CHAPTER 982. FOREIGN AND ALIEN INSURANCE COMPANIES

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-6-organization-of-insurers-and-related-entities > Chapter-982-foreign-and-alien-insurance-companies

INSURANCE CODE

TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES

SUBTITLE I. COMPANIES THAT ARE NOT ORGANIZED IN TEXAS

CHAPTER 982. FOREIGN AND ALIEN INSURANCE COMPANIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 982.001. DEFINITIONS. In this chapter:

(1) "Accident insurance company," "health insurance company,"

"life insurance company," and "United States branch" have the

meanings assigned by Section 841.001.

(2) "Alien insurance company" means an insurance company

organized under the laws of a foreign country. The term includes

an unincorporated insurance company (other than an unincorporated

life insurance company, accident insurance company, life and

accident insurance company, health and accident insurance

company, or life, health, and accident insurance company) that is

organized under the laws of a foreign country in a form

recognized by the department.

(3) "Domestic insurance company" has, in the context of a life

insurance company, accident insurance company, life and accident

insurance company, health and accident insurance company, or

life, health, and accident insurance company, the meaning

assigned by Section 841.001.

(4) "Foreign insurance company" means an insurance company

organized under the laws of another state of the United States.

(5) "Insurance company" means a company engaged as a principal

in the business of insurance.

(6) "Policyholder" has, in the context of a life insurance

company, accident insurance company, life and accident insurance

company, health and accident insurance company, or life, health,

and accident insurance company, the meaning assigned by Section

841.001.

(7) "Trusteed asset" means an asset that an authorized alien

insurance company is required or permitted by this chapter to

deposit with one or more trustees for the security of the

company's policyholders in the United States.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.002. APPLICABILITY OF CHAPTER. This chapter applies to

any insurance company that is organized under the laws of another

state or country and that wants to engage in or is engaging in

the business of insurance in this state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.003. LIFE INSURANCE COMPANIES WANTING TO LOAN MONEY. A

life insurance company that wants to loan money in this state but

does not want to engage in the business of life insurance in this

state may obtain from the secretary of state a permit to loan

money by complying with the laws of this state relating to

foreign corporations engaged in loaning money in this state

without having to obtain a certificate of authority to engage in

the business of life insurance in this state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.004. FINANCIAL STATEMENTS OF FOREIGN OR ALIEN INSURANCE

COMPANIES. (a) Each foreign insurance company shall file with

the department a statement in the form required by Section

982.101 or 982.102 not later than March 1 of each year.

(b) Each authorized alien insurance company shall file with the

department a financial statement in the form required by Section

982.252 not later than March 1 of each year.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

SUBCHAPTER B. AUTHORITY TO ENGAGE IN BUSINESS

Sec. 982.051. CERTIFICATE OF AUTHORITY REQUIRED FOR LIFE,

HEALTH, OR ACCIDENT COMPANIES. A foreign insurance company may

not engage in the business of insurance as a life insurance

company, accident insurance company, life and accident insurance

company, health and accident insurance company, or life, health,

and accident insurance company in this state, except for the

lending of money, without first obtaining from the department a

certificate of authority that:

(1) shows that the foreign insurance company has fully complied

with the laws of this state; and

(2) authorizes the foreign insurance company to engage in the

business of insurance in this state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.052. CERTIFICATE OF AUTHORITY REQUIRED FOR OTHER

COMPANIES. Except as provided by Chapter 101 or 981, a foreign

or alien insurance company, other than a life insurance company,

accident insurance company, life and accident insurance company,

or life, health, and accident insurance company, may not engage

in this state in the business of insuring others against losses

without first obtaining from the department a certificate of

authority that authorizes the company to engage in that business.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

SUBCHAPTER C. REQUIREMENTS FOR CERTIFICATE OF AUTHORITY

Sec. 982.101. FILING OF FINANCIAL STATEMENT BY LIFE, HEALTH, OR

ACCIDENT INSURANCE COMPANY. A foreign or alien life insurance

company, accident insurance company, life and accident insurance

company, health and accident insurance company, or life, health,

and accident insurance company that wants to engage in the

business of insurance in this state shall provide to the

department a written or printed statement, under the oath of the

president or vice president or under the oath of the treasurer

and secretary of the company, that shows:

