28 TAC §7.69
The Texas Department of Insurance proposes new §7.69,
concerning the adoption by reference of reporting forms, electronic data filings
with the National Association of Insurance Commissioners (NAIC) and instructions
to be used by insurers, health maintenance organizations (HMOs), nonprofit
legal service corporations, Texas Health Insurance Risk Pool, Texas Fair Plan
Association and Texas Windstorm Insurance Association. The reporting forms
include the 2006 annual and the 2006 quarterly statement blanks, stockholder
information supplement, management discussion and analysis, supplemental compensation
exhibit, overhead assessment exemption form for insurance company examination
expenses, analysis of surplus, separate accounts, supplemental information
for county mutuals and HMOs, release of contributions, reserve summary, inventory
of insurance in force, and summary of insurance in force. The insurers and
other regulated entities will use these forms to report their 2006 calendar
year financial condition and business operations and activities. The information
provided by the completion of the forms is necessary to allow the Department
to monitor the solvency, business activities, and statutory compliance of
the insurers and the other entities regulated by the Department. The proposed
new section adopts by reference the NAIC 2006 annual and quarterly statement
blanks, related instructions, and other reporting forms and instructions for
reporting the financial condition, business operations and activities of insurance
companies and other entities regulated by the Department. The proposed new
section also requires insurance companies and other entities regulated by
the Department to file such annual and quarterly statements and other reporting
forms with the Department and/or the NAIC as directed. The proposed new section
also defines terms relevant to the statement blanks and reporting forms and
provides the dates by which certain reports are to be filed. Proposed subsection
(a) explains the purpose of the section and adopts by reference the forms
described in the section. Proposed subsection (b) provides that the term "Texas
Edition" refers to the blanks and forms promulgated by the Commissioner. Proposed
subsection (c) specifies the hierarchy of laws in the event of a conflict
between the Insurance Code, this new section, and other Department regulations
and the NAIC instructions specified in the new section. Proposed subsections
(d) - (l) describe the forms, instructions and filing requirements for the
various types of insurers and other regulated entities. Proposed subsection
(m) provides that the Department may request financial reports other than
those specified in this section. The forms and instructions are available
for inspection in the office of the Financial Analysis and Examination Division
of the Texas Department of Insurance, William P. Hobby Jr. State Office Building,
333 Guadalupe, Building 3, Third Floor, Austin, Texas. The NAIC forms and
instructions may also be reviewed at www.naic.org. The new section will replace
the existing §7.69, concerning the adoption of the 1999 annual and 2000
quarterly statements, other reporting forms, and diskettes or alternative
electronic method of filing, which is proposed for repeal and also published
in this issue of the Texas Register.
Betty Patterson, Senior Associate Commissioner, Financial Program, has
determined that, for the first five years the proposed section will be in
effect, there will be no fiscal implications for state or local government
as a result of enforcing or administering the section. There will be no effect
on local employment or the local economy as a result of the proposal.
Ms. Patterson also has determined that, for each year of the first five
years the proposed section is in effect, the public benefits anticipated as
a result of enforcing this section are the ability of the Department to provide
financial information to the public and other regulatory bodies as requested,
and to monitor the financial condition of insurers and other regulated entities
licensed in Texas to better assure financial solvency. The probable economic
cost to persons required to comply with the section depends on several factors.
Generally, each insurer or other regulated entity is required by statute to
provide the Department with various annual reports on its operations. Insurance
Code §802.055 provides that an insurance company shall pay all costs
of preparing and furnishing to the NAIC the information required under Insurance
Code §802.052, including any related filing fees. The fees associated
with each company to file electronically with the NAIC database can range
from $247 to $67,000 per company depending on the amount of premium base,
with a limit for insurer groups of $201,000. The cost of preparing and filing
the annual statement is attributable to statute and not the proposed section.
Additionally, the reports and forms generally request information that is
already captured or created by the insurer or other regulated entity as necessary
to its business operations; therefore, the only cost involved is the transfer
of that information from the company's records to the report or form. The
cost of software to prepare the financial statements is approximately $2,000
for a single company. The cost of software may be greater or less depending
on the amount charged by the vendor and any extra services that are agreed
to between the company and the vendor. Such estimated cost may be lower based
upon factors such as the type of company (e.g., life, accident and health,
or property and casualty); the size of the company (e.g., large or small);
and the type of business written by the company. The Department assumes that
micro, small and large businesses will utilize employees who are familiar
with the records of the insurer or health maintenance organization and accounting
practices in general. Such individuals are estimated to be compensated from
$17 to $30 per hour based on information obtained by the Department. On the
basis of cost per hour of labor, there is no expected difference in cost of
compliance between micro, small and larger businesses affected by this section.
