CHAPTER 984. MEXICAN CASUALTY INSURANCE COMPANIES
INSURANCE CODE
TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES
SUBTITLE I. COMPANIES THAT ARE NOT ORGANIZED IN TEXAS
CHAPTER 984. MEXICAN CASUALTY INSURANCE COMPANIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 984.001. AUTHORITY OF MEXICAN CASUALTY INSURANCE COMPANIES.
(a) An insurance company that complies with this chapter may
issue an insurance policy described by Subsection (b) as a
Mexican casualty insurance company if the company is:
(1) organized under the laws of the United Mexican States or any
state of that nation; and
(2) authorized to write insurance policies described by
Subsection (b) by those laws, the company's charter or articles
of association, and a license that is in effect and that is
issued by the appropriate insurance regulatory authority of the
United Mexican States or any state of that nation.
(b) A Mexican casualty insurance company described by Subsection
(a) may issue in this state an insurance policy only if the
policy:
(1) provides automobile coverage or accident or other casualty
insurance coverage on a person or personal property; and
(2) is in effect only while the person or property covered by
the policy is within the boundaries of the United Mexican States.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 984.002. AUTHORIZED AGENT REQUIRED. A Mexican casualty
insurance company may engage in the business of insurance in this
state only through an agent licensed by the department under
Subchapters A-E and G, Chapter 4051, or Chapter 4055.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.235(a),
eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 2E.139, eff. April 1, 2009.
SUBCHAPTER B. AUTHORITY TO ENGAGE IN BUSINESS IN THIS STATE
Sec. 984.051. CERTIFICATE OF AUTHORITY REQUIRED. A Mexican
casualty insurance company must hold a certificate of authority
to engage in the business of insurance under this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 984.052. APPLICATION. (a) To issue insurance policies
under this chapter, a Mexican casualty insurance company must
file with the department an application for a certificate of
authority under this chapter.
(b) The application must be:
(1) in writing;
(2) accompanied by a correct English translation of the
company's charter and bylaws; and
(3) certified by:
(A) two of the company's principal officers; and
(B) the insurance regulatory officials under whose supervision
the company operates in the United Mexican States.
(c) Before the department issues a certificate of authority
under this chapter to a Mexican casualty insurance company, the
company must file with the department:
(1) a photostatic copy of any license held by the company to
engage in the business of insurance in the United Mexican States;
(2) a copy of the company's most recent financial reports or
statements; and
(3) a copy of the most recent examination reports of the
company's affairs and financial condition by the insurance
regulatory authorities under which the company operates in the
United Mexican States.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
SUBCHAPTER C. DEPOSIT WITH COMPTROLLER
Sec. 984.101. DEPOSIT WITH COMPTROLLER REQUIRED. (a) A Mexican
casualty insurance company shall deposit with the comptroller at
least $25,000 in:
(1) United States currency; or
(2) securities that are:
(A) eligible for other casualty insurance companies authorized
to engage in the business of insurance in this state; and
(B) approved by the department.
(b) The deposit shall be used to pay any lawful claim or final
judgment against the company, including any claim or judgment for
tax due to this state and any policy claim or other debt or
obligation incurred in the course of the company's operations as
provided by this chapter.
(c) The company shall periodically deposit additional currency
or securities described by Subsection (a) as necessary to
maintain a minimum total deposit of $25,000.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 984.102. PAYMENTS FROM DEPOSIT. On approval of the
department, the comptroller shall pay from the deposit required
under this subchapter any unsatisfied final judgment obtained
against the Mexican casualty insurance company in a court of this
state based on substituted service as authorized by Chapter 804.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 984.103. RETURN OF DEPOSIT. With the approval of the
department, the comptroller shall return the deposit required
under this subchapter, or the unencumbered balance of the
deposit, to the Mexican casualty insurance company on:
(1) the company's withdrawal from the business of insurance in
this state; and
(2) a showing to the department that:
(A) each policy written by the company in this state has expired
or been canceled; and
(B) each claim or obligation of the company on a policy written
in this state that constitutes a lawful charge against the
deposit has been satisfied.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
SUBCHAPTER D. TAXES AND CHARGES; REPORTS
Sec. 984.151. PREMIUM TAX. (a) A Mexican casualty insurance
company shall pay to this state an annual premium tax based
solely on the company's gross premium receipts from insurance
policies issued by the company in this state that cover resident
citizens of this state or property or risks principally domiciled
or located in this state, as shown by reports made to the
department each year.
(b) The company shall pay the tax at the same percentage rate
and in the same manner that is required of other insurance
companies authorized to write accident and casualty coverage in
this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 984.152. OTHER TAXES AND CHARGES. In addition to paying a
premium tax as required by Section 984.151, a Mexican casualty
insurance company shall pay any other maintenance fee, charge, or
tax that is required of other insurance companies authorized to
write accident and casualty coverage in this state on the same
basis as is required of those companies.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 984.153. REPORTS. A Mexican casualty insurance company
shall make the same reports that other insurance companies
authorized to write accident and casualty coverage in this state
are required to make. The company shall make the reports on forms
adopted by the department.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
SUBCHAPTER E. REGULATION AND ENFORCEMENT
Sec. 984.201. AGREEMENT TO COMPLY WITH CHAPTER. A Mexican
casualty insurance company shall file in English a document
executed by the company's officials expressly accepting the terms
of this chapter and agreeing that the department may revoke,
suspend, or refuse to grant a certificate of authority under this
chapter on a determination by the commissioner that the company:
(1) is insolvent or in hazardous financial condition; or
(2) has violated an applicable law of this state or of the
company's home jurisdiction.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 984.202. ANNUAL STATEMENT. A Mexican casualty insurance
company shall file annually with the department each of the items
listed in Section 984.052(c).
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 984.203. AUTHORITY TO CONDUCT EXAMINATION. The department
may examine at any time the affairs and condition and any books
or records of a Mexican casualty insurance company, at the
company's expense, to determine the company's:
(1) financial condition and solvency; and
(2) compliance with the applicable laws of this state and of the
company's home jurisdiction.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 984.204. AUTHORITY TO REVOKE OR SUSPEND CERTIFICATE OF
AUTHORITY. The commissioner may revoke or suspend a Mexican
casualty insurance company's certificate of authority under this
chapter if the commissioner, after notice and an opportunity for
a hearing, determines that the company, with neglect and wilful
disregard, systematically failed to comply with obligations
derived from insurance policies issued in this state and the laws
applicable to those policies.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.