CHAPTER 983. REDOMESTICATION OF INSURERS AND HEALTH MAINTENANCE ORGANIZATIONS
INSURANCE CODE
TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES
SUBTITLE I. COMPANIES THAT ARE NOT ORGANIZED IN TEXAS
CHAPTER 983. REDOMESTICATION OF INSURERS AND HEALTH MAINTENANCE
ORGANIZATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 983.001. DEFINITION. In this chapter, "redomestication"
means a change in domicile of an insurer or health maintenance
organization by merger, consolidation, or another legal method.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 983.002. RULES. The commissioner may adopt rules as
necessary to implement this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
SUBCHAPTER B. REDOMESTICATION PROCESS
Sec. 983.051. REDOMESTICATION: FOREIGN TO DOMESTIC. (a) An
insurer or health maintenance organization that is organized
under the laws of another state and authorized to write insurance
or provide a health care plan in this state may redomesticate to
this state if:
(1) the entity amends or restates its articles of incorporation
to comply with each requirement of this code relating to the
organization and authorization of a domestic entity of the same
type; and
(2) the commissioner approves the redomestication.
(b) An insurer or health maintenance organization that
redomesticates under this section is:
(1) considered to be domiciled in this state; and
(2) entitled to a certificate of authority to engage in the
business of insurance or the business of a health maintenance
organization in this state as a domestic insurer or health
maintenance organization, as applicable, without interruption of
its authority to engage in business in this state.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 983.052. REDOMESTICATION: DOMESTIC TO FOREIGN. (a) An
insurer or health maintenance organization that is organized
under the laws of this state and authorized to write insurance or
provide a health care plan in another state may redomesticate to
that other state if the commissioner and the supervising
regulatory official of the proposed state of domicile approve the
redomestication.
(b) On the effective date of redomestication, the entity:
(1) ceases to be a domestic insurer or health maintenance
organization, as applicable; and
(2) is a qualified foreign insurer or health maintenance
organization, as applicable, in this state without interruption
of its authority to engage in the business of insurance or the
business of a health maintenance organization in this state.
(c) The commissioner may approve a proposed redomestication
under this section unless the commissioner determines that:
(1) the proposed redomestication would not be in the interest of
this state's policyholders or enrollees; or
(2) the entity cannot qualify for a certificate of authority in
this state as a foreign insurer or health maintenance
organization, as applicable.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 983.053. REDOMESTICATION: FOREIGN TO FOREIGN. (a) An
insurer or health maintenance organization that is organized
under the laws of another state and authorized to engage in the
business of insurance or the business of a health maintenance
organization in this state may redomesticate to another foreign
state without interruption of its authority to engage in business
in this state as a foreign insurer or health maintenance
organization, as applicable, if:
(1) the entity:
(A) amends or restates its articles of incorporation as required
by law; and
(B) provides proper notice to the commissioner; and
(2) the commissioner:
(A) determines that:
(i) the proposed redomestication would not, on the effective
date of redomestication, result in a reduction in the amount of
the entity's capital or surplus below the amount required for
authorization as a foreign insurer or health maintenance
organization, as applicable;
(ii) there would not be a material change in the lines of
insurance to be written or health care plan provided by the
entity;
(iii) the proposed redomestication has been approved by the
supervising regulatory officials of both the current and proposed
state of domicile;
(iv) the proposed redomestication would not be detrimental to
the interest of the insurer's policyholders or the health
maintenance organization's enrollees in this state; and
(v) the proposed redomestication is not related to a change in
the control of the entity, unless the commissioner has given
prior approval to the change in control; and
(B) approves the redomestication.
(b) Subsection (a)(2)(A)(v) does not apply if the
redomesticating insurer or health maintenance organization is to
become a parent, subsidiary, or affiliate of a qualified insurer
or health maintenance organization, as applicable, that has held
a certificate of authority in this state for at least seven years
before the date of the redomestication.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 983.054. NOTICE AND FILING REQUIRED. An insurer or health
maintenance organization shall:
(1) notify the commissioner of the details of a proposed
redomestication; and
(2) promptly file with the commissioner any amendments to its
corporate documents filed or required to be filed with the
commissioner.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 983.055. FORMS OF INSURANCE POLICY OR EVIDENCE OF COVERAGE.
(a) A redomesticated insurer or health maintenance organization
shall file with the commissioner a new insurance policy or
evidence of coverage form, or an endorsement to an approved
policy or evidence of coverage form, that implements the
redomestication.
(b) The insurer or health maintenance organization, under
conditions approved by the commissioner and with an appropriate
endorsement, may continue to use an insurance policy or evidence
of coverage form that was approved before the redomestication.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 983.056. OUTSTANDING INSURANCE POLICY OR EVIDENCE OF
COVERAGE: CHANGE OF NAME. A redomesticating insurer or health
maintenance organization that changes its name shall endorse each
outstanding insurance policy or evidence of coverage with the new
name.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 983.057. ISSUANCE OF AMENDED CERTIFICATE OF AUTHORITY. The
commissioner shall issue an amended certificate of authority on
approval of a redomestication.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
SUBCHAPTER C. EFFECT OF REDOMESTICATION
Sec. 983.101. CONTINUATION OF BUSINESS. (a) If a
redomesticating insurer or health maintenance organization
remains qualified to engage in the business of insurance or the
business of a health maintenance organization in this state, the
following continue in effect after redomestication:
(1) the approved agents' appointments and licenses;
(2) the approved insurance policy forms and provider contracts;
(3) the authorized premium rates;
(4) the quality of care certificates; and
(5) any other relevant item that exists on the effective date of
the redomestication.
(b) Each outstanding insurance policy, evidence of coverage,
provider contract, or quality of care certificate of a
redomesticating insurer or health maintenance organization
continues in effect after redomestication.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.
Sec. 983.102. EFFECT ON ADMITTED ASSETS. Except as provided by
other law, the admitted assets of a redomesticating insurer or
health maintenance organization that qualify, on the effective
date of the redomestication, as admitted assets under this code
continue to qualify as admitted assets after the redomestication.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1,
2003.