The Department finds that it is neither legal nor feasible to reduce the effect
of the proposed section on micro or small insurers subject to the section
because the information required by the forms is necessary for the Department
to implement its statutorily required functions to effectively regulate and
monitor the activities of insurers and other regulated entities licensed in
Texas, regardless of their size.
The Department has determined that no private real property interests are
affected by this proposal and that this proposal does not restrict or limit
an owner's right to property that would otherwise exist in the absence of
government action and, therefore, does not constitute a taking or require
a taking impact assessment under the Government Code §2007.043.
To be considered, written comments on the proposal must be submitted no
later than 5:00 p.m. on April 16, 2007, to Gene C. Jarmon, General Counsel
and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box
149104, Austin, Texas 78714-9104. An additional copy of the comments should
be submitted simultaneously to Betty Patterson, Senior Associate Commissioner,
Financial Program, Mail Code 305-2A, Texas Department of Insurance, P.O. Box
149104, Austin, Texas 78714-9104. Any request for a public hearing on the
proposal should be submitted separately to the Office of the Chief Clerk before
the close of the public comment period. If a hearing is held, oral and written
comments presented at the hearing will be considered.
The new section is proposed under the Insurance Code §§802.001
- 802.003 and 802.051 - 802.056, which authorize the Commissioner to make
changes in the forms of the annual statements required of insurance companies
of any kind, as shall seem best adapted to elicit a true exhibit of their
condition and methods of transacting business, and require certain insurers
to make filings with the National Association of Insurance Commissioners;
Articles 21.49 (revised as Chapter 2210 effective April 1, 2007), 21.49A (revised
as Chapter 2211 effective April 1, 2007), and 21.54 (revised as Chapter 2201
effective April 1, 2007) and §§841.255, 842.003, 842.201, 842.202,
843.151, 843.155, 861.254, 861.255, 862.001, 862.003, 882.001, 882.003, 883.002,
883.204, 884.256, 885.401, 885.403 - 885.406, 887.009, 887.060, 887.401 -
887.407, 911.001, 911.304, 912.002, 912.201 - 912.203, 912.301, 941.252, 942.201,
961.002, 961.003, 961.052, 961.202, 982.004, 982.251 - 982.254, 982.101, 982.103,
984.101 - 984.103, 984.153, 984.201, 984.202, 1506.057, 2551.001, and 2551.152
which require the filing of financial reports and other information by insurers
and other regulated entities and provide specific rulemaking authority to
the Commissioner relating to those insurers and other regulated entities;
§§982.001, 982.002, 982.004, 982.052, 982.102 - 982.104, 982.106,
982.108, 982.110 - 982.112, 982.201 - 982.204, 982.251 - 982.255, and 982.302
- 982.306 which provide the conditions under which foreign insurers are permitted
to do business in this state and require foreign insurers to comply with the
provisions of the Insurance Code; §§844.001-844.005, 844.051-844.054,
and 844.101 which authorize the Commissioner to adopt rules to implement the
regulation of nonprofit health corporations holding a certificate of authority
under the Insurance Code, Title 2, Chapter 844; Article 21.39 (revised as
§421.001 effective April 1, 2007) which requires insurers to establish
adequate reserves and provides for the adoption of each current formula for
establishing reserves applicable to each line of insurance; §32.041 which
requires the Department to furnish the statement blanks and other reporting
forms necessary for companies to comply with the filing requirements; and
§36.001 which provides that the Commissioner of Insurance may adopt any
rules necessary and appropriate to implement the powers and duties of the
Texas Department of Insurance under the Insurance Code and other laws of this
state.
The following articles and sections of the Insurance Code will be affected
by this proposed section: Articles 21.39 (revised as §421.001 effective
April 1, 2007) and 21.54 (revised as Chapter 2201 effective April 1, 2007),
§§32.041, 802.001 - 802.003, 802.051 - 802.056, 841.255, 842.003,
842.201, 842.202, 843.151, 843.155, 844.001 - 844.005, 844.051 - 844.054,
844.101, 861.254, 861.255, 862.001, 862.003, 882.001, 882.003, 883.002, 883.204,
884.256, 885.401, 885.403 - 885.406, 886.107, 887.009, 887.060, 887.401 -
887.407, 911.001, 911.304, 912.002, 912.201 - 912.203, 912.301, 941.252, 942.201,
961.002, 961.003, 961.052, 961.202, 982.001, 982.002, 982.004, 982.052, 982.101,
982.102, 982.103, 982.104, 982.106, 982.108, 982.110 - 982.112, 982.251 -
982.255, 982.302 - 982.306, 984.153, 984.201, 984.202, 1506.057, 2551.001,
and 2551.152.
