CHAPTER 821. GENERAL PROVISIONS
INSURANCE CODE
TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES
SUBTITLE B. ORGANIZATION OF REGULATED ENTITIES
CHAPTER 821. GENERAL PROVISIONS
SUBCHAPTER A. MINIMUM INSURANCE TO BE MAINTAINED BY INSURER
Sec. 821.001. APPLICABILITY OF SUBCHAPTER. (a) This subchapter
applies to any insurer that is required by law to hold a
certificate of authority issued by the department, including:
(1) a domestic insurance company;
(2) a mutual life insurance company;
(3) a statewide mutual assessment company;
(4) a mutual insurance company other than a life insurance
company operating under Chapter 883;
(5) a Lloyd's plan;
(6) a reciprocal or interinsurance exchange; and
(7) a title insurance company.
(b) This subchapter does not apply to:
(1) an insurer before the second anniversary of the date the
insurer's original certificate of authority is issued; or
(2) an insurer that was paid more than $50,000 in gross premium
income by policyholders during the preceding accounting year of
the insurer.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 821.002. EXEMPTIONS. This subchapter does not apply to:
(1) a fraternal benefit society operating under Chapter 885;
(2) a local mutual aid association or local mutual burial
association operating under Chapters 886, 887, and 888;
(3) a statewide mutual assessment company or association
operating under Chapters 881, 887, or 888;
(4) another association operating under Subchapter C, Chapter
887;
(5) a farm mutual insurance company operating under Chapter 911;
or
(6) a county mutual fire insurance company operating under
Chapter 912.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 821.003. MINIMUM REQUIREMENTS. An insurer must maintain at
all times not less than 100 policyholders or certificate holders
nor less than $200,000 of insurance that the insurer has written
or acquired through reinsurance contracts.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 821.004. REPORT TO ATTORNEY GENERAL; SUIT AGAINST INSURER.
(a) The department shall report to the attorney general an
insurer's failure to comply with this subchapter.
(b) On receiving a report under Subsection (a), the attorney
general shall bring suit in a district court in Travis County
against the insurer to cancel, forfeit, and revoke the insurer's:
(1) charter, articles of association, or articles of agreement;
and
(2) certificate of authority.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
SUBCHAPTER B. ASSOCIATION OF INSURANCE COMPANIES
Sec. 821.051. PAYMENT OF TAXES AND FEES; COMPLIANCE WITH LAW.
(a) Life, health, fire, marine, or inland marine insurance
companies that associate to issue or sell insurance policies may
not engage in the business of insurance in this state until each
company has:
(1) paid the company's taxes and fees that are due; and
(2) complied with all requirements of law.
(b) The commissioner may not authorize to engage in the business
of insurance in this state an insurance company that does not
comply with Subsection (a).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.