Journal of the House of Representatives of the Regular Session of the Sixtieth Legislature of the State of Texas, Volume 1 Page: 1,916
1946 p. ; 23 cm.View a full description of this legislative document.
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HOUSE JOURNAL
solvent insurance company authorized
to transact business in this State,
and (2) to the extent that such in-
surance company in conservatorship
is possessed of reserves attributable
to such policies or certificates of in-
surance, the Conservator may trans-
fer to the reinsuring company such
reserves or any portion thereof as
may be required to consummate the
reinsurance of such policies, and any
such reserves so transferred shall not
be deemed a preference of creditors.
The Liquidator of the State Board
of Insurance, or his duly appointed
deputy, may be appointed to serve as
the Conservator. If the Commissioner
of Insurance, however, is satisfied
that such insurance company is not
in condition to continue business in
the interest of its policy or certifi-
cate holders, under the Conservator
as above provided, the Commissioner
of Insurance shall give notice to the
Attorney General who shall thereupon
apply to any Court in Travis County,
Texas, having jurisdiction thereof
for leave to file a suit in the nature
of quo warranto to forfeit the char-
ter of such insurance company or to
require it to comply with law or to
satisfy the Commissioner of Insurance
as to its solvency, and to satisfy the
requirement that its condition is such
as to render the continuance of its
business not hazardous to the public
or to the holders of its policies or
certificates of insurance. It shall be
in the discretion of the Commissioner
of Insurance to determine whether
or not he will operate the insurance
company through a Conservator, as
provided above, or report it to the
Attorney General, as herein provided.
When all the policies of an insurance
company are reinsured or terminated,
and all of its affairs concluded, as
herein provided, the Commissioner of
Insurance shall report the same to
the Attorney General, who shall take
such action as may be necessary to
effect the forfeiture or cancellation
of the charter of the insurance com-
pany so reinsured and liquidated.
Where the Commissioner of Insur-
ance lends his approval to the mer-
ger, consolidation or reinsurance of
all the policies of one insurance com-
pany with that of another, the same
shall be reported to the Attorney Gen-
eral who shall proceed to effect the
forfeiture or cancellation of the char-
ter of the insurance company from
which the policies were merged, con-solidated or reinsured, in the same
manner as is provided for the charters
of companies totally reinsured or
liquidated. The cost incident to the
Supervisor's and Conservator's ser-
vice shall be fixed and determined by
the Commissioner of Insurance and
shall be a charge against the assets
and funds of the insurance company
to be allowed and paid as the Com-
missioner of Insurance may deter-
mine.
"Section 6. Out Of State Companies.
This Article shall apply to insurance
companies doing an insurance busi-
ness but not domiciled in the State
of Texas, whether authorized to do
business in this State or not. In the
event that the Commissioner of In-
surance makes any of the findings
provided for in Section 3 of this
Article concerning any such insurance
company or finds that any such in-
surance company is not possessed of
the minimum surplus or capital or
capital stock required by the Insur-
ance Code of the State of Texas for
similar type domestic companies, or
if a Conservator, rehabilitator, re-
ceiver, or liquidator has been appoint-
ed in the state of domicile, or if
the insurance company gives its con-
sent as defined herein, the Commis-
sioner of Insurance shall have the
same power and jurisdiction to ap-
point a Supervisor or Conservator as
to the assets of such out of state in-
surer located in this State as provid-
ed herein for domestic insurance
companies. In the event that any such
out of state insurance company shall
fail to comply with the provisions
of Section 4 of this Article with res-
pect to any of its assets or policies
located within this State during any
thirty (30) day period of supervision,
such act or violation shall constitute
sufficient grounds for the immediate
revocation of its certificate of author-
ity to do business in this State and
for the immediate appointment of a
Conservator to take charge of its as-
sets located within this State. Any
Supervisor or Conservator appointed
with respect to assets located in this
State belonging to an out of state in-
surance company shall have all of
the powers and authority provided
for in Section 5 of this Article with
respect to such assets located in this
State and, in addition, may reinsure
all or any part of such insurance
company's policyholders or certificate1916
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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/m1/1920/: accessed April 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.