§7.69.Requirements for Filing the 2006 Quarterly and 2006 Annual Statements, Other Reporting Forms, and Electronic Data Filings, with the Texas Department of Insurance and the NAIC.
(a)
Scope. This section specifies the requirements for insurers
and other regulated entities for filing the 2006 quarterly statements, 2006
annual statement, other reporting forms, and electronic data filings, with
the department and the National Association of Insurance Commissioners (NAIC)
necessary to report information concerning the financial condition and business
operations and activities of insurers. This section applies to all insurers
and certain other regulated entities authorized to do the business of insurance
in this state and includes, but is not limited to, life insurers; accident
insurers; life and accident insurers; life and health insurers; accident and
health insurers; life, accident and health insurers; mutual life insurers;
stipulated premium insurers; group hospital service corporations; fire insurers;
fire and marine insurers; U.S. branches of alien insurers; Mexican casualty
insurers; general casualty insurers; fire and casualty insurers; mutual insurers
other than life; statewide mutual assessment companies; local mutual aid associations;
mutual burial associations; exempt associations; county mutual insurers; Lloyd's
plans; reciprocal and inter-insurance exchanges; domestic risk retention groups;
domestic joint underwriting associations; title insurers; fraternal benefit
societies; farm mutual insurers; health maintenance organizations; nonprofit
health corporations; nonprofit legal services corporations; the Texas Health
Insurance Risk Pool; the Texas Mutual Insurance Company; the Texas Windstorm
Insurance Association; and the Texas FAIR Plan Association. The commissioner
adopts by reference the 2006 quarterly statement blanks, the 2006 annual statement
blanks and the related instruction manuals published by the NAIC, and other
supplemental reporting forms specified in this section. The forms are available
from the Texas Department of Insurance, Financial Analysis and Examination
Division, Mail Code 303-1A, P.O. Box 149104, Austin, Texas 78714-9104. The
NAIC annual and quarterly statement blanks and other NAIC supplemental reporting
forms can be printed or filed electronically using annual statement software
available from vendors. Insurers and other regulated entities shall properly
report to the department and the NAIC by completing, in accordance with applicable
instructions, the appropriate hard copy annual and quarterly statement blanks,
other reporting forms, and electronic data filings.
(b)
Definition. In this section "Texas Edition" refers to the
blanks and forms promulgated by the commissioner.
(c)
Conflicts with other laws. In the event of a conflict between
the Insurance Code, any currently existing department rule, form, instructions,
or any specific requirement of this section and the NAIC instructions listed
in this section, the Insurance Code, the department rule, form, instruction,
or the specific requirements of subsections of this section shall take precedence
and in all respects control.
(d)
Filing requirements for life, accident and health insurers.
Each life, life and accident, life and health, accident, accident and health,
mutual life, or life, accident and health insurance company, stipulated premium
insurance company, group hospital service corporation, and the Texas Health
Insurance Risk Pool shall complete and file the blanks, forms, or electronic
data filings as directed in this subsection. This subsection does not apply
to entities licensed as health maintenance organizations under the Insurance
Code Chapter 843. Insurers specified in this subsection and engaged in business
authorized under the Insurance Code Chapter 843 may have additional reporting
requirements under subsection (h) of this section. Insurers described under
this subsection may elect to file on the 2006 Health Quarterly Statement for
the three quarters of 2006 and the 2006 Health Annual Statement if the insurer
passes the Health Statement Test as outlined in the "2006 Annual Statement,
Health Instructions." If a reporting entity qualifies under this subsection
to use the 2006 Health Annual Statement, it must continue to use that annual
statement for a minimum of three years or obtain written approval from the
department to change to another type of annual statement. Insurers filing
the 2006 Life, Accident and Health Annual Statement and the supplemental forms
and reports identified in these subsections shall complete filings in accordance
with the "2006 Annual Statement Instructions, Life, Accident and Health."
Life insurers meeting the test set forth in this subsection to file the 2006
Health Annual Statement and the supplemental forms and reports identified
in these subsections shall complete filings in accordance with the "2006 Annual
Statement Instructions, Health." The electronic filings of these forms or
reports with the NAIC shall be in accordance with the NAIC data specifications
and instructions for electronic filing and shall include PDF format filing.
