CHAPTER 803. LOCATION OF BOOKS, RECORDS, ACCOUNTS, AND OFFICES OUTSIDE OF THIS STATE - Texas Statutes

INSURANCE CODE

TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES

SUBTITLE A. GENERAL PROVISIONS APPLICABLE TO INSURERS AND RELATED

ENTITIES

CHAPTER 803. LOCATION OF BOOKS, RECORDS, ACCOUNTS, AND OFFICES

OUTSIDE OF THIS STATE

Sec. 803.001. DEFINITIONS. In this chapter:

(1) "Domestic company" means any entity licensed, chartered, or

organized under this code, including:

(A) a county mutual insurance company;

(B) a farm mutual insurance company;

(C) a fire and marine insurance company;

(D) a fraternal benefit society;

(E) a general casualty company;

(F) a group hospital service corporation;

(G) a health maintenance organization;

(H) a life, health, and accident insurance company;

(I) a Lloyd's plan;

(J) a local mutual aid association;

(K) a mutual life insurance company;

(L) a mutual insurance company other than a mutual life

insurance company;

(M) a nonprofit legal services corporation;

(N) a reciprocal exchange;

(O) a statewide mutual assessment company;

(P) a stipulated premium insurance company;

(Q) a surety and trust company; and

(R) a title insurance company.

(2) "Insurance holding company system" has the meaning described

by Section 823.006.

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

2003.

Sec. 803.002. APPLICABILITY OF CHAPTER. This chapter applies

only to a domestic company that is:

(1) an affiliate of an insurance holding company system and in

compliance with Chapter 823;

(2) a nonprofit legal services corporation the claims and daily

affairs of which are handled under contract by a foreign insurer

that holds a certificate of authority to engage in a similar

business in this state; or

(3) a health maintenance organization that is affiliated with

another health maintenance organization or a health care

provider.

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

2003.

Sec. 803.003. AUTHORITY TO LOCATE OUT OF STATE. (a) A domestic

company may locate and maintain its principal offices and all or

any part of its books, records, and accounts outside this state

at any other location in the United States if:

(1) the company has given written notice of this intention to

the commissioner, except as provided by Subsection (b);

(2) the commissioner has not disapproved the notice before the

31st day after the date on which the company gives the notice;

and

(3) the company meets the requirements of this chapter.

(b) A separate notice under this section is not required if:

(1) the domestic company has an agreement to maintain its books

and records outside of the state with an affiliate; and

(2) the agreement:

(A) has been approved under Chapter 823; and

(B) contains substantially all the information required for

notice under this section.

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

2003.

Sec. 803.004. LOCATION AT BRANCH OR AGENCY OFFICE. This chapter

does not apply to the location and maintenance of the normal

books, records, and accounts of a domestic company, including

policyholder and claim files, relating to the business produced

by or through an agency of the company at a branch or agency

office located in the United States, regardless of whether the

agency is an affiliate of the company as provided in Chapter 823.

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

2003.

Sec. 803.005. CONTROL OF BOOKS, RECORDS, ACCOUNTS, AND OFFICES.

(a) The books, records, accounts, or offices of a domestic

company must be under the company's direct supervision,

management, and control.

(b) The ultimate controlling person of an insurance holding

company system affiliated with a domestic company, or the

immediate or intermediate controlling person of the domestic

company, must be domiciled, licensed, or admitted to transact

business in a jurisdiction in the United States.

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

2003.

Sec. 803.006. AGENT FOR SERVICE OF PROCESS. A domestic company

that under this chapter has moved its principal offices and any

part of its books, records, and accounts outside this state and

the controlling person of an affiliated insurance holding company

system must comply with Section 804.102.

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

2003.

Sec. 803.007. EXAMINATION EXPENSES. A credit on or an offset

against the amount of premium taxes to be paid by a domestic

company to the state in a taxable year may not be allowed on:

(1) a fee or examination expense paid to another state; or

(2) an examination expense:

(A) incurred by a representative of the department that is

directly attributable to an examination of the books, records,

accounts, or principal offices of a domestic company located

outside this state; or

(B) paid in a different taxable year.

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

2003.

Sec. 803.008. RULES. The commissioner shall adopt rules to

authorize a domestic company to maintain its books and records

with a nonaffiliated entity other than an agency.

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

2003.

Sec. 803.009. CONFLICTING PROVISIONS. This chapter prevails

over a conflicting provision of any other law of this state,

including:

(1) Chapters 221, 222, and 223;

(2) Sections 401.151, 401.152, 401.155, and 401.156; and

(3) Section 171.0525, Tax Code.

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

2003.

Amended by:

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

730, Sec. 2E.002, eff. April 1, 2009.