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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 3. DEPARTMENT FUNDS, FEES, AND TAXES |
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Subtitle B. INSURANCE PREMIUM TAXES |
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Chapter 228. PREMIUM TAX CREDIT FOR CERTAIN INVESTMENTS |
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Subchapter C. APPLICATION FOR AND GENERAL OPERATION OF CERTIFIED CAPITAL COMPANIES |
Sec. 228.103. MANAGEMENT BY AND CERTAIN OWNERSHIP INTERESTS OF INSURANCE ENTITIES PROHIBITED
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(a) An insurer, group of insurers, or other persons who may have state premium tax liability or the insurer's or person's affiliates may not directly or indirectly:
(1) manage a certified capital company;
(2) beneficially own, whether through rights, options, convertible interests, or otherwise, more than 10 percent of the outstanding voting securities of a certified capital company; or
(3) control the direction of investments for a certified capital company.
(b) Subsection (a) applies without regard to whether the insurer or other person or the affiliate of the insurer or other person is authorized by or engages in business in this state.
(c) Subsections (a) and (b) do not preclude an insurer, certified investor, or any other party from exercising its legal rights and remedies, including interim management of a certified capital company, if authorized by law, with respect to a certified capital company that is in default of the company's statutory or contractual obligations to the insurer, certified investor, or other party.
(d) This chapter does not limit an insurer's ownership of nonvoting equity interests in a certified capital company.