Texas Insurance Code 823.151 – Presumption of Control
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(a) Control of an entity is presumed if:
(1) a person or a person and members of the person’s immediate family, directly or indirectly, own, control, or hold with the power to vote 10 percent or more of the voting securities or authority of the entity; or
(2) a person who is not a corporate officer or director of the entity holds proxies representing 10 percent or more of the voting securities or authority of the entity.
(b) Control of a Lloyd’s plan is presumed if a person is designated as an attorney-in-fact for the insurer under Chapter 941.
Terms Used In Texas Insurance Code 823.151
- Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) Control of a reciprocal or interinsurance exchange is presumed if a person is designated as an attorney-in-fact for the exchange under Chapter 942.
(d) A presumption under this section may be rebutted by a showing made in the manner provided by § 823.010 that control does not exist in fact and that the person rebutting the presumption is complying with Sections 823. 154, 823.155, 823.159, and 823.160.
(e) For purposes of this section, the members of a person’s immediate family are:
(1) the person’s spouse, father, mother, children, brothers, sisters, and grandchildren;
(2) the father, mother, brothers, and sisters of the person’s spouse; and
(3) the spouse of the person’s child, brother, sister, mother, father, or grandparent.