The filings for insurers described in this subsection are as follows:
(1)
Domestic insurer reports and forms in paper copy to be
filed with the department and the NAIC as follows:
(A)
2006 Life, Accident and Health Annual Statement, including
the printed investment schedule detail, due on or before March 1, 2007 (stipulated
premium insurance companies, April 1, 2007);
(B)
2006 Life, Accident and Health Annual Statement of the
Separate Accounts for the 2006 calendar year (required of companies maintaining
separate accounts), due on or before March 1, 2007;
(C)
2006 Life, Accident and Health Quarterly Statements, due
on or before May 15, August 15, and November 15, 2006. A Texas stipulated
premium insurance company, unless specifically requested to do so by the department,
is not required to file quarterly data filings with the NAIC if it meets all
three of the following conditions:
(i)
it is authorized to write only life insurance on its certificate
of authority;
(ii)
it collected premiums in the prior calendar year of less
than $1 million; and
(iii)
it had a profit from operations in the prior two calendar
years;
(D)
2006 Health Annual Statement, including the printed investment
schedule detail, due on or before March 1, 2007 if the company qualifies as
described in this subsection;
(E)
2006 Health Quarterly Statements, due on or before May
15, August 15, and November 15, 2006 if the company qualifies as described
in this subsection;
(F)
All the paper copies of the annual and quarterly supplements
prepared and filed on dates specified in the forms and instructions. Schedule
SIS and the Supplemental Compensation Exhibit are filed only with the department;
(G)
Management's Discussion and Analysis, due on or before
April 1, 2007; and
(H)
Statement of Actuarial Opinion, due on or before March
1, 2007. The actuarial opinion shall be prepared in accordance with paragraph
(5) of this subsection.
(2)
Domestic insurer reports and forms to be filed in paper
copy only with the department:
(A)
Schedule SIS and Stockholder Information Supplement, due
on or before March 1, 2007. This filing is also required if filing a Health
Annual Statement, as applicable;
(B)
Supplemental Compensation Exhibit, due on or before March
1, 2007 (stipulated premium companies, April 1, 2007). This filing is also
required if filing a Health Annual Statement, as applicable;
(C)
The Texas Health Insurance Risk Pool shall file the 2006,
Health Annual Statement and 2006 Quarterly Statements as follows:
(i)
2006 Health Annual Statement with only pages 1 - 6, and
Schedule E Part 1, Part 2, and Part 3 to be completed and filed on or before
March 1, 2007;
(ii)
2006 Health Quarterly Statements, with only pages 1 -
6, Schedule E, Part 1-Cash, and Part 2-Cash Equivalents to be completed and
filed on or before May 15, August 15, and November 15, 2006; and
(iii)
The Texas Health Insurance Risk Pool is not required
to file any reports, diskettes, or electronic data filings with the NAIC.
(D)
Texas Overhead Assessment Exemption Form (Texas Edition),
due on or before March 1, 2007. (stipulated premium insurance companies, April
1, 2007). This form is to be filed only by domestic insurance companies that
have qualified pension contracts under the Insurance Code Article 1.16(b)
(revised as §451.151 effective April 1, 2007); otherwise, this form should
not be filed;
(E)
Analysis of Surplus (Texas Edition) for life, accident
and health insurers, due on or before March 1, 2007 (stipulated premium insurance
companies, April 1, 2007).
(3)
Foreign companies filing only electronically with the NAIC
and not filing a paper copy with the department shall file a signed jurat
page with the department in lieu of filing the entire paper filing.
(4)
Electronic filings with the NAIC by domestic and foreign
insurers:
(A)
Annual statement electronic filing and PDF filing, due
on or before March 1, 2007 (stipulated premium insurance companies, April
1, 2007);
(B)
Separate accounts electronic filing and PDF filing, due
on or before March 1, 2007;
(C)
Quarterly statement electronic filing and PDF filing, due
on or before May 15, August 15, and November 15, 2006. A Texas stipulated
premium insurance company, unless specifically requested to do so by the department,
is not required to file quarterly electronic data filings with the NAIC if
it meets all three of the following conditions:
(i)
it is authorized to write only life insurance on its certificate
of authority;
(ii)
it collected premiums in the prior calendar year of less
than $1 million; and
(iii)
it had a profit from operations in the prior two calendar
years;
(D)
All annual and quarterly supplemental electronic filings
together with the related PDF filings (except for Schedule SIS and Supplemental
Compensation Exhibit which are filed by domestic insurers only with the department
in paper copy) due on the dates specified in the forms and instructions.
