Texas § IN.4001.003 - DEFINITIONS

§ IN.4001.003. DEFINITIONS

DEFINITIONS. Unless the context clearly indicates otherwise, in this title: (1) "Agent" means a person who is an authorized agent of an insurer or health maintenance organization and any other person who performs the acts of an agent, whether through an oral, written, electronic, or other form of communication, by soliciting, negotiating, procuring, or collecting a premium on an insurance or annuity contract, or who represents or purports to represent a health maintenance organization, including a health maintenance organization offering only a single health care service plan, in soliciting, negotiating, procuring, or effectuating membership in the health maintenance organization. The term does not include: (A) a regular salaried officer or employee of an insurer, health maintenance organization, or agent who: (i) devotes substantially all of the officer's or employee's time to activities other than the solicitation of applications for insurance, annuity contracts, or memberships; (ii) does not receive a commission or other compensation directly dependent on the business obtained; and (iii) does not solicit or accept from the public applications for insurance, annuity contracts, or memberships; (B) an employer or an employer's officer or employee or a trustee of an employee benefit plan, to the extent that the employer, officer, employee, or trustee is engaged in the administration or operation of an employee benefits program involving the use of insurance or annuities issued by an insurer or memberships issued by a health maintenance organization, if the employer, officer, employee, or trustee is not directly or indirectly compensated by the insurer or health maintenance organization issuing the insurance or annuity contracts or memberships; (C) except as otherwise provided by this code, a depository institution, or an officer or employee of a depository institution, to the extent that the depository institution or officer or employee collects and remits premiums or charges by charging those premiums or charges against accounts of depositors on the orders of those depositors; or (D) a person or the employee of a person who has contracted to provide administrative, management, or health care services to a health maintenance organization and who is compensated for those services by the payment of an amount computed as a percentage of the revenues, net income, or profit of the health maintenance organization, if that method of compensation is the sole basis for subjecting that person or the employee of the person to this title. (2) "Control" means the power to direct or cause the direction of the management and policies of a license holder, whether directly or indirectly. For the purposes of this title, a person is considered to control: (A) a corporate license holder if the person, individually or acting with others, directly or indirectly, holds with the power to vote, owns, or controls, or holds proxies representing, at least 10 percent of the voting stock or voting rights of the corporate license holder; or (B) a partnership if the person through a right to vote or through any other right or power exercises rights in the management, direction, or conduct of the business of the partnership. (3) "Corporation" means a legal entity that is organized under the business corporation laws or limited liability company laws of this state or another state and that has as one of its purposes the authority to act as an agent. (4) "Depository institution" means: (A) a bank or savings association as defined by 12 U.S.C. Section 1813, as amended; (B) a foreign bank that maintains a branch, agency, or commercial lending company in the United States; (C) a federal or state credit union as defined by 12 U.S.C. Section 1752, as amended; (D) a bank branch; or (E) a bank subsidiary, as defined by state or federal law. (5) "Individual" means a natural person. The term includes a resident or a nonresident of this state. (6) "Insurer" means an insurance company or insurance carrier regulated by the department. The term includes: (A) a stock life, health, or accident insurance company; (B) a mutual life, health, or accident insurance company; (C) a stock fire or casualty insurance company; (D) a mutual fire or casualty insurance company; (E) a Mexican casualty insurance company; (F) a Lloyd's plan; (G) a reciprocal or interinsurance exchange; (H) a fraternal benefit society; (I) a stipulated premium company; (J) a nonprofit or for-profit legal services corporation; (K) a statewide mutual assessment company; (L) a local mutual aid association; (M) a local mutual burial association; (N) an association exempt under Section 887.102 ; (O) a nonprofit hospital, medical, or dental service corporation, including a company subject to Chapter 842 ; (P) a health maintenance organization; (Q) a county mutual insurance company; and (R) a farm mutual insurance company. (7) "Partnership" means an association of two or more persons organized under the partnership laws or limited liability partnership laws of this state or another state. The term includes a general partnership, limited partnership, limited liability partnership, and limited liability limited partnership. (8) "Person" means an individual, partnership, corporation, or depository institution. (9) Repealed by Acts 2021, 87th Leg., R.S., Ch. 355 (H.B. 4030 ), Sec. 22(1), eff. September 1, 2021. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005. Amended by: Acts 2021, 87th Leg., R.S., Ch. 355 (H.B. 4030 ), Sec. 8, eff. September 1, 2021. Acts 2021, 87th Leg., R.S., Ch. 355 (H.B. 4030 ), Sec. 22(1), eff. September 1, 2021.