Law:Title 6. Organization Of Insurers And Related Entities. Subtitle I. Companies That Are Not Organized In Texas from Chapter 984. Mexican Casualty Insurance Companies (Texas)

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Subtitle I. Companies That Are Not Organized In Texas

Contents

Chapter 984. Mexican Casualty Insurance Companies

Subchapter A. General Provisions

Section  984.001.  Authority Of Mexican Casualty Insurance Companies.

(a) An insurance company that complies with this chapter may issue an insurance policy described by Subsection (b) as a Mexican casualty insurance company if the company is:

(1)  organized under the laws of the United Mexican States or any state of that nation; and

(2)  authorized to write insurance policies described by Subsection (b) by those laws, the company's charter or articles of association, and a license that is in effect and that is issued by the appropriate insurance regulatory authority of the United Mexican States or any state of that nation.

(b)  A Mexican casualty insurance company described by Subsection (a) may issue in this state an insurance policy only if the policy:

(1)  provides automobile coverage or accident or other casualty insurance coverage on a person or personal property; and

(2)  is in effect only while the person or property covered by the policy is within the boundaries of the United Mexican States.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Section 984.002.  Authorized Agent Required.

A Mexican casualty insurance company may engage in the business of insurance in this state only through an agent licensed by the department under  Subchapters A-E and G, Chapter 4051, or Chapter 4055.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.235(a), eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 730, Sec. 2E.139, eff. April 1, 2009.



Subchapter B. Authority To Engage In Business In This State

Section  984.051.  Certificate Of Authority Required.

A Mexican casualty insurance company must hold a certificate of authority to engage in the business of insurance under this chapter.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Section  984.052.  Application.

(a) To issue insurance policies under this chapter, a Mexican casualty insurance company must file with the department an application for a certificate of authority under this chapter.

(b)  The application must be:

(1)  in writing;

(2)  accompanied by a correct English translation of the company's charter and bylaws; and

(3)  certified by:

(A)  two of the company's principal officers; and

(B)  the insurance regulatory officials under whose supervision the company operates in the United Mexican States.

(c)  Before the department issues a certificate of authority under this chapter to a Mexican casualty insurance company, the company must file with the department:

(1)  a photostatic copy of any license held by the company to engage in the business of insurance in the United Mexican States;

(2)  a copy of the company's most recent financial reports or statements; and

(3)  a copy of the most recent examination reports of the company's affairs and financial condition by the insurance regulatory authorities under which the company operates in the United Mexican States.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Subchapter C. Deposit With Comptroller

Section  984.101.  Deposit With Comptroller Required.

(a) A Mexican casualty insurance company shall deposit with the comptroller at least $25,000 in:

(1)  United States currency; or

(2)  securities that are:

(A)  eligible for other casualty insurance companies authorized to engage in the business of insurance in this state; and

(B)  approved by the department.

(b)  The deposit shall be used to pay any lawful claim or final judgment against the company, including any claim or judgment for tax due to this state and any policy claim or other debt or obligation incurred in the course of the company's operations as provided by this chapter.

(c)  The company shall periodically deposit additional currency or securities described by Subsection (a) as necessary to maintain a minimum total deposit of $25,000.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Section  984.102.  Payments From Deposit.

On approval of the department, the comptroller shall pay from the deposit required under this subchapter any unsatisfied final judgment obtained against the Mexican casualty insurance company in a court of this state based on substituted service as authorized by Chapter 804.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Section  984.103.  Return Of Deposit.

With the approval of the department, the comptroller shall return the deposit required under this subchapter, or the unencumbered balance of the deposit, to the Mexican casualty insurance company on:

(1)  the company's withdrawal from the business of insurance in this state; and

(2)  a showing to the department that:

(A)  each policy written by the company in this state has expired or been canceled; and

(B)  each claim or obligation of the company on a policy written in this state that constitutes a lawful charge against the deposit has been satisfied.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Subchapter D. Taxes And Charges; Reports

Section  984.151.  Premium Tax.

(a) A Mexican casualty insurance company shall pay to this state an annual premium tax based solely on the company's gross premium receipts from insurance policies issued by the company in this state that cover resident citizens of this state or property or risks principally domiciled or located in this state, as shown by reports made to the department each year.

(b)  The company shall pay the tax at the same percentage rate and in the same manner that is required of other insurance companies authorized to write accident and casualty coverage in this state.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Section  984.152.  Other Taxes And Charges.

In addition to paying a premium tax as required by Section 984.151, a Mexican casualty insurance company shall pay any other maintenance fee, charge, or tax that is required of other insurance companies authorized to write accident and casualty coverage in this state on the same basis as is required of those companies.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Section  984.153.  Reports.

A Mexican casualty insurance company shall make the same reports that other insurance companies authorized to write accident and casualty coverage in this state are required to make. The company shall make the reports on forms adopted by the department.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Subchapter E. Regulation And Enforcement

Section  984.201.  Agreement To Comply With Chapter.

A Mexican casualty insurance company shall file in English a document executed by the company's officials expressly accepting the terms of this chapter and agreeing that the department may revoke, suspend, or refuse to grant a certificate of authority under this chapter on a determination by the commissioner that the company:

(1)  is insolvent or in hazardous financial condition; or

(2)  has violated an applicable law of this state or of the company's home jurisdiction.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Section  984.202.  Annual Statement.

A Mexican casualty insurance company shall file annually with the department each of the items listed in Section 984.052(c).

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Section  984.203.  Authority To Conduct Examination.

The department may examine at any time the affairs and condition and any books or records of a Mexican casualty insurance company, at the company's expense, to determine the company's:

(1)  financial condition and solvency; and

(2)  compliance with the applicable laws of this state and of the company's home jurisdiction.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.



Section  984.204.  Authority To Revoke Or Suspend Certificate Of Authority.

The commissioner may revoke or suspend a Mexican casualty insurance company's certificate of authority under this chapter if the commissioner, after notice and an opportunity for a hearing, determines that the company, with neglect and wilful disregard, systematically failed to comply with obligations derived from insurance policies issued in this state and the laws applicable to those policies.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.


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