Tex.
Ins. Code Section 823.157
Approval of Acquisition, Change, or Divestiture of Control
(a)
The commissioner shall approve or deny an acquisition, change, or divestiture of control for which a statement or notice is filed under Section 823.154 (Requirements for Acquisition or Exercise of Control or Divestiture of Domestic Insurer) not later than the 60th day after the date the statement required by that section is filed. The 60-day period may be waived by the person filing the statement or notice required by Section 823.154 (Requirements for Acquisition or Exercise of Control or Divestiture of Domestic Insurer) and the domestic insurer. On the request of either the person filing the statement or notice required by Section 823.154 (Requirements for Acquisition or Exercise of Control or Divestiture of Domestic Insurer), or the domestic insurer, the commissioner shall hold a hearing on a denial.(b)
In considering whether to approve or deny, the commissioner shall consider whether:(1)
immediately on the acquisition, change, or divestiture of control the domestic insurer would not be able to satisfy the requirements for the issuance of a new certificate of authority to write the line or lines of insurance for which the insurer holds a certificate of authority;(2)
the effect of the acquisition, change, or divestiture of control would be substantially to lessen competition in a line or subclassification lines of insurance in this state or tend to create a monopoly in a line or subclassification lines of insurance in this state;(3)
the financial condition of the acquiring person may jeopardize the financial stability of the domestic insurer or prejudice the interest of the domestic insurer’s policyholders;(4)
the acquiring person has a plan or proposal to liquidate the domestic insurer or cause the insurer to declare dividends or make distributions, sell any of its assets, consolidate or merge with any person, make a material change in its business or corporate structure or management, or enter into a material agreement, arrangement, or transaction of any kind with any person, and that the plan or proposal is unfair, prejudicial, hazardous, or unreasonable to the insurer’s policyholders and not in the public interest;(5)
due to a lack of competence, trustworthiness, experience, and integrity of the persons who would control the operation of the domestic insurer, the acquisition or change of control would not be in the interest of the insurer’s policyholders and the public;(5-a)
the divestiture of control may jeopardize the financial stability of the domestic insurer or prejudice the interest of the domestic insurer’s policyholders and other claimants; or(6)
the acquisition, change, or divestiture of control would violate the law of this or another state or the United States.(c)
If a proposed acquisition, change, or divestiture of control will require the approval of more than one commissioner, the commissioner may participate in a public hearing referred to in this chapter held on a consolidated basis on request of the person filing the statement required by Section 823.154 (Requirements for Acquisition or Exercise of Control or Divestiture of Domestic Insurer). The person filing the statement under Section 823.154 (Requirements for Acquisition or Exercise of Control or Divestiture of Domestic Insurer) shall file the statement with the National Association of Insurance Commissioners within five days of making the request for a public hearing. A hearing conducted on a consolidated basis shall be public and shall be held within the United States before the commissioners of the states in which the insurers are domiciled. The commissioners shall hear and receive evidence at the hearing. The commissioner may attend the hearing in person or by telecommunication.(d)
This section does not require the commissioner to hold a hearing before approving or denying an acquisition, change, or divestiture of control.
Source:
Section 823.157 — Approval of Acquisition, Change, or Divestiture of Control, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.823.htm#823.157 (accessed Jun. 5, 2024).
