CHAPTER 984. MEXICAN CASUALTY INSURANCE COMPANIES - Texas Statutes

INSURANCE CODE

TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES

SUBTITLE I. COMPANIES THAT ARE NOT ORGANIZED IN TEXAS

CHAPTER 984. MEXICAN CASUALTY INSURANCE COMPANIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 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.

Sec. 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

Sec. 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.

Sec. 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

Sec. 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.

Sec. 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.

Sec. 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

Sec. 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.

Sec. 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.

Sec. 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

Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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.