Section 6.1 - Definitions(a) The definitions in Insurance Code § 964.001 apply to this chapter.(b) The following words and terms when used in this chapter have the following meanings unless the context clearly indicates otherwise: (1) Administrative services--Insurance-related services necessary for the operation of a captive insurance company, including: claims adjustment; underwriting; accounting; investment advice; risk management; regulatory compliance; compiling statistics and preparing premium, loss, and tax reports; maintaining books and records; handling reinsurance matters; and processing premiums.(2) Annual report--The annual report includes the following information, as required in the Texas Captive Annual Report form and instructions adopted under § 6.401 of this title: (A) the captive insurance company's financial statements, including disclosures and supporting schedules;(B) an actuarial opinion completed by a qualified actuary that provides an opinion relating to policy reserves and other actuarial items for risks insured; and(C) financial projections every third year, as required under § 6.406 of this title.(3) Captive management company--A legal entity, not an individual, that has oversight responsibility for providing any administrative service to a captive insurance company.(4) Certificate of filing--Evidence of the acceptance and filing of an instrument authorized to be filed with the Texas Secretary of State under the Business Organizations Code, Insurance Code Chapter 964, and this chapter.(5) Commissioner--The Texas Commissioner of Insurance.(6) Department--The Texas Department of Insurance.(7) General partnership--The term includes a general partnership designated as a limited liability partnership. The term does not include a limited partnership, including a limited partnership designated as a limited liability partnership.(8) Governing body--The individuals designated by the captive insurance company, or attorney in fact, who comprise the ultimate decision-making body of a captive insurance company, or attorney in fact, including a board of directors or officers of the captive insurance company, or attorney in fact. This definition applies to the use of the term in this chapter and the relationship of the captive insurance company, or attorney in fact, to the department. To the extent that the term has a different meaning under the Business Organizations Code related to the formation of entities and filings with the Texas Secretary of State, this definition does not apply.(9) Licensed attorney--A person licensed and eligible to practice law.(10) Qualified accountant--An independent certified public accountant or accounting firm that meets the requirements of Insurance Code § 401.011.(11) Qualified actuary--A person who meets the basic education, experience, and continuing education requirements set forth in the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States, promulgated by the American Academy of Actuaries, and is either: (A) a member of the American Academy of Actuaries who has demonstrated actuarial competence to the satisfaction of the Commissioner; or(B) a member of the Casualty Actuarial Society.(12) Qualified United States financial institution--An institution that: (A) is organized under the laws of the United States or any state of the United States;(B) is regulated, supervised, and examined by a federal or state authority that has regulatory authority over banks and trust companies; and(C) is approved by the Commissioner.(13) Service providers--Captive management companies that provide administrative services and individuals or entities providing legal, actuarial, or auditing services.(14) Texas Captive Annual Report--The forms, instructions, and requirements adopted by reference in § 6.401 of this title that are necessary for completing the annual report and other submissions under this chapter.(15) Ultimate controlling person--Person or persons who control a captive insurance company and who are not controlled by another person.28 Tex. Admin. Code § 6.1
The provisions of this §6.1 adopted to be effective April 27, 2014, 39 TexReg 3232; Amended by Texas Register, Volume 43, Number 51, December 21, 2018, TexReg 8434, eff. 12/30/2018