State Codes and Statutes

Statutes > Texas > Insurance-code > Title-4-regulation-of-solvency > Chapter-481-voluntary-deposits

INSURANCE CODE

TITLE 4. REGULATION OF SOLVENCY

SUBTITLE E. REQUIREMENTS OF OTHER JURISDICTIONS

CHAPTER 481. VOLUNTARY DEPOSITS

Sec. 481.001. DEPOSIT WITH COMPTROLLER. (a) An insurer

organized and engaged in business under this code that is

required by another state, country, or province as a condition of

engaging in an insurance business in that state, country, or

province to make or maintain a deposit with an officer of any

state, country, or province may, at the insurer's discretion,

voluntarily deposit with the comptroller cash or securities in an

amount that is sufficient to satisfy the conditions of the other

state, country, or province.

(b) Any securities deposited must be approved by the

commissioner as being of a type and character in which the

insurer is authorized by law to invest.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.002. APPLICABILITY OF CHAPTER TO CERTAIN DEPOSITS. A

voluntary deposit held by the comptroller or the department that

was made by an insurer in this state before May 8, 1959, to gain

admission to another state may, at the insurer's option, be

considered to be held under this chapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.003. DUTIES OF COMPTROLLER. The comptroller shall

receive a deposit made by an insurer as described by this chapter

and hold it exclusively for the protection of all policyholders

or creditors of the insurer, wherever they are located, or for

the protection of the insurer's policyholders or creditors in a

particular state, country, or province, as designated by the

insurer at the time the insurer makes the deposit.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.004. ACCESS TO DEPOSIT. In accordance with reasonable

rules adopted by the comptroller and the commissioner, the proper

officer of an insurer making a deposit as described by this

chapter may at a reasonable time:

(1) examine the deposit;

(2) detach coupons from the securities; and

(3) collect interest on the deposit.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.005. 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 principal

business office of the insurer making the deposit is fixed by the

insurer's charter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.006. WITHDRAWAL OF DEPOSIT. (a) An insurer that makes

a deposit as described by this chapter may, at the insurer's

option, withdraw all or part of the deposit if:

(1) the insurer first deposits with the comptroller other

securities of like class as, and of an amount and value equal to,

the securities proposed to be withdrawn; and

(2) the withdrawal and substitution are approved by the

commissioner.

(b) An insurer, without making a substitute deposit under

Subsection (a), may not withdraw all or part of a deposit made as

described by this chapter for the protection of the insurer's

policyholders or creditors in a particular state, country, or

province that requires the deposit unless:

(1) the insurer files with the commissioner evidence that

satisfies the commissioner that the insurer has withdrawn from

business and does not have any unsecured liabilities outstanding

or potential policyholder liabilities or obligations in the other

state, country, or province; and

(2) the commissioner approves the withdrawal.

(c) An insurer, without making a substitute deposit under

Subsection (a), may not withdraw all or part of a deposit made as

described by this chapter for the protection of all of the

insurer's policyholders or creditors, wherever they are located,

unless:

(1) the insurer files with the commissioner evidence that

satisfies the commissioner that the insurer does not have any

unsecured liabilities outstanding or potential policy liabilities

or obligations anywhere; and

(2) the commissioner approves the withdrawal.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.007. WITHDRAWAL OF DEPOSIT AFTER MERGER, CONSOLIDATION,

OR TOTAL REINSURANCE. When two or more insurers that have two or

more deposits made for identical purposes as described by this

chapter or former Article 4739, Revised Statutes, merge,

consolidate, or enter into a total reinsurance contract by which

the ceding insurer is dissolved and the ceding insurer's assets

and liabilities are acquired or assumed by the surviving insurer,

the new, surviving, or reinsuring insurer may withdraw all of the

deposits, except for the deposit of the greatest amount and

value. The new, surviving, or reinsuring insurer must

demonstrate that the deposits are duplicated and that the insurer

is the owner of the deposits.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.008. RETURN OF DEPOSIT. An insurer that has made a

deposit as described by this chapter or former Article 4739,

Revised Statutes, is entitled to a return of the deposit if the

insurer applies for the return of the deposit and demonstrates to

the commissioner that the deposit is no longer required under the

laws of any state, country, or province in which the insurer

sought or gained admission to engage in business based on a

certificate of the deposit.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.009. DELIVERY OF DEPOSIT BY COMPTROLLER. On being

provided a certified copy of the commissioner's order issued

under Section 481.007 or 481.008, the comptroller shall release,

transfer, and deliver the deposit to the owner of the deposit in

accordance with the order.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-4-regulation-of-solvency > Chapter-481-voluntary-deposits

