Tex.
Ins. Code Section 964.059
Action on Application
(a)
The commissioner shall determine whether:(1)
the capital and surplus, or the equivalent, of the applicant meet the requirements of this chapter;(2)
the officers or members of the applicant’s governing body have sufficient insurance experience, ability, standing, and good record to make success of the captive insurance company probable;(3)
the applicant is acting in good faith; and(4)
the applicant otherwise satisfies the requirements of this chapter.(b)
In evaluating the application, the commissioner shall consider:(1)
the amount and liquidity of the applicant’s assets relative to the risks to be assumed;(2)
the adequacy of the expertise, experience, and character of each individual who will manage the applicant;(3)
the overall soundness of the applicant’s plan of operations and the projections contained in that plan;(4)
whether the applicant’s affiliates have significant operations located in this state; and(5)
any other factors the commissioner considers relevant to determine whether the applicant will be able to meet its policy obligations.(c)
If the commissioner determines that the applicant has not met the standards set out by Subsection (a), the commissioner shall deny the application in writing, giving the reason for the denial. On the applicant’s request, the commissioner shall hold a hearing on a denial. Not later than the 30th day after the date the commissioner receives the applicant’s request for a hearing, the commissioner shall set a hearing date.(d)
If the commissioner does not deny the application under Subsection (c), the commissioner shall approve the application and:(1)
issue to the applicant a certificate of authority to engage in business as provided for in the applicant’s certificate of formation or other governing document;(2)
certify and file the approved document with the department; and(3)
issue a certified copy of the certificate of authority to the applicant’s incorporators or officers.(e)
A certificate of authority issued to a captive insurance company under this section may not be sold.
Source:
Section 964.059 — Action on Application, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.964.htm#964.059 (accessed Apr. 20, 2024).