(5)
Statement of Actuarial Opinion required by paragraph (1)(H)
of this subsection shall be prepared in accordance with the following:
(A)
Unless exempted, the Statement of Actuarial Opinion, attached
to either the 2006 Life, Accident and Health Annual Statement or the 2006
Health Annual Statement, should follow the applicable provisions of §§3.1601
- 3.1608 of this title (relating to Actuarial Opinion and Memorandum Regulation).
(B)
For those companies exempted from §§3.1601 -
3.1608 of this title, instructions 1 - 12, established by the NAIC, must be
followed.
(C)
Any company required by §3.4505(b)(3)(I) of this title
(relating to General Calculation Requirements for Basic Reserves and Premium
Deficiency Reserves) to opine on the application of X factors, shall attach
this opinion to the 2006 Life, Accident and Health Annual Statement or the
2006 Health Annual Statement, as applicable.
(6)
The commissioner reserves the right to request paper copies
of any paper or electronic filings made by foreign companies in their state
of domicile or the NAIC.
(7)
A foreign insurer that is classified as a commercially
domiciled insurer under the Insurance Code §823.004 shall file an Analysis
of Surplus (Texas Edition) for life, accident and health insurers with the
department, on or before March 1, 2007.
(e)
Requirements for property and casualty insurers. Each fire,
fire and marine, general casualty, fire and casualty, or U.S. branch of an
alien insurer, county mutual insurance company, mutual insurance company other
than life, Lloyd's plan, reciprocal or inter insurance exchange, domestic
risk retention group, life insurance company that is licensed to write workers'
compensation, any farm mutual insurance company that filed a property and
casualty annual statement for the 2005 calendar year or had gross written
premiums in 2006 in excess of $5 million, any Mexican casualty insurance company
licensed under Insurance Code Chapter 984, domestic joint underwriting association,
the Texas Mutual Insurance Company, the Texas Windstorm Insurance Association,
and the Texas FAIR Plan Association shall complete and file the following
blanks, forms, and diskettes or electronic data filings as described in this
subsection. The forms and reports identified in this subsection shall be completed
in accordance with the "2006 Annual Statement Instructions, Property and Casualty."
The electronic filings with the NAIC shall be in accordance with the NAIC
data specifications and instructions and shall include PDF format filing,
as applicable. The filings for insurers described in this subsection are as
follows:
(1)
Domestic insurer reports and forms in paper copy to be
filed with the department and the NAIC as follows:
(A)
2006 Property and Casualty Annual Statement, due on or
before March 1, 2007;
(B)
2006 Property and Casualty Quarterly Statements, due on
or before May 15, August 15, and November 15, 2006;
(C)
2006 Combined Property/Casualty Annual Statement, due on
or before May 1, 2007. This statement is required only for those affiliated
insurers that wrote more than $35 million in direct premiums as a group in
calendar year 2006, as disclosed in Schedule T of the Annual Statement(s);
and
(D)
All the paper copies of the annual and quarterly supplements
prepared and filed on dates specified in the forms and instructions. Schedule
SIS and the Supplemental Compensation Exhibit are filed only with the department.
(E)
The actuarial opinion submitted shall be prepared in accordance
with the "2006 Annual Statement Instructions, Property and Casualty."
(2)
Domestic insurer reports and forms to be filed in paper
copy only with the department:
(A)
Schedule SIS and the Stockholder Information Supplement,
due on or before March 1, 2007;
(B)
Supplemental Compensation Exhibit, due on or before March
1, 2007;
(C)
Texas Overhead Assessment Exemption Form (Texas Edition),
due on or before March 1, 2007. This form is to be filed only by domestic
insurance companies that have qualified pension contracts under Insurance
Code Article 1.16(b) (revised as §401.151 effective April 1, 2007); otherwise,
this form should not be filed;
(D)
Supplement for County Mutuals (Texas Edition) (required
of Texas county mutual companies only), due on or before March 1, 2007;
(E)
Texas Supplemental A for county mutuals (Texas Edition)
(required of Texas county mutual companies only), due on or before March 1,
2007;
(F)
Analysis of Surplus (Texas Edition) for property and casualty
insurers except Texas county mutual companies, due on or before March 1, 2007;
and
(G)
Actuarial Opinion Summary prepared in accordance with §7.9
of this title (relating to Examination of Actuarial Opinion for Property and
Casualty Insurers).
(H)
The Texas Windstorm Insurance Association shall complete
and file the following:
(i)
2006 Property and Casualty Annual Statement