(1) the company's name and location;

(2) the amount of the company's capital stock;

(3) the amount of the company's paid up capital stock;

(4) the company's assets, including in the following order:

(A) the amount of cash on hand;

(B) the amount of cash held by other persons and the names and

residences of those persons;

(D) bonds the company owns, the manner in which the bonds are

secured, and the rate of interest on the bonds;

(E) debts due the company that are secured by mortgage, a

description of the mortgaged property, and the property's market

value;

(F) debts due the company that are secured other than by

mortgage and a statement of how they are secured;

(G) debts due the company for premiums; and

(H) all other money and securities;

(5) the amount of the company's liabilities and the name of the

person or corporation to whom each liability is owed;

(6) losses adjusted and due;

(7) losses adjusted and not due;

(8) losses adjusted;

(9) losses in suspense and the reason for the suspension;

(10) all other claims against the company and a description of

each claim; and

(11) any additional facts required by the department to be

shown.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.102. FILING OF FINANCIAL STATEMENT BY OTHER INSURANCE

COMPANY; EXAMINATION. (a) This section applies only to a

foreign or alien insurance company, other than a life insurance

company, accident insurance company, life and accident insurance

company, health and accident insurance company, or life, health,

and accident insurance company.

(b) A foreign or alien insurance company that wants to engage in

the business of insurance in this state shall provide to the

department copies of its annual financial statements for the two

most recent years. The copies must be certified by the

commissioner or other insurance supervising official of the state

or country in which the company is organized and incorporated.

The department may require that the statement show additional

facts as requested by the department.

alien insurance company for a certificate of authority to engage

in the business of insurance in this state, the commissioner

shall:

(1) examine the company, at the company's expense, at its

principal office in the United States; or

(2) accept a report of an examination made by the insurance

department or other insurance supervisory official of another

state or government of a foreign country.

(d) On the applicant's request, the commissioner shall hold a

hearing on a denial. Not later than the 30th day after the date

of the applicant's request for a hearing, the commissioner shall

request a hearing date.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1022, Sec. 17, eff. June 19, 2009.

Sec. 982.103. FILING OF FINANCIAL STATEMENT BY ALIEN INSURANCE

COMPANY. An alien insurance company that wants to engage in the

business of insurance in this state shall file a financial

statement as provided by Section 982.252.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.104. FILING OF ARTICLES OF INCORPORATION. (a) A

foreign or alien insurance company shall file with the statement

required by Section 982.101 or 982.102:

(1) a copy of the company's acts or articles of incorporation

and any amendments to those acts or articles; and

(2) a copy of the company's bylaws and a statement of the name

and residence of each of the company's officers and directors.

(b) The president or the secretary of the company shall certify

the documents filed under Subsection (a).

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.105. CAPITAL STOCK AND SURPLUS REQUIREMENTS FOR LIFE,

HEALTH, OR ACCIDENT INSURANCE COMPANIES. (a) A foreign or alien

life insurance company, accident insurance company, life and

accident insurance company, health and accident insurance

company, or life, health, and accident insurance company is

subject to Sections 841.054, 841.201, 841.204, 841.205, 841.207,

841.301, and 841.302. The department may not issue a certificate

of authority to a foreign or alien stock insurance company, and

the company may not engage in any business of life, health, or

accident insurance in this state, unless the company possesses at

least the minimum capital and surplus required for a similar

domestic insurance company organized under Chapter 841 in similar

circumstances. The minimum capital and surplus must be invested

in the same character of investments as required for a domestic

insurance company.

(b) The department may not issue a certificate of authority to a

foreign or alien mutual insurance company, and the company may

not engage in the business of life insurance in this state,

unless the company possesses at least the minimum unencumbered

surplus required by Chapter 882 for a similar domestic company in

similar circumstances. The minimum unencumbered surplus must be

invested in the same character of investments as required for a

domestic insurance company.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.106. CAPITAL STOCK AND SURPLUS REQUIREMENTS FOR OTHER

INSURANCE COMPANIES. (a) This section applies only to a foreign

or alien insurance company other than a life insurance company,

accident insurance company, life and accident insurance company,

health and accident insurance company, or life, health, and

accident insurance company.