INSURANCE CODE

TITLE 4. REGULATION OF SOLVENCY

SUBTITLE E. REQUIREMENTS OF OTHER JURISDICTIONS

CHAPTER 481. VOLUNTARY DEPOSITS

Sec. 481.001. DEPOSIT WITH COMPTROLLER. (a) An insurer

organized and engaged in business under this code that is

required by another state, country, or province as a condition of

engaging in an insurance business in that state, country, or

province to make or maintain a deposit with an officer of any

state, country, or province may, at the insurer's discretion,

voluntarily deposit with the comptroller cash or securities in an

amount that is sufficient to satisfy the conditions of the other

state, country, or province.

(b) Any securities deposited must be approved by the

commissioner as being of a type and character in which the

insurer is authorized by law to invest.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.002. APPLICABILITY OF CHAPTER TO CERTAIN DEPOSITS. A

voluntary deposit held by the comptroller or the department that

was made by an insurer in this state before May 8, 1959, to gain

admission to another state may, at the insurer's option, be

considered to be held under this chapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.003. DUTIES OF COMPTROLLER. The comptroller shall

receive a deposit made by an insurer as described by this chapter

and hold it exclusively for the protection of all policyholders

or creditors of the insurer, wherever they are located, or for

the protection of the insurer's policyholders or creditors in a

particular state, country, or province, as designated by the

insurer at the time the insurer makes the deposit.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.004. ACCESS TO DEPOSIT. In accordance with reasonable

rules adopted by the comptroller and the commissioner, the proper

officer of an insurer making a deposit as described by this

chapter may at a reasonable time:

(1) examine the deposit;

(2) detach coupons from the securities; and

(3) collect interest on the deposit.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.005. 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 principal

business office of the insurer making the deposit is fixed by the

insurer's charter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.006. WITHDRAWAL OF DEPOSIT. (a) An insurer that makes

a deposit as described by this chapter may, at the insurer's

option, withdraw all or part of the deposit if:

(1) the insurer first deposits with the comptroller other

securities of like class as, and of an amount and value equal to,

the securities proposed to be withdrawn; and

(2) the withdrawal and substitution are approved by the

commissioner.

(b) An insurer, without making a substitute deposit under

Subsection (a), may not withdraw all or part of a deposit made as

described by this chapter for the protection of the insurer's

policyholders or creditors in a particular state, country, or

province that requires the deposit unless:

(1) the insurer files with the commissioner evidence that

satisfies the commissioner that the insurer has withdrawn from

business and does not have any unsecured liabilities outstanding

or potential policyholder liabilities or obligations in the other

state, country, or province; and

(2) the commissioner approves the withdrawal.

(c) An insurer, without making a substitute deposit under

Subsection (a), may not withdraw all or part of a deposit made as

described by this chapter for the protection of all of the

insurer's policyholders or creditors, wherever they are located,

unless:

(1) the insurer files with the commissioner evidence that

satisfies the commissioner that the insurer does not have any

unsecured liabilities outstanding or potential policy liabilities

or obligations anywhere; and

(2) the commissioner approves the withdrawal.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.007. WITHDRAWAL OF DEPOSIT AFTER MERGER, CONSOLIDATION,

OR TOTAL REINSURANCE. When two or more insurers that have two or

more deposits made for identical purposes as described by this

chapter or former Article 4739, Revised Statutes, merge,

consolidate, or enter into a total reinsurance contract by which

the ceding insurer is dissolved and the ceding insurer's assets

and liabilities are acquired or assumed by the surviving insurer,

the new, surviving, or reinsuring insurer may withdraw all of the

deposits, except for the deposit of the greatest amount and

value. The new, surviving, or reinsuring insurer must

demonstrate that the deposits are duplicated and that the insurer

is the owner of the deposits.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.008. RETURN OF DEPOSIT. An insurer that has made a

deposit as described by this chapter or former Article 4739,

Revised Statutes, is entitled to a return of the deposit if the

insurer applies for the return of the deposit and demonstrates to

the commissioner that the deposit is no longer required under the

laws of any state, country, or province in which the insurer

sought or gained admission to engage in business based on a

certificate of the deposit.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.009. DELIVERY OF DEPOSIT BY COMPTROLLER. On being

provided a certified copy of the commissioner's order issued

under Section 481.007 or 481.008, the comptroller shall release,

transfer, and deliver the deposit to the owner of the deposit in

accordance with the order.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-4-regulation-of-solvency > Chapter-481-voluntary-deposits

