Texas § IN.823.005 - DESCRIPTION OF CONTROL

§ IN.823.005. DESCRIPTION OF CONTROL

DESCRIPTION OF CONTROL; DETERMINATION OF CONTROL. (a) For purposes of this chapter, control is the power to direct, or cause the direction of, the management and policies of a person, other than power that results from an official position with or corporate office held by the person. The power may be possessed directly or indirectly by any means, including through the ownership of voting securities or by contract, other than a commercial contract for goods or nonmanagement services. (b) For purposes of this chapter, a person controls another if the person possesses the power described by Subsection (a) with regard to the other person. (c) After providing notice and opportunity for hearing to each person in interest, the commissioner may determine that, notwithstanding the absence of a presumption under Section 823.151 , a person controls an authorized insurer if the person, directly or indirectly and alone or under an agreement with one or more other persons, exercises such a controlling influence over the management or policies of the insurer that it is necessary or appropriate in the public interest or for the protection of the insurer's policyholders that the person be considered to control the insurer. The commissioner shall make specific findings of fact to support a determination under this subsection. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.