Journal of the House of Representatives of the Regular Session of the Sixtieth Legislature of the State of Texas, Volume 1 Page: 1,914
1946 p. ; 23 cm.View a full description of this legislative document.
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HOUSE JOURNAL
actions in respect of an insurer or
insurance. And in conjunction with
existing law, the rationale is effected
in the provision herein for a generally
ordered sequence, and review at each
such step, of supervision, concurrent
conservation and rehabilitation (in-
cluding reinsurance), and, as may at
any time or ultimately be indicated
or determined, cessation of the con-
servation by accomplishment of re-
habilitation or by receivership and
liquidation.
"Section 2. Definition, Application
And Scope. As used in this Article,
the following words, terms and
phrases (in single quotes in this sec-
tion of the Article but not in quotes
in other sections) include the mean-
ings, significance or application de-
scribed in this section, except as an-
other meaning is clearly requisite
from the purposes or is otherwise
clearly indicated by the context.
"(a) 'Insurance Company' (used
interchangeably with 'insurer') is any
person, organization, association or
company, (authorized or unauthor-
ized, admitted or nonadmitted acting
as an insurer, or as principal or agent
of an insurer, including stock com-
panies, reciprocals or interinsurance
exchanges, Lloyds associations, fra-
ternal benefit societies, stipulated
premium companies, and mutual com-
panies of all kinds, including state-
wide mutual assessment corporations,
local mutual aids, burial associations,
and county mutual insurance com-
panies and farm mutual insurance
companies.
"(b) In respect of an insurance
company or insurer, 'insolvent' or
'insolvency' and the phrases in
further identity of insurer delin-
quency and threatened insurer delin-
quency, mean and include, and the
conditions to which this Article is
applicable include but are not limited
to, any one or more of the following
circumstances or conditions:
"(1) if an insurance company's re-
quired surplus, capital, or capital
stock is impaired to an extent pro-
hibited by law, or
"(2) if an insurance company con-
tinues to write new business when
it is not possessed of the surplus,
capital or capital stock which is re-quired of it by law to permit it to
do so, or
"(3) if the business of any such
insurance company is being conduct-
ed fraudulently, or
"(4) if any such insurance company
attempts to dissolve or liquidate with-
out first having made provisions, sat-
isfactory to the Commissioners of
Insurance, for liabilities arising from
policies of insurance issued by such
company.
"(c) 'Exceeded its Powers' includes
and means but is not limited to the
following circumstances:
"(1) if an insurance company has
refused to permit examination of its
books, papers, accounts, records, or
affairs by the Commissioner of In-
surance, his deputy, or duly commis-
sioned examiners; or if any insurance
company, organized in the State of
Texas, has removed from the State
such books, papers, accounts or rec-
ords necessary for an examination of
such insurance company, or
"(2) if an insurance company has
failed to promptly answer inquiries
authorized by Article 1.25 of this
Code, or
"(3) if an insurance company has
neglected or refused to observe an
order of the Commissioner to make
good, within the time prescribed by
law, any prohibited deficiency in its
capital, capital stock, or surplus, or
"(4) if an insurance company with-
out first having obtained written ap-
proval of the Commissioner has by
contract or otherwise: (i) totally re-
insured its entire outstanding busi-
ness, or (ii) merged or consolidated
substantially its entire property or
business with another insurer, or
"(5) if any insurance company is
continuing to write business after its
license has been revoked or suspended.
"(d) 'Consent,' as used in this Act,
includes and means agreement to ei-
ther supervision or conservatorship
by the insurance company.
"Section 3. If upon examination or
at any other time it appears to or is
the opinion of the Commissioner of
Insurance that any insurance com-
pany is insolvent, or its condition is
such to render the continuance of its1914
I
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Texas. Legislature. House of Representatives. Journal of the House of Representatives of the Regular Session of the Sixtieth Legislature of the State of Texas, Volume 1, legislative document, 1967; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth193874/m1/1918/: accessed April 19, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.