INSURANCE CODE

TITLE 4. REGULATION OF SOLVENCY

SUBTITLE E. REQUIREMENTS OF OTHER JURISDICTIONS

CHAPTER 481. VOLUNTARY DEPOSITS

Sec. 481.001. DEPOSIT WITH COMPTROLLER. (a) An insurer

organized and engaged in business under this code that is

required by another state, country, or province as a condition of

engaging in an insurance business in that state, country, or

province to make or maintain a deposit with an officer of any

state, country, or province may, at the insurer's discretion,

voluntarily deposit with the comptroller cash or securities in an

amount that is sufficient to satisfy the conditions of the other

state, country, or province.

(b) Any securities deposited must be approved by the

commissioner as being of a type and character in which the

insurer is authorized by law to invest.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.002. APPLICABILITY OF CHAPTER TO CERTAIN DEPOSITS. A

voluntary deposit held by the comptroller or the department that

was made by an insurer in this state before May 8, 1959, to gain

admission to another state may, at the insurer's option, be

considered to be held under this chapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.003. DUTIES OF COMPTROLLER. The comptroller shall

receive a deposit made by an insurer as described by this chapter

and hold it exclusively for the protection of all policyholders

or creditors of the insurer, wherever they are located, or for

the protection of the insurer's policyholders or creditors in a

particular state, country, or province, as designated by the

insurer at the time the insurer makes the deposit.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.004. ACCESS TO DEPOSIT. In accordance with reasonable

rules adopted by the comptroller and the commissioner, the proper

officer of an insurer making a deposit as described by this

chapter may at a reasonable time:

(1) examine the deposit;

(2) detach coupons from the securities; and

(3) collect interest on the deposit.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.005. 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 principal

business office of the insurer making the deposit is fixed by the

insurer's charter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.006. WITHDRAWAL OF DEPOSIT. (a) An insurer that makes

a deposit as described by this chapter may, at the insurer's

option, withdraw all or part of the deposit if:

(1) the insurer first deposits with the comptroller other

securities of like class as, and of an amount and value equal to,

the securities proposed to be withdrawn; and

(2) the withdrawal and substitution are approved by the

commissioner.

(b) An insurer, without making a substitute deposit under

Subsection (a), may not withdraw all or part of a deposit made as

described by this chapter for the protection of the insurer's

policyholders or creditors in a particular state, country, or

province that requires the deposit unless:

(1) the insurer files with the commissioner evidence that

satisfies the commissioner that the insurer has withdrawn from

business and does not have any unsecured liabilities outstanding

or potential policyholder liabilities or obligations in the other

state, country, or province; and

(2) the commissioner approves the withdrawal.

(c) An insurer, without making a substitute deposit under

Subsection (a), may not withdraw all or part of a deposit made as

described by this chapter for the protection of all of the

insurer's policyholders or creditors, wherever they are located,

unless:

(1) the insurer files with the commissioner evidence that

satisfies the commissioner that the insurer does not have any

unsecured liabilities outstanding or potential policy liabilities

or obligations anywhere; and

(2) the commissioner approves the withdrawal.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.007. WITHDRAWAL OF DEPOSIT AFTER MERGER, CONSOLIDATION,

OR TOTAL REINSURANCE. When two or more insurers that have two or

more deposits made for identical purposes as described by this

chapter or former Article 4739, Revised Statutes, merge,

consolidate, or enter into a total reinsurance contract by which

the ceding insurer is dissolved and the ceding insurer's assets

and liabilities are acquired or assumed by the surviving insurer,

the new, surviving, or reinsuring insurer may withdraw all of the

deposits, except for the deposit of the greatest amount and

value. The new, surviving, or reinsuring insurer must

demonstrate that the deposits are duplicated and that the insurer

is the owner of the deposits.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.008. RETURN OF DEPOSIT. An insurer that has made a

deposit as described by this chapter or former Article 4739,

Revised Statutes, is entitled to a return of the deposit if the

insurer applies for the return of the deposit and demonstrates to

the commissioner that the deposit is no longer required under the

laws of any state, country, or province in which the insurer

sought or gained admission to engage in business based on a

certificate of the deposit.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.

Sec. 481.009. DELIVERY OF DEPOSIT BY COMPTROLLER. On being

provided a certified copy of the commissioner's order issued

under Section 481.007 or 481.008, the comptroller shall release,

transfer, and deliver the deposit to the owner of the deposit in

accordance with the order.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 1, eff. April 1, 2007.