Texas Insurance Code 401.107 – Registration of Contract Examiners
(a) A person with whom another state contracts to perform any examination initiated by the other state of an insurer domiciled in this state shall register with and provide the following information to the department’s chief examiner:
(1) the person’s name;
(2) if the person is not an individual, the identity of each examiner or other person who will perform any part of the examination;
(3) the name of the state that contracted with the person;
(4) the identity of the insurer to be examined;
(5) a description of each issue that the person has been contracted to examine;
(6) an estimate of the examination costs to be charged to the insurer to be examined;
(7) a copy of any contract between the person and the state regulatory body that initiated the examination and a letter authorizing the examination; and
(8) a list of the previous examinations conducted on the same insurer on behalf of any state within the last three years.
(a-1) On accepting a person’s registration under Subsection (a), the department shall send written confirmation of the acceptance to:
(1) the person;
(2) the insurer to be examined; and
(3) the state regulatory body that initiated the examination.
Terms Used In Texas Insurance Code 401.107
- Contract: A legal written agreement that becomes binding when signed.
- 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
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(b) It is a violation of this code for a person to accept compensation from multiple states for the same examination, if doing so results in duplicative costs to the insurer being examined. It is not a violation of this code for:
(1) an examiner to conduct an examination of an insurer for the benefit of multiple states in a coordinated examination; and
(2) the examiner to accept compensation from the states participating in the coordinated examination to reduce the examination costs to the insurer being examined.