Tex. Ins. Code Section 401.017
Notice of Adverse Financial Condition or Misstatement of Financial Condition


(a)

An insurer or health maintenance organization required to file an audited financial report under this subchapter shall require the insurer’s or health maintenance organization’s accountant to immediately notify the board of directors of the insurer or health maintenance organization or the insurer’s or health maintenance organization’s audit committee in writing of any determination by that accountant that:

(1)

the insurer or health maintenance organization has materially misstated the insurer’s or health maintenance organization’s financial condition as reported to the commissioner as of the balance sheet date being audited; or

(2)

the insurer or health maintenance organization does not meet the minimum capital and surplus requirements prescribed by this code for the insurer or health maintenance organization as of that date.

(b)

An insurer or health maintenance organization that receives a notice described by Subsection (a) shall:

(1)

provide to the commissioner a copy of the notice not later than the fifth business day after the date the insurer or health maintenance organization receives the notice; and

(2)

provide to the accountant evidence that the notice was provided to the commissioner.

(c)

If the accountant does not receive the evidence required by Subsection (b)(2) on or before the fifth business day after the date the accountant notified the insurer or health maintenance organization under Subsection (a), the accountant shall file with the commissioner a copy of the accountant’s written notice not later than the 10th business day after the date the accountant notified the insurer or health maintenance organization.

(d)

An accountant is not liable to an insurer or health maintenance organization or the insurer’s or health maintenance organization’s policyholders, shareholders, officers, employees, directors, creditors, or affiliates for a statement made under this section if the statement was made in good faith to comply with this section.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.

Source: Section 401.017 — Notice of Adverse Financial Condition or Misstatement of Financial Condition, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­401.­htm#401.­017 (accessed Jun. 5, 2024).

401.001
Definitions
401.002
Purpose of Subchapter
401.003
Effect of Subchapter on Authority to Examine
401.004
Filing and Extensions for Filing of Audited Financial Report
401.005
Alternative Filing for Canadian or British Insurers or Health Maintenance Organizations
401.006
Exemption for Certain Small Insurers and Health Maintenance Organizations
401.007
Exemption for Certain Foreign or Alien Insurers or Health Maintenance Organizations
401.008
Hardship Exemption
401.009
Contents of Audited Financial Report
401.010
Requirements for Financial Statements in Audited Financial Report
401.011
Qualifications of Accountant
401.012
Hearing on Accountant Qualifications
401.013
Accountant’s Letter of Qualifications
401.014
Registration of Accountant
401.015
Resignation or Dismissal of Accountant
401.016
Audited Combined or Consolidated Financial Statements
401.017
Notice of Adverse Financial Condition or Misstatement of Financial Condition
401.018
Information Discovered After Date of Audited Financial Report
401.019
Report on Significant Deficiencies in Internal Control
401.020
Accountant Work Papers
401.021
Penalty for Failure to Comply
401.051
Duty to Examine Carriers
401.052
Frequency of Examination
401.053
Examination Period
401.054
Powers Related to Examination
401.055
Effect of Subchapter on Authority to Use Information
401.056
Rules Related to Reports and Hearings
401.057
Use of Audit and Work Papers
401.058
Confidentiality of Reports and Related Information
401.059
Determination of Value
401.060
Right to Information Relating to Determination of Value or Market Value
401.061
Disciplinary Action for Failure to Comply with Subchapter
401.062
Stay of Rule, Order, Decision, or Finding
401.101
Use of Department Examiner or Other Qualified Person or Firm
401.102
Legislative Intent as to Appointment or Employment of Examiners and Actuaries
401.103
Appointment of Examiners and Actuaries
401.104
Appointment of Examiners, Actuaries, and Other Persons for Certain Examinations
401.105
Oath of Examiners and Assistants
401.106
Right of Action on Bond
401.107
Registration of Contract Examiners
401.151
Expenses of Examination of Domestic Insurer
401.152
Expenses of Examination of Other Insurers
401.153
Reimbursement of Expenses of Certain Persons or Firms
401.154
Tax Credit Authorized
401.155
Additional Assessments
401.156
Deposit and Use of Assessment and Fee
401.201
Confidentiality of Early Warning System Information
401.251
Definitions
401.252
Self-directed Budget
401.253
Audits
401.254
Records
401.255
Membership in Employees Retirement System

Accessed:
Jun. 5, 2024

§ 401.017’s source at texas​.gov