Tex.
Ins. Code Section 822.158
Determination on Application for Charter Amendment
(a)
Not later than the 60th day after the date the application under Section 822.155 (Application for Amendment of Charter) is filed, the commissioner shall determine whether:(1)
the proposed capital structure of the insurance company meets the requirements of this code;(2)
the officers, directors, and managing head of the insurance company have sufficient insurance experience, ability, standing, and good record to make success of the company probable;(3)
the applicants are acting in good faith;(4)
if the proposed amendment relates to a diminution of the insurance company’s charter powers with respect to the kinds of insurance business in which the company may be engaged, all liabilities incidental to the exercise of the powers to be eliminated have been terminated or wholly reinsured; and(5)
the property involved in an increase of capital or surplus, or both, is:(A)
properly valued; and(B)
in the form authorized by the following provisions, to the extent those provisions apply:(i)
Subchapter B (General Investment Authority Specified by Law), Chapter 424 (Investments for Certain Insurers), other than Sections 424.052 (Additional General Investment Authority), 424.072 (Authorized Investments: Bonds Issued, Assumed, or Guaranteed in International Market), and 424.073 (Authorized Investments: Insurer Engaged in Business in Foreign Country); and(ii)
Section 822.204 (Form of Capital and Surplus).(b)
If the commissioner determines that the applicant has not met the requirements set out by Subsection (a), the commissioner shall deny the application. On the applicant’s request, the commissioner shall hold a hearing on a denial. Not later than the 30th day after the date of the applicant’s request for a hearing, the commissioner shall request a hearing date.(c)
If the commissioner does not deny the application under Subsection (b), the commissioner shall approve the application and the amendment shall be filed with the department.(d)
Except as provided by Subsection (e), when an amendment to an insurance company’s charter is filed with the department, the amendment is effective.(e)
On approval of a certificate required under Section 822.156 (Certificate Required for Amendment of Charter to Authorize Shares Without Par Value) and receipt of a fee in the amount determined under Chapter 202 (Fees), the commissioner shall issue to the directors a certified copy of an amendment authorizing the issuance of shares of stock without par value that is filed under this section. The amendment is effective on issuance of the certified copy of the amendment.
Source:
Section 822.158 — Determination on Application for Charter Amendment, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.822.htm#822.158 (accessed Jun. 5, 2024).
