CHAPTER 4007. NOTICE TO DEPARTMENT BY CERTAIN PROPERTY AND CASUALTY INSURANCE COMPANIES REGARDING AGENTS - Texas Statutes

INSURANCE CODE

TITLE 13. REGULATION OF PROFESSIONALS

SUBTITLE A. GENERAL PROVISIONS

CHAPTER 4007. NOTICE TO DEPARTMENT BY CERTAIN PROPERTY AND

CASUALTY INSURANCE COMPANIES REGARDING AGENTS

Sec. 4007.001. APPLICABILITY OF CHAPTER. This chapter applies

only to an insurance company authorized to engage in the business

of insurance in this state under:

(1) a provision of:

(A) Chapter 5, 1805, or 2171; or

(B) Subtitle B, C, D, E, F, H, or I, Title 10; or

(2) Chapter 861, 862, 883, 911, 912, 941, 942, 984, or 3503.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1I.001, eff. April 1, 2009.

Sec. 4007.002. NOTICE TO DEPARTMENT REQUIRED. (a) On forms

prescribed by the commissioner, an insurance company shall notify

the department not later than the 30th day after the date on

which:

(1) balances due from an insurance agent for more than 90 days

exceed $1 million or 10 percent of the company's policyholder

surplus computed on December 31 of the preceding year or the most

recent quarter if a report is specifically required by the

department;

(2) an agent's authority to settle claims for the company is

withdrawn; or

(3) the contract with an agent is canceled or terminated.

(b) An insurance company may comply with the notification

requirement of Subsection (a)(1) by submitting a single annual

report if:

(1) the company routinely operates above the limit established

by Subsection (a)(1); and

(2) the commissioner verifies that fact under a procedure

adopted by the commissioner.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1I.001, eff. April 1, 2009.