(b) A foreign or alien insurance company is subject to Sections

822.203, 822.205, 822.210, and 822.212. The department may not

authorize a foreign or alien insurance company to engage in the

business of insurance in this state unless the company has and

maintains the minimum capital and surplus amounts as required by

this code for companies organized under this code and engaging in

the same kinds of business.

alien insurance company to engage in the business of insurance in

this state because all of the company's capital stock has not

been fully subscribed and paid for, if:

(1) at least the minimum dollar amount of capital stock of the

company required by the laws of this state, which may be less

than all of the company's authorized capital stock, has been

subscribed and paid for; and

(2) the company:

(A) has at least the minimum dollar amount of surplus required

by the laws of this state for the kinds of business the company

seeks to write; and

(B) has fully complied with the laws of the company's

domiciliary state or country relating to authorization and

issuance of capital stock.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.107. APPLICABILITY OF OTHER LAW. Chapter 402 applies

to a foreign or alien insurance company.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2E.136, eff. April 1, 2009.

Sec. 982.108. DEPOSIT REQUIREMENTS FOR ALIEN INSURANCE COMPANY.

An alien insurance company may not engage in the business of

insurance in this state without first depositing with the

comptroller, for the benefit of the company's policyholders who

are citizens or residents of the United States, bonds or

securities of the United States or this state in an amount at

least equal to:

(1) the minimum capital required to be maintained by a domestic

stock insurer authorized to engage in the same kind of insurance;

(2) one-half the minimum unencumbered surplus required to be

maintained by a domestic mutual insurer authorized to engage in

the same kind of insurance.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.109. DURATION OF DEPOSIT BY LIFE, HEALTH, OR ACCIDENT

INSURANCE COMPANIES. An alien life insurance company, accident

insurance company, life and accident insurance company, health

and accident insurance company, or life, health, and accident

insurance company shall maintain the deposit required by Section

982.108 for the period that the company has any outstanding

liability arising from its insurance transactions in the United

States. The deposit is liable to pay the judgments, as decreed by

courts, of the company's policyholders in the United States.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.110. DURATION OF DEPOSIT FOR OTHER INSURANCE COMPANIES.

An alien insurance company, other than an alien life insurance

company, accident insurance company, life and accident insurance

company, health and accident insurance company, or life, health,

and accident insurance company, shall maintain the deposit

required by Section 982.108 for the period that the company has

any outstanding liability arising from its insurance transactions

in the United States. The deposit is for the exclusive benefit,

security, and protection of the company's policyholders in the

United States.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.111. EXCEPTION TO DEPOSIT REQUIREMENT: TRUSTEED ASSETS.

(a) On approval by the commissioner as provided by Subchapter

D, instead of making the deposit with the comptroller under

Section 982.108, an authorized alien insurance company may

deposit bonds or securities of the United States or this state

with a trustee or trustees for the security of the company's

policyholders in the United States.

(b) An alien insurance company shall maintain the deposit

permitted by Subsection (a) as provided by Subchapter D.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.112. EXCEPTION TO DEPOSIT REQUIREMENT: DEPOSIT WITH

OFFICER IN ANOTHER STATE. (a) The deposit required under

Section 982.108 is not required in this state if the deposit

required by that section has been made in any state of the United

States, under the laws of that state, in a manner that secures

equally the policyholders of the company who are citizens and

residents of the United States.

(b) An alien insurance company that desires to meet the

requirements of Section 982.108 as provided by Subsection (a)

shall file with the department a certificate of the deposit. The

certificate must be signed by and under the seal of the officer

of the state with whom the deposit was made.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.113. ISSUANCE OF CERTIFICATE OF AUTHORITY TO LIFE,

HEALTH, OR ACCIDENT INSURANCE COMPANY. (a) The commissioner

shall file in the commissioner's office the documents delivered

to the department under this subchapter and shall approve or deny

an application for a certificate of authority.

