Texas § IN.823.002 - DEFINITIONS

§ IN.823.002. DEFINITIONS

DEFINITIONS. In this chapter: (1) "Acquiring person" means the person who is acquiring control of a domestic insurer or on whose behalf control of a domestic insurer is being acquired. (2) "Controlled insurer" means an insurer that is controlled directly or indirectly by a holding company. (3) "Controlled person" means a person, other than a controlled insurer, who is controlled directly or indirectly by a holding company. (3-a) "Divesting person" means a person who has control of a domestic insurer and who intends to divest control of the domestic insurer. (3-b) "Divestiture" means an abandonment of control of a domestic insurer by a divesting person that does not result in the transfer of control to another person. (4) "Domestic insurer" includes a commercially domiciled insurer described by Section 823.004 . (4-a) "Enterprise risk" means any activity, circumstance, event, or series of events involving one or more affiliates of an insurer that, if not remedied promptly, is likely to have a material adverse effect on the financial condition or liquidity of the insurer or its insurance holding company system as a whole, including anything: (A) that would cause the insurer's risk-based capital to fall into company action level; or (B) that would cause the insurer to be in hazardous financial condition. (4-b) "Group-wide supervisor" means the regulatory official authorized to engage in conducting and coordinating group-wide supervision activities who is determined or acknowledged by the commissioner under Section 823.0147 to have sufficient significant contacts with the internationally active insurance group. (5) "Holding company" means a person who directly or indirectly controls an insurer. The term does not include the United States, a state or a political subdivision, agency, or other instrumentality of a state, or a corporation that is wholly owned directly or indirectly by the United States, a state, or an instrumentality of a state. (6) "Insurer" means any insurance company organized under the laws of this state, a commercially domiciled insurer, or an insurer authorized to engage in the business of insurance in this state. The term includes a capital stock company, mutual company, farm mutual insurance company, title insurance company, fraternal benefit society, local mutual aid association, statewide mutual assessment company, county mutual insurance company, Lloyd's plan, reciprocal or interinsurance exchange, stipulated premium insurance company, and group hospital service corporation. The term does not include an agency, authority, or instrumentality of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state. (6-a) "Internationally active insurance group" means an insurance holding company system that: (A) includes an insurer registered under Subchapter B; and (B) meets the following criteria: (i) has premiums written in at least three countries; (ii) has a percentage of gross premiums written outside the United States of at least 10 percent of the insurance holding company system's total gross written premiums; and (iii) based on a three-year rolling average, has total assets of at least $50 billion or total gross written premiums of at least $10 billion. (7) "Person" means an individual, corporation, partnership, association, joint stock company, trust, or unincorporated organization, or a similar entity or a combination of the listed entities acting in concert. The term does not include a securities broker while performing no more than a function that is usual and customary for a securities broker. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 922 (S.B. 1431 ), Sec. 1, eff. September 1, 2011. Acts 2017, 85th Leg., R.S., Ch. 38 (H.B. 3220 ), Sec. 1, eff. May 19, 2017.