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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES |
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Subtitle C. LIFE, HEALTH, AND ACCIDENT INSURERS AND RELATED ENTITIES |
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Chapter 841. LIFE, HEALTH, OR ACCIDENT INSURANCE COMPANIES |
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Subchapter I. LIMITED PURPOSE SUBSIDIARY LIFE INSURANCE COMPANIES |
Sec. 841.402. DEFINITIONS
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In this subchapter:
(1) "Affiliated company" means:
(A) domestic life insurance companies that are directly or indirectly wholly owned subsidiaries of the same holding company; or
(B) controlled persons.
(2) "Appointed actuary" means the actuary who is appointed by a limited purpose subsidiary life insurance company to render the actuarial opinion required by Subchapter B, Chapter 425.
(3) "Ceding insurer" means a company that cedes risk to a limited purpose subsidiary life insurance company under a reinsurance contract and that is:
(A) a domestic life insurance company that is the parent of a limited purpose subsidiary life insurance company; or
(B) an affiliated company of a limited purpose subsidiary life insurance company.
(4) "Controlled person" means a person organized or authorized to do business under the laws of this state that is controlled directly or indirectly by a holding company.
(5) "Excess reserves" means the amount of statutory reserves determined to be redundant by the appointed actuary for life insurance policies whose reserves are calculated under 28 T.A.C. Chapter 3, Subchapter EE. Excess reserves may not be an amount greater than the difference between the reserves calculated using 28 T.A.C. Chapter 3, Subchapter EE, and the reserves calculated using generally accepted accounting principles.
(6) "Guarantor" means a holding company or an affiliated company under Section 841.417 of the limited purpose subsidiary life insurance company that is a party to a guaranty.
(7) "Guaranty" means a commissioner-approved agreement by a guarantor with sufficient equity and financial strength to pay, during the life of the guaranty, an amount equal to the specified obligations of a limited purpose subsidiary life insurance company, less the equity of all ceding insurers that are subsidiaries of the guarantor, to satisfy the agreement.
(8) "Holding company" means a person that directly or indirectly controls an insurer.
(9) "Insurer" means a domestic life insurance company organized under this chapter.
(10) "Letter of credit" means a clean, unconditional, irrevocable letter of credit issued or confirmed by a qualified United States financial institution, as defined by Section 492.104(b)(2)(C).
(11) "Limited purpose subsidiary life insurance company" means a limited purpose subsidiary life insurance company organized under this subchapter:
(A) that is wholly owned by a life insurance company or an affiliated company; and
(B) to which the commissioner issues a certificate of authority under this chapter.
(12) "Material transaction" means a transaction or series of transactions involving amounts equal to or exceeding three percent of a limited purpose subsidiary life insurance company's admitted assets.
(13) "Organizational document" means a limited purpose subsidiary life insurance company's articles of incorporation and the company's bylaws.
(14) "Organizing company" means the company that organizes a limited purpose subsidiary life insurance company under this subchapter.
(15) "Parent" means a person that directly or indirectly controls through one or more intermediaries, or wholly owns, a limited purpose subsidiary life insurance company.
(16) "Person" has the meaning assigned by Section 823.002.
(17) "Reinsurance contract" means a contract between a limited purpose subsidiary life insurance company and a ceding insurer under which the limited purpose subsidiary life insurance company agrees to provide reinsurance to the ceding insurer for certain risks.
(18) "Risk" means a risk associated with life insurance policies written on or after the effective date of this chapter by a ceding insurer, or assumed by a ceding insurer from an affiliated company under life insurance policies which were written on or after the effective date of this chapter, by the affiliated company and for which the ceding insurer calculates statutory reserves for those policies pursuant to 28 T.A.C. Chapter 3, Subchapter EE.