(b) The commissioner shall issue to a foreign or alien life

insurance company, accident insurance company, life and accident

insurance company, health and accident insurance company, or

life, health, and accident insurance company a certificate of

authority to engage in this state in the kind of business

specified in the documents if:

(1) the company has complied with the requirements of this

chapter and any other requirement imposed on the company by law;

and

(2) the company's operational history demonstrates that the

expanded operation of the company in this state or its operations

outside this state will not create a condition that might be

hazardous to the company's policyholders or creditors or to the

public.

accident insurance company, life and accident insurance company,

health and accident insurance company, or life, health, and

accident insurance company under Subsection (b)(2) must be

reviewed in conjunction with:

(1) the company's loss experience;

(2) the kinds and nature of risks insured by the company;

(3) the company's financial condition and its ownership;

(4) the company's proposed method of operation;

(5) the company's affiliations;

(6) the company's investments;

(7) the company's contracts, if any, leading to contingent

liability or agreements in respect to guaranty and surety, other

than insurance; and

(8) the ratio of total annual premium and net investment income

to commission expenses, general insurance expenses, policy

benefits paid, and required policy reserve increases.

(d) On the applicant's request, the commissioner shall hold a

hearing on a denial. Not later than the 30th day after the date

of the applicant's request for a hearing, the commissioner shall

request a hearing date.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1022, Sec. 18, eff. June 19, 2009.

Sec. 982.114. PAYMENT OF TAX BY FOREIGN OR ALIEN LIFE INSURANCE

COMPANY. (a) A foreign or alien life insurance company that

obtains a certificate of authority under this subchapter on or

after April 2, 1909, accepts that certificate and agrees to

engage in the business of insurance in this state subject to a

requirement that, if the company ceases to transact new insurance

business in this state but continues to collect renewal premiums

from residents of this state, the company shall continue to pay

an occupation tax based on gross premiums for each year from

residents of this state.

(b) The rate of the tax imposed by this section may not exceed

the rate imposed by law on insurance companies transacting new

insurance business in this state.

tax and make reports relating to its gross premium receipts in

the same manner as a foreign or alien life insurance company that

is transacting new insurance business in this state.

(d) The foreign or alien life insurance company is subject to

examination by the department or by a department designee in the

same manner and to the same extent as a company that is

transacting new insurance business in this state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 19, eff. April 1,

2005.

SUBCHAPTER D. TRUSTEED ASSETS OF ALIEN INSURANCE COMPANIES

Sec. 982.201. DEED OF TRUST: GENERAL PROVISIONS. (a) A deed of

trust relating to the trusteed assets of an authorized alien

insurance company and all amendments to the deed of trust are

effective only if approved by the commissioner.

(b) The deed of trust must contain provisions that:

(1) vest legal title to trusteed assets in the trustee or

trustees and the trustees' lawfully appointed successors, in

trust for the security of the policyholders of the alien

insurance company in the United States;

(2) provide for substitution of a new trustee or trustees,

subject to the commissioner's approval, in the event of vacancy

by death, resignation, or other incapacity; and

(3) require that the trustee or trustees continuously maintain a

record sufficient to identify the trusteed assets.

dividends, or interest accumulations of the trusteed assets may

be paid over to the United States manager of the alien insurance

company on request.

(d) The deed of trust and all amendments to the deed of trust

must be authenticated in the form and manner prescribed by the

commissioner.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.202. DEED OF TRUST: APPROVAL BY COMMISSIONER. (a) The

commissioner shall approve a deed of trust relating to the

trusteed assets of an alien insurance company if the commissioner

determines:

(1) the deed of trust or its amendments are sufficient in form

and conform with applicable law;

(2) the trustee or trustees are eligible to serve in that

capacity; and

(3) the deed of trust is adequate to protect the interests of

the beneficiaries of the trust.

