Texas Insurance Code 823.101 – Standards for Transaction Within an Insurance Holding Company System
Current as of: 2024 | Check for updates
|
Other versions
(a) This section applies only to a material transaction within an insurance holding company system to which an insurer subject to a registration under § 823.052 is a party.
(b) The terms of the transaction shall be fair and equitable.
Terms Used In Texas Insurance Code 823.101
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Rule: includes regulation. See Texas Government Code 311.005
(b-1) An agreement, including an agreement for cost-sharing, services, or management, must include all provisions required by rule of the commissioner.
(c) The charges or fees for services performed shall be reasonable.
(d) The books, accounts, and records of each party to the transaction shall be maintained so that the precise nature and details of the transaction are clearly and accurately disclosed.
(e) The expenses incurred and payments received relating to the transaction shall be allocated to the registered insurer on an equitable basis in conformity with customary insurance accounting principles consistently applied.
(f) After a registered insurer pays a dividend or makes a distribution to a holding company or shareholder affiliate of the insurer, the insurer’s policyholders’ surplus shall be reasonable in relation to the insurer’s outstanding liabilities and adequate to the insurer’s financial needs.