Tex. Ins. Code Section 228.103
Management by and Certain Ownership Interests of Insurance Entities Prohibited

(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.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.

Source: Section 228.103 — Management by and Certain Ownership Interests of Insurance Entities Prohibited, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­228.­htm#228.­103 (accessed Jun. 5, 2024).

228.001
General Definitions 228.002
Definition of Affiliate 228.051
Administration by Comptroller 228.052
Rules 228.053
Report to Legislature 228.054
Promotion of Program 228.101
Application for Certification 228.102
Qualification 228.103
Management by and Certain Ownership Interests of Insurance Entities Prohibited 228.104
Action on Application 228.105
Continuation of Certification 228.106
Reports to Comptroller 228.107
Renewal Fee 228.108
Offering Material Used by Certified Capital Company 228.151
Required Schedule of Investment 228.152
Investment in Early Stage Business Required 228.153
Investment in Strategic Investment Business Required 228.154
Certified Capital Not Invested in Qualified Investments 228.155
Computation of Amount of Investments 228.156
Limit on Qualified Investment 228.157
Distributions by Certified Capital Company 228.158
Repayment of Debt 228.201
Definition of Qualified Business 228.202
Relocation of Principal Business Operations 228.203
Evaluation of Business by Comptroller 228.204
Continuation of Classification as Qualified Business 228.251
Premium Tax Credit 228.252
Limit on Premium Tax Credit 228.253
Premium Tax Credit Allocation Claim Required 228.254
Total Limit on Premium Tax Credits 228.255
Allocation of Premium Tax Credit 228.256
Treatment of Credits and Capital 228.257
Transferability of Credit 228.258
Impact of Premium Tax Credit on Insurance Ratemaking 228.259
Retaliatory Tax 228.301
Annual Review by Comptroller 228.302
Decertification of Certified Capital Company 228.303
Administrative Penalty 228.351
Recapture and Forfeiture of Premium Tax Credit Following Decertification 228.352
Notice of Recapture and Forfeiture of Premium Tax Credit 228.353
Indemnity Agreements and Insurance Authorized
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Accessed:
Jun. 5, 2024

§ 228.103’s source at texas​.gov