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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. 841.403. ORGANIZATIONAL DOCUMENTS
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(a) A wholly owned domestic insurer authorized to transact the business of insurance under this chapter or an affiliated company organized or authorized to conduct business under the laws of this state may organize a limited purpose subsidiary life insurance company under this subchapter.
(b) A limited purpose subsidiary life insurance company may reinsure risks of the organizing company and of an affiliated company.
(c) A limited purpose subsidiary life insurance company's organizational documents must:
(1) limit the company's authority to transact the business of insurance to reinsuring only the risks of a ceding insurer;
(2) provide that the limited purpose subsidiary life insurance company may not otherwise engage in the business of insurance; and
(3) provide that the limited purpose subsidiary life insurance company must always be wholly owned by a domestic insurer authorized to transact the business of insurance under this chapter or by an affiliated company organized or authorized to do business under the laws of this state.