CHAPTER 481. VOLUNTARY DEPOSITS
INSURANCE CODE
TITLE 4. REGULATION OF SOLVENCY
SUBTITLE E. REQUIREMENTS OF OTHER JURISDICTIONS
CHAPTER 481. VOLUNTARY DEPOSITS
Sec. 481.001. DEPOSIT WITH COMPTROLLER. (a) An insurer
organized and engaged in business under this code that is
required by another state, country, or province as a condition of
engaging in an insurance business in that state, country, or
province to make or maintain a deposit with an officer of any
state, country, or province may, at the insurer's discretion,
voluntarily deposit with the comptroller cash or securities in an
amount that is sufficient to satisfy the conditions of the other
state, country, or province.
(b) Any securities deposited must be approved by the
commissioner as being of a type and character in which the
insurer is authorized by law to invest.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 481.002. APPLICABILITY OF CHAPTER TO CERTAIN DEPOSITS. A
voluntary deposit held by the comptroller or the department that
was made by an insurer in this state before May 8, 1959, to gain
admission to another state may, at the insurer's option, be
considered to be held under this chapter.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 481.003. DUTIES OF COMPTROLLER. The comptroller shall
receive a deposit made by an insurer as described by this chapter
and hold it exclusively for the protection of all policyholders
or creditors of the insurer, wherever they are located, or for
the protection of the insurer's policyholders or creditors in a
particular state, country, or province, as designated by the
insurer at the time the insurer makes the deposit.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 481.004. ACCESS TO DEPOSIT. In accordance with reasonable
rules adopted by the comptroller and the commissioner, the proper
officer of an insurer making a deposit as described by this
chapter may at a reasonable time:
(1) examine the deposit;
(2) detach coupons from the securities; and
(3) collect interest on the deposit.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 481.005. SITUS OF DEPOSIT FOR TAX PURPOSES. For purposes
of state, county, or municipal taxation, the situs of deposited
securities is the municipality and county in which the principal
business office of the insurer making the deposit is fixed by the
insurer's charter.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 481.006. WITHDRAWAL OF DEPOSIT. (a) An insurer that makes
a deposit as described by this chapter may, at the insurer's
option, withdraw all or part of the deposit if:
(1) the insurer first deposits with the comptroller other
securities of like class as, and of an amount and value equal to,
the securities proposed to be withdrawn; and
(2) the withdrawal and substitution are approved by the
commissioner.
(b) An insurer, without making a substitute deposit under
Subsection (a), may not withdraw all or part of a deposit made as
described by this chapter for the protection of the insurer's
policyholders or creditors in a particular state, country, or
province that requires the deposit unless:
(1) the insurer files with the commissioner evidence that
satisfies the commissioner that the insurer has withdrawn from
business and does not have any unsecured liabilities outstanding
or potential policyholder liabilities or obligations in the other
state, country, or province; and
(2) the commissioner approves the withdrawal.
(c) An insurer, without making a substitute deposit under
Subsection (a), may not withdraw all or part of a deposit made as
described by this chapter for the protection of all of the
insurer's policyholders or creditors, wherever they are located,
unless:
(1) the insurer files with the commissioner evidence that
satisfies the commissioner that the insurer does not have any
unsecured liabilities outstanding or potential policy liabilities
or obligations anywhere; and
(2) the commissioner approves the withdrawal.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 481.007. WITHDRAWAL OF DEPOSIT AFTER MERGER, CONSOLIDATION,
OR TOTAL REINSURANCE. When two or more insurers that have two or
more deposits made for identical purposes as described by this
chapter or former Article 4739, Revised Statutes, merge,
consolidate, or enter into a total reinsurance contract by which
the ceding insurer is dissolved and the ceding insurer's assets
and liabilities are acquired or assumed by the surviving insurer,
the new, surviving, or reinsuring insurer may withdraw all of the
deposits, except for the deposit of the greatest amount and
value. The new, surviving, or reinsuring insurer must
demonstrate that the deposits are duplicated and that the insurer
is the owner of the deposits.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 481.008. RETURN OF DEPOSIT. An insurer that has made a
deposit as described by this chapter or former Article 4739,
Revised Statutes, is entitled to a return of the deposit if the
insurer applies for the return of the deposit and demonstrates to
the commissioner that the deposit is no longer required under the
laws of any state, country, or province in which the insurer
sought or gained admission to engage in business based on a
certificate of the deposit.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 481.009. DELIVERY OF DEPOSIT BY COMPTROLLER. On being
provided a certified copy of the commissioner's order issued
under Section 481.007 or 481.008, the comptroller shall release,
transfer, and deliver the deposit to the owner of the deposit in
accordance with the order.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.