28 Tex. Admin. Code § 6.1 - Definitions
(a) The definitions in Insurance Code §
964.001 apply to this
chapter.
(b) The following words
and terms when used in this chapter have the following meanings unless the
context clearly indicates otherwise:
(1)
Administrative services--Insurance-related services necessary for the operation
of a captive insurance company, including: claims adjustment; underwriting;
accounting; investment advice; risk management; regulatory compliance;
compiling statistics and preparing premium, loss, and tax reports; maintaining
books and records; handling reinsurance matters; and processing
premiums.
(2) Annual report--The
annual report includes the following information, as required in the Texas
Captive Annual Report form and instructions adopted under §
6.401 of this title:
(A) the captive insurance company's financial
statements, including disclosures and supporting schedules;
(B) an actuarial opinion completed by a
qualified actuary that provides an opinion relating to policy reserves and
other actuarial items for risks insured; and
(C) financial projections every third year,
as required under §
6.406 of this
title.
(3) Captive
management company--A legal entity, not an individual, that has oversight
responsibility for providing any administrative service to a captive insurance
company.
(4) Certificate of
filing--Evidence of the acceptance and filing of an instrument authorized to be
filed with the Texas Secretary of State under the Business Organizations Code,
Insurance Code Chapter 964, and this chapter.
(5) Commissioner--The Texas Commissioner of
Insurance.
(6) Department--The
Texas Department of Insurance.
(7)
General partnership--The term includes a general partnership designated as a
limited liability partnership. The term does not include a limited partnership,
including a limited partnership designated as a limited liability
partnership.
(8) Governing
body--The individuals designated by the captive insurance company, or attorney
in fact, who comprise the ultimate decision-making body of a captive insurance
company, or attorney in fact, including a board of directors or officers of the
captive insurance company, or attorney in fact. This definition applies to the
use of the term in this chapter and the relationship of the captive insurance
company, or attorney in fact, to the department. To the extent that the term
has a different meaning under the Business Organizations Code related to the
formation of entities and filings with the Texas Secretary of State, this
definition does not apply.
(9)
Licensed attorney--A person licensed and eligible to practice law.
(10) Qualified accountant--An independent
certified public accountant or accounting firm that meets the requirements of
Insurance Code §
401.011.
(11) Qualified actuary--A person who meets
the basic education, experience, and continuing education requirements set
forth in the Qualification Standards for Actuaries Issuing Statements of
Actuarial Opinion in the United States, promulgated by the American Academy of
Actuaries, and is either:
(A) a member of the
American Academy of Actuaries who has demonstrated actuarial competence to the
satisfaction of the Commissioner; or
(B) a member of the Casualty Actuarial
Society.
(12) Qualified
United States financial institution--An institution that:
(A) is organized under the laws of the United
States or any state of the United States;
(B) is regulated, supervised, and examined by
a federal or state authority that has regulatory authority over banks and trust
companies; and
(C) is approved by
the Commissioner.
(13)
Service providers--Captive management companies that provide administrative
services and individuals or entities providing legal, actuarial, or auditing
services.
(14) Texas Captive Annual
Report--The forms, instructions, and requirements adopted by reference in §
6.401 of this title that are
necessary for completing the annual report and other submissions under this
chapter.
(15) Ultimate controlling
person--Person or persons who control a captive insurance company and who are
not controlled by another person.
Notes
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