Texas Register, Volume 27, Number 4, Pages 529-656, January 25, 2002 Page: 612
529-656 p. ; 28 cm.View a full description of this periodical.
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affirming the insurer's compliance with the provisions of Article
21.49-2B, relating to cancellation and nonrenewal of certain property
and casualty policies;
(7) provisions for providing service to the insurer's Texas
policyholders and claimants;
(8) information on Texas business, including:
(A) for insurers filing total withdrawal plans, the total
annual premium volume and the number of policies and certificates
and covered persons in Texas for each line to be withdrawn;
(B) for insurers filing substantial withdrawal plans, the
total annual premium volume and number of policies and certificates
and covered persons in Texas before substantial withdrawal is effected
and the estimated total annual premium volume and number of policies
and certificates and covered persons in Texas after substantial with-
drawal is effected for each line to be substantially withdrawn;
(C) estimate of what percentage of the Texas market the
withdrawal constitutes;
(D) any information necessary to assist the Commis-
sioner in determining whether a market availability problem is created
by the total or substantial withdrawal, the extent of the problem, and
what market assistance may be needed to alleviate the problem, includ-
ing, but not limited to, the following:
(i) type of location and geographic area subject to
the withdrawal if not statewide (identify type of area such as suburban,
urban, rural, or list specific rating territories) and zip codes if entire
state not included in withdrawal; and
(ii) if applicable, types of risks no longer being cov-
ered (for example, if no longer writing private passenger auto insur-
ance coverage for single-car families or for persons without supporting
business; or if no longer providing homeowner's insurance coverage
for low-value homes, or in areas with high loss-ratios, or in areas with
historically high exposure to natural disasters). The information listed
in this clause is provided for purposes of example only and is not in-
tended to be a comprehensive or exhaustive list.
(E) if an insurer is unable to provide the exact number of
policies and certificates and covered persons, the insurer shall provide
estimates and explain how the estimates were determined;
(9) provisions for identifying policyholders or certificate-
holders of special circumstances;
(10) identification of any third party contracts which may
provide for the continuity of care to enrollees of special circumstances;
(11) number of and estimated amount of all losses out-
standing in Texas, including claims incurred but not reported;
(12) a plan to handle the losses specified in paragraph (11)
of this subsection, including, but not limited to:
(A) identification of what assets will be available for
paying outstanding incurred but not reported claims, claims in the
course of settlement, and associated loss adjustment expenses;
(B) identification of who specifically will administer
the run-off of the business; and
(C) an actuarial opinion certifying that adequate
reserves are available to pay outstanding claims.
(13) if Texas policyholders or certificateholders are to be
reinsured, the filing of a reinsurance agreement pursuant to all statu-
tory and regulatory requirements and, when applicable, the filing of an
assumption certificate;(14) provisions for meeting any applicable statutory obli-
gations, including, but not limited to:
(A) payment of any guaranty fund assessments;
(B) participation in any assigned risk plan, pool, fund,
facility, or joint underwriting arrangement; and
(C) payment of any taxes.
(15) a list of any other products the insurer will continue to
offer in Texas; and
(16) for insurers filing total withdrawal plans, affirmation
that no new business will be solicited by the insurer in this state during
or following the withdrawal period unless the insurer first complies
with 7.1808 of this title (relating to Requirements To Resume Writing
Insurance).
(b) A withdrawing HMO shall file a plan of orderly withdrawal
with the Commissioner that is constructed to protect the interests of the
people of this state. The plan must be signed by at least one officer of
the HMO and, for each line of insurance being withdrawn or having
total annual premium reduced by 75% or more, must contain the fol-
lowing:
(1) identification, in accordance with the line of insurance
designations in 7.1803 of this title, of the line or lines of insurance
being totally withdrawn or affected by having total annual premium
volume reduced by 75% or more;
(2) identification by form number of the evidences of cov-
erage affected by withdrawal;
(3) the dates the HMO intends to begin and complete its
withdrawal;
(4) an explanation of the reasons for the withdrawal;
(5) provisions for notifying all of the affected Texas en-
rollees and contractholders of the dates of the beginning and comple-
tion of the total or substantial withdrawal and how the withdrawal will
affect them, including, but not limited to:
(A) a copy of the notice and an explanation of the man-
ner in which the notice will be provided to enrollees or contractholders;
(B) either an affirmation that such notice will be pro-
vided within 30 days of the approval of the withdrawal plan or a request
to provide the notice at some other specified date or time, and such re-
quest must be approved by the Commissioner; and
(C) identification of any provisions of the Insurance
Code or the Texas Administrative Code under which notice is man-
dated;
(6) provisions for meeting all of the HMO's contractual
obligations, including, but not limited to, notification to all affected
agents of the HMO of the dates the HMO intends to begin and com-
plete the withdrawal;
(7) provisions for providing service to the HMO's Texas
enrollees and providers;
(8) information on Texas business, including:
(A) for HMOs filing total withdrawal plans, the total
annual premium volume and the number of affected contractholders
and enrollees in Texas for each line to be withdrawn;
(B) for HMOs filing substantial withdrawal plans, the
total annual premium volume and the number of affected enrollees and
contractholders in Texas before substantial withdrawal is effected and
the estimated total annual premium volume and number of enrollees27 TexReg 612 January 25, 2002 Texas Register
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Texas. Secretary of State. Texas Register, Volume 27, Number 4, Pages 529-656, January 25, 2002, periodical, January 25, 2002; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth113987/m1/82/: accessed May 5, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.