Tex.
Ins. Code Section 823.163
Retention of Control
(a)
This section applies only to a domestic insurer that is a controlled insurer, regardless of when that control was acquired.(b)
A person violates this section if:(1)
the person is a domestic insurer, a person who controls the domestic insurer, including the insurer’s holding company, or an officer or director of the insurer or controlling person who violates this chapter or otherwise demonstrates untrustworthiness affecting the domestic insurer;(2)
the person is a domestic insurer that violates Chapter 15 (Monopolies, Trusts and Conspiracies in Restraint of Trade), Business & Commerce Code, or another antitrust law of this state; or(3)
the person is a domestic insurer’s affiliate that violates Chapter 15 (Monopolies, Trusts and Conspiracies in Restraint of Trade), Business & Commerce Code, or another antitrust law of this state and whose violation affects the domestic insurer.(c)
If, after notice and an opportunity for a hearing, the commissioner determines that a person violates this section, the commissioner shall issue written findings and an order based on those findings that directs the person to take appropriate action to cure the violation. The commissioner shall serve the order and findings on the person and the affected domestic insurer.(d)
In addition to this chapter, Subchapter C (Department Inquiry), Chapter 801 (Certificate of Authority), applies to a person who fails to comply with an order under this section.(e)
The commissioner may require the submission of any information the commissioner considers necessary to determine whether retention of control complies with this chapter and may require, as a condition of approval of the retention of control, that all or any part of that information be disclosed to the domestic insurer’s shareholders.
Source:
Section 823.163 — Retention of Control, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.823.htm#823.163 (accessed Jun. 5, 2024).
