Texas § IN.225.001 - DEFINITIONS

§ IN.225.001. DEFINITIONS

DEFINITIONS. In this chapter: (1) "Affiliate" means, with respect to an insured, a person or entity that controls, is controlled by, or is under common control with the insured. (2) "Affiliated group" means a group of entities whose members are all affiliated. (3) "Control" means, with respect to determining the home state of an affiliated entity: (A) to directly or indirectly, acting through one or more persons, own, control, or hold the power to vote at least 25 percent of any class of voting security of the affiliated entity; or (B) to control in any manner the election of the majority of directors or trustees of the affiliated entity. (4) "Home state" means: (A) for an insured that is not an affiliated group described by Paragraph (B): (i) the state in which the insured maintains the insured's principal residence, if the insured is an individual; (ii) the state in which an insured that is not an individual maintains its principal place of business; or (iii) if 100 percent of the insured risk is located outside of the state in which the insured maintains the insured's principal residence or maintains the insured's principal place of business, as applicable, the state to which the largest percentage of the insured's taxable premium for the insurance contract that covers the risk is allocated; or (B) for an affiliated group with respect to which more than one member is a named insured on a single insurance contract subject to this chapter, the home state of the member, as determined under Paragraph (A), that has the largest percentage of premium attributed to it under the insurance contract. (5) "Premium" means any payment made in consideration for insurance and includes: (A) a premium; (B) premium deposits; (C) a membership fee; (D) a registration fee; (E) an assessment; (F) dues; and (G) any other compensation given in consideration for surplus lines insurance. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005. Amended by: Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1 ), Sec. 18.02, eff. September 28, 2011.