Texas Insurance Code 221.001 – Applicability of Chapter
(a) This chapter applies to an insurer, organization, or concern that receives gross premiums subject to taxation under § 221.002, including a reciprocal or interinsurance exchange that elects to be subject to taxation under this chapter in accordance with § 224.003 and a Lloyd’s plan.
(b) This chapter does not apply to:
(1) a fraternal benefit society, including a fraternal benefit society operating under Chapter 885;
(2) a group hospital service corporation operating under Chapter 842;
(3) a stipulated premium company operating under Chapter 884;
(4) a mutual assessment association, company, or corporation regulated under Chapter 887;
(5) a purely cooperative or mutual fire insurance company carried on by its members solely for the protection of their own property and not for profit, except as provided by § 221.002(b)(13); or
(6) a farm mutual insurance company operating under Chapter 911, unless the company is acting as a fronting insurer.
Terms Used In Texas Insurance Code 221.001
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Property: means real and personal property. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) In this section, “fronting insurer” means a farm mutual insurance company:
(1) issuing an insurance policy that is the result of:
(A) marketing by an insurer not affiliated with the farm mutual insurance company;
(B) an application submitted by a consumer to an insurer not affiliated with the farm mutual insurance company; or
(C) an agreement with an insurer that is not a farm mutual insurance company solely for the purpose of being regulated under Chapter 911; or
(2) that cedes 85 percent or more of the farm mutual insurance company’s direct written premium to one or more nonaffiliated reinsurers.