And Surplus
(a) The commissioner may not issue a certificate of authority to a limited purpose subsidiary life insurance company unless the company possesses and maintains unimpaired...
- Texas Section 841.411 - Foreclosure On Collateral
A limited purpose subsidiary life insurance company shall immediately notify the commissioner of any action by a ceding insurer or any other person to foreclose...
- Texas Section 841.412 - Minimum Authorized Investment Requirement After Credit For Reinsurance; Letters Of Credit; Guaranties
(a) A limited purpose subsidiary life insurance company shall hold investments authorized under Subchapters C and D, Chapter 425, exclusive of investments in affiliates, in...
- Texas Section 841.413 - Permitted Reinsurance
(a) A limited purpose subsidiary life insurance company may only reinsure the risks of a ceding insurer under a reinsurance contract. (b) Unless otherwise approved...
- Texas Section 841.414 - Reports On Reserves And Risk-based Capital
(a) A limited purpose subsidiary life insurance company annually shall file an opinion of the appointed actuary acceptable to the commissioner concerning the methods and...
- Texas Section 841.415 - Other Laws Not Applicable
The deposit requirements in Subchapter H do not apply to a limited purpose subsidiary life insurance company. Added by Acts 2011, 82nd Leg., R.S., Ch....
- Texas Section 841.416 - Applicability Of Other Law
Except as specifically provided by law, all provisions of this code apply to a limited purpose subsidiary life insurance company formed under this subchapter. Added...
- Texas Section 841.417 - Guaranty Requirements
(a) A guaranty may not be used to comply with this chapter without the prior written approval of the commissioner. (b) Before approving a guaranty,...
- Texas Section 841.418 - Sunset Provision
This subchapter is valid for business sold only until January 1 of the year in which principle-based reserve requirements become operative in Texas under the...
- Texas Section 841.419 - Certification Of Actuarial Officer
(a) At the time a limited purpose subsidiary life insurance company files an application for a certificate of authority under this subchapter, and not later...
SUBCHAPTER O ENFORCEMENT AND INTERVENTION
- Texas Section 841.420 - Accounting And Financial Reporting
The commissioner shall prescribe accounting and financial reporting requirements with regard to the limited purpose subsidiary life insurance company and any insurer as defined by...
- Texas Section 841.701 - Revocation Of Certificate Of Authority
(a) If the commissioner determines that an insurance company that holds a certificate of authority does not comply with this chapter or another law described...
- Texas Section 841.702 - Appeal Of Determination To Revoke Certificate
An insurance company aggrieved by an order of the commissioner to revoke the company's certificate of authority under Section 841.701 may file suit in a...
- Texas Section 841.703 - Certificate Of Authority Void On Failure To Satisfy Judgment
(a) If an officer holding an execution issued on a final judgment rendered against an insurance company demands payment of the judgment from an officer...
- Texas Section 841.704 - False Statement, Report, Or Other Document; Criminal Penalty
(a) A person commits an offense if the person executes or causes to be executed a statement, report, or other document required by law to...
- Texas Section 841.705 - Penalty For Failure To Invest Or Report
(a) In addition to the penalty provided by this subchapter, an insurance company is subject to a penalty as prescribed by Subsection (b) if, while...