(b) If, after notice and hearing, the commissioner determines

that a requisite for approval of a deed of trust under Subsection

(a) does not exist, the commissioner may withdraw approval.

that in the commissioner's judgment is in the best interests of

the policyholders of the alien insurance company in the United

States.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.203. LOCATION OF TRUSTEED ASSETS. (a) The trusteed

assets of an alien insurance company shall be kept continuously

in the United States.

(b) The trusteed assets of an alien insurance company that

enters the United States through this state shall be kept

continuously in this state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.204. WITHDRAWAL OF TRUSTEED ASSETS. (a) The deed of

trust relating to the trusteed assets of an alien insurance

company must provide that the trustee or trustees may not make or

permit a withdrawal of assets, other than as specified by Section

982.201(c), without the commissioner's prior written approval

except to:

(1) make deposits required by law in any state for the security

or benefit of the policyholders of the company in the United

States;

(2) substitute other assets permitted by law and at least equal

in value to those withdrawn, subject to Subsection (b); or

(3) transfer the assets to an official liquidator or

rehabilitator in accordance with an order of a court of competent

jurisdiction.

(b) A withdrawal under Subsection (a)(2) may be made only on the

specific written direction of the United States manager or an

assistant United States manager when authorized and acting under

general or specific written authority previously given or

delegated by the board of directors.

in which the alien insurance company is authorized to engage in

the business of insurance:

(1) the deed of trust may require similar written approval of

the insurance supervising official of that state instead of the

commissioner's approval as provided by Subsection (a); and

(2) if approval under Subdivision (1) is required, the company

shall notify the commissioner in writing of the nature and extent

of the withdrawal.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

SUBCHAPTER E. TRUSTEED SURPLUS OF ALIEN INSURANCE COMPANIES

Sec. 982.251. TRUSTEED SURPLUS OF ALIEN INSURANCE COMPANY. The

total value of an alien insurance company's general state

deposits and trusteed assets less the total net amount of all the

company's liabilities and reserves in the United States, as

determined in accordance with Section 982.252, is the company's

trusteed surplus in the United States.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.252. FORM AND CONTENTS OF FINANCIAL STATEMENT OF ALIEN

INSURANCE COMPANY. (a) A financial statement required to be

filed by an alien insurance company under Section 982.004 must be

on a form prescribed by the commissioner and must show, as of the

preceding December 31:

(1) the company's general deposits of assets in the United

States deposited with officers of any state in trust for the

exclusive benefit, security, and protection of the company's

policyholders in the United States;

(2) the company's special deposits of assets in the United

States deposited with officers of any state in trust for the

exclusive benefit, security, and protection of the company's

policyholders in a particular state;

(3) the company's trusteed assets in the United States held for

the exclusive benefit, security, and protection of the company's

policyholders in the United States;

(4) the company's reserves and other liabilities arising out of

policies or obligations issued, assumed, or incurred in the

United States; and

(5) any further information as determined necessary to implement

this section.

(b) In addition to the requirements under Subsection (a), a

financial statement filed by an alien life insurance company must

show the amount of the company's policy loans to policyholders in

the United States, not exceeding the amount of the legal reserve

required on each policy.

company's liabilities in the United States, the company may

deduct:

(1) reinsurance on losses with insurers qualifying for credit,

less unpaid reinsurance premiums, with a schedule showing by

company the amount deducted; and

(2) unearned premiums on agents' balances or uncollected

premiums not more than 90 days past due.

(d) Any liability on an asset not considered in the statement

may be applied against that asset.

(e) A special state deposit held for the exclusive benefit of

policyholders of a particular state may be allowed as an offset

against the alien insurance company's liabilities in that state

only.

(f) The statement may include accrued interest at the date of

the statement on assets deposited with states and trustees if the

interest is collected by the states or trustees.

(g) The United States manager, attorney-in-fact, or authorized

assistant United States manager of the alien insurance company

shall sign and verify the statement. The United States trustee or

trustees shall certify the items of securities and other property

held under deeds of trust.

