2005 Texas Insurance Code CHAPTER 821. GENERAL PROVISIONS

INSURANCE CODE

SUBTITLE B. ORGANIZATION OF REGULATED ENTITIES

CHAPTER 821. GENERAL PROVISIONS

SUBCHAPTER A. MINIMUM INSURANCE TO BE MAINTAINED BY INSURER


	§ 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, § 1, eff. June 1, 2003.           


	§ 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, § 1, eff. June 1, 2003.           


	§ 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, § 1, eff. June 1, 2003.           


	§ 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, § 1, eff. June 1, 2003.           

SUBCHAPTER B. ASSOCIATION OF INSURANCE COMPANIES


	§ 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, § 1, eff. June 1, 2003.