CHAPTER 983. REDOMESTICATION OF INSURERS AND HEALTH MAINTENANCE ORGANIZATIONS - Texas Statutes

INSURANCE CODE

TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES

SUBTITLE I. COMPANIES THAT ARE NOT ORGANIZED IN TEXAS

CHAPTER 983. REDOMESTICATION OF INSURERS AND HEALTH MAINTENANCE

ORGANIZATIONS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 983.001. DEFINITION. In this chapter, "redomestication"

means a change in domicile of an insurer or health maintenance

organization by merger, consolidation, or another legal method.

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

2003.

Sec. 983.002. RULES. The commissioner may adopt rules as

necessary to implement this chapter.

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

2003.

SUBCHAPTER B. REDOMESTICATION PROCESS

Sec. 983.051. REDOMESTICATION: FOREIGN TO DOMESTIC. (a) An

insurer or health maintenance organization that is organized

under the laws of another state and authorized to write insurance

or provide a health care plan in this state may redomesticate to

this state if:

(1) the entity amends or restates its articles of incorporation

to comply with each requirement of this code relating to the

organization and authorization of a domestic entity of the same

type; and

(2) the commissioner approves the redomestication.

(b) An insurer or health maintenance organization that

redomesticates under this section is:

(1) considered to be domiciled in this state; and

(2) entitled to a certificate of authority to engage in the

business of insurance or the business of a health maintenance

organization in this state as a domestic insurer or health

maintenance organization, as applicable, without interruption of

its authority to engage in business in this state.

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

2003.

Sec. 983.052. REDOMESTICATION: DOMESTIC TO FOREIGN. (a) An

insurer or health maintenance organization that is organized

under the laws of this state and authorized to write insurance or

provide a health care plan in another state may redomesticate to

that other state if the commissioner and the supervising

regulatory official of the proposed state of domicile approve the

redomestication.

(b) On the effective date of redomestication, the entity:

(1) ceases to be a domestic insurer or health maintenance

organization, as applicable; and

(2) is a qualified foreign insurer or health maintenance

organization, as applicable, in this state without interruption

of its authority to engage in the business of insurance or the

business of a health maintenance organization in this state.

(c) The commissioner may approve a proposed redomestication

under this section unless the commissioner determines that:

(1) the proposed redomestication would not be in the interest of

this state's policyholders or enrollees; or

(2) the entity cannot qualify for a certificate of authority in

this state as a foreign insurer or health maintenance

organization, as applicable.

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

2003.

Sec. 983.053. REDOMESTICATION: FOREIGN TO FOREIGN. (a) An

insurer or health maintenance organization that is organized

under the laws of another state and authorized to engage in the

business of insurance or the business of a health maintenance

organization in this state may redomesticate to another foreign

state without interruption of its authority to engage in business

in this state as a foreign insurer or health maintenance

organization, as applicable, if:

(1) the entity:

(A) amends or restates its articles of incorporation as required

by law; and

(B) provides proper notice to the commissioner; and

(2) the commissioner:

(A) determines that:

(i) the proposed redomestication would not, on the effective

date of redomestication, result in a reduction in the amount of

the entity's capital or surplus below the amount required for

authorization as a foreign insurer or health maintenance

organization, as applicable;

(ii) there would not be a material change in the lines of

insurance to be written or health care plan provided by the

entity;

(iii) the proposed redomestication has been approved by the

supervising regulatory officials of both the current and proposed

state of domicile;

(iv) the proposed redomestication would not be detrimental to

the interest of the insurer's policyholders or the health

maintenance organization's enrollees in this state; and

(v) the proposed redomestication is not related to a change in

the control of the entity, unless the commissioner has given

prior approval to the change in control; and

(B) approves the redomestication.

(b) Subsection (a)(2)(A)(v) does not apply if the

redomesticating insurer or health maintenance organization is to

become a parent, subsidiary, or affiliate of a qualified insurer

or health maintenance organization, as applicable, that has held

a certificate of authority in this state for at least seven years

before the date of the redomestication.

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

2003.

Sec. 983.054. NOTICE AND FILING REQUIRED. An insurer or health

maintenance organization shall:

(1) notify the commissioner of the details of a proposed

redomestication; and

(2) promptly file with the commissioner any amendments to its

corporate documents filed or required to be filed with the

commissioner.

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

2003.

Sec. 983.055. FORMS OF INSURANCE POLICY OR EVIDENCE OF COVERAGE.

(a) A redomesticated insurer or health maintenance organization

shall file with the commissioner a new insurance policy or

evidence of coverage form, or an endorsement to an approved

policy or evidence of coverage form, that implements the

redomestication.

(b) The insurer or health maintenance organization, under

conditions approved by the commissioner and with an appropriate

endorsement, may continue to use an insurance policy or evidence

of coverage form that was approved before the redomestication.

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

2003.

Sec. 983.056. OUTSTANDING INSURANCE POLICY OR EVIDENCE OF

COVERAGE: CHANGE OF NAME. A redomesticating insurer or health

maintenance organization that changes its name shall endorse each

outstanding insurance policy or evidence of coverage with the new

name.

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

2003.

Sec. 983.057. ISSUANCE OF AMENDED CERTIFICATE OF AUTHORITY. The

commissioner shall issue an amended certificate of authority on

approval of a redomestication.

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

2003.

SUBCHAPTER C. EFFECT OF REDOMESTICATION

Sec. 983.101. CONTINUATION OF BUSINESS. (a) If a

redomesticating insurer or health maintenance organization

remains qualified to engage in the business of insurance or the

business of a health maintenance organization in this state, the

following continue in effect after redomestication:

(1) the approved agents' appointments and licenses;

(2) the approved insurance policy forms and provider contracts;

(3) the authorized premium rates;

(4) the quality of care certificates; and

(5) any other relevant item that exists on the effective date of

the redomestication.

(b) Each outstanding insurance policy, evidence of coverage,

provider contract, or quality of care certificate of a

redomesticating insurer or health maintenance organization

continues in effect after redomestication.

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

2003.

Sec. 983.102. EFFECT ON ADMITTED ASSETS. Except as provided by

other law, the admitted assets of a redomesticating insurer or

health maintenance organization that qualify, on the effective

date of the redomestication, as admitted assets under this code

continue to qualify as admitted assets after the redomestication.

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

2003.