(h) The commissioner may at any time and for any period

determined necessary require additional statements of the kind

required by this section.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.253. IMPAIRMENT OF TRUSTEED SURPLUS. (a) If the

commissioner determines from a statement filed under Section

982.252 or any report that an alien insurance company's trusteed

surplus is less than the greater of the minimum capital required

of, or the minimum surplus required to be maintained by, a

domestic insurance company authorized to engage in the same kinds

of insurance, the commissioner shall:

(1) determine the amount of the impairment; and

(2) order the company, through its United States manager or

attorney, to eliminate the impairment within the period

designated by the commissioner.

(b) The period for eliminating an impairment under Subsection

(a) must end not later than the 90th day after the date the order

is served.

alien insurance company's certificate of authority or prohibit

the company from issuing new policies in the United States while

an impairment under Subsection (a) exists.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.254. FAILURE TO ELIMINATE IMPAIRMENT OF TRUSTEED

SURPLUS. If an alien insurance company has not satisfied the

commissioner at the end of the designated period under Section

982.253(a) that the impairment has been eliminated, the

commissioner may proceed against the company as provided by

Chapter 441 as an insurance company whose further transaction of

the business of insurance in the United States will be hazardous

to its policyholders in the United States.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2E.137, eff. April 1, 2009.

Sec. 982.255. EXAMINATION OF ALIEN INSURANCE COMPANY. (a) The

books, records, accounting, and verification relating to an

authorized alien insurance company's trusteed assets are subject

to examination by the department or the department's appointed

representative at the United States branch office of the company,

in the same manner and to the same extent that applies under

Subchapter A, Chapter 86, and Sections 401.051, 401.052,

401.054-401.062, 401.151, 401.152, 401.155, and 401.156 to

domestic and foreign insurance companies authorized to engage in

the same kind of insurance.

(b) The books, records, and accounting for trusteed assets of an

alien insurance company that enters the United States through

this state shall be maintained in English in the company's branch

office in this state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 2E.138, eff. April 1, 2009.

SUBCHAPTER F. PROVISIONS APPLICABLE TO CERTAIN COMPANIES

Sec. 982.301. APPLICABILITY OF SUBCHAPTER. This subchapter

applies only to a foreign or alien insurance company that is not

a life insurance company, accident insurance company, life and

accident insurance company, health and accident insurance

company, or life, health, and accident insurance company.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.302. REINSURANCE NOT PROHIBITED. This chapter does not

prohibit a foreign insurance company from:

(1) reinsuring a domestic insurance company; or

(2) locating in this state, if the company does not directly

insure persons domiciled in this state or insure against risks

located in this state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.303. TEXAS LAW ACCEPTED. A foreign or alien insurance

company that issues a contract or policy in this state is

considered to have agreed to comply with this code as a

prerequisite to engaging in the business of insurance in this

state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.304. SAME OR DECEPTIVELY SIMILAR NAME. A foreign or

alien insurance company may not be denied permission to engage in

the business of insurance in this state because the name of the

company is the same as or deceptively similar to the name of a

domestic corporation existing under the laws of this state or of

another foreign or alien insurance company authorized to engage

in the business of insurance in this state if the company

desiring to engage in the business of insurance in this state:

(1) files with the department and with any county clerk as

provided by Subchapter B or C, Chapter 71, Business &

Commerce Code, an assumed name certificate stating a name

permitted under the laws of this state; and

(2) does not engage in any business in this state except under

the assumed name.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.21, eff. April 1, 2009.

Sec. 982.305. LIMITATION ON ACTIONS IN OTHER STATE COURTS. An

action involving a contract entered into in this state between a

foreign or alien insurance company and a resident of this state

may not be brought in or transferred to a court in another state

without the consent of the resident of this state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

Sec. 982.306. DEPOSIT FOR FOREIGN CASUALTY COMPANY NOT REQUIRED.

(a) The department may not require a foreign casualty insurance

company to make or maintain the deposit required of a domestic

casualty insurance company by Section 861.252 if a similar

deposit has been made in any state of the United States, under

the laws of that state, in a manner that secures equally all

policyholders of the company who are citizens and residents of

the United States.

(b) A certificate of the deposit under the signature and seal of

the officer of the other state with whom the deposit is made must

be filed with the department.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,

2003.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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