Texas Insurance Code 822.158 – Determination On Application for Charter Amendment
(a) Not later than the 60th day after the date the application under § 822.155 is filed, the commissioner shall determine whether:
(1) the proposed capital structure of the insurance company meets the requirements of this code;
(2) the officers, directors, and managing head of the insurance company have sufficient insurance experience, ability, standing, and good record to make success of the company probable;
(3) the applicants are acting in good faith;
(4) if the proposed amendment relates to a diminution of the insurance company’s charter powers with respect to the kinds of insurance business in which the company may be engaged, all liabilities incidental to the exercise of the powers to be eliminated have been terminated or wholly reinsured; and
(5) the property involved in an increase of capital or surplus, or both, is:
(A) properly valued; and
(B) in the form authorized by the following provisions, to the extent those provisions apply:
(i) Subchapter B, Chapter 424, other than Sections 424.052, 424.072, and 424.073; and
(ii) § 822.204.
(b) If the commissioner determines that the applicant has not met the requirements set out by Subsection (a), the commissioner shall deny the application. On the applicant’s request, the commissioner shall hold a hearing on a denial. Not later than the 30th day after the date of the applicant’s request for a hearing, the commissioner shall request a hearing date.
Terms Used In Texas Insurance Code 822.158
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Property: means real and personal property. See Texas Government Code 311.005
(c) If the commissioner does not deny the application under Subsection (b), the commissioner shall approve the application and the amendment shall be filed with the department.
(d) Except as provided by Subsection (e), when an amendment to an insurance company’s charter is filed with the department, the amendment is effective.
(e) On approval of a certificate required under § 822.156 and receipt of a fee in the amount determined under Chapter 202, the commissioner shall issue to the directors a certified copy of an amendment authorizing the issuance of shares of stock without par value that is filed under this section. The amendment is effective on issuance of the certified copy of the amendment.