Texas § IN.823.001 - FINDINGS AND PURPOSE

§ IN.823.001. FINDINGS AND PURPOSE

FINDINGS AND PURPOSE. (a) It is consistent with the public interest and the interest of policyholders to permit insurers to: (1) engage in activities that would enable the insurers to make better use of management skills and facilities; (2) have free access to capital markets that could provide funds for insurers to use in diversification programs; (3) implement sound tax planning conclusions; and (4) serve the changing needs of the public and adapt to changing conditions of the social, economic, and political environment, so that insurers are able to compete effectively and to meet the growing public demand for institutions capable of providing a comprehensive range of financial services. (b) The public interest and the interests of policyholders are adversely affected if: (1) control of an insurer is sought by persons who would use the control adversely to the interest of policyholders; (2) acquisition of control of an insurer substantially lessens competition or creates a monopoly in the insurance business in this state; (3) an insurer that is part of a holding company system is caused to enter into transactions or relationships with affiliated companies on terms that are not fair and reasonable; or (4) an insurer pays dividends to shareholders that jeopardize the financial condition of the insurer. (c) The purpose of this chapter is to promote the public interest by: (1) facilitating the achievement of the objectives described by Subsection (a); (2) requiring disclosure of pertinent information relating to and approval of changes in control of an insurer; (3) requiring disclosure and approval of material transactions and relationships between the insurer and the insurer's affiliates, including certain dividends to shareholders paid by the insurer; and (4) providing standards governing material transactions between the insurer and the insurer's affiliates. (d) It is desirable to prevent unnecessary multiple and conflicting regulation of insurers. In accordance with this purpose and except as provided by this chapter, this state shall exercise regulatory authority under this chapter only with respect to domestic insurers. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636 ), Sec. 2E.010, eff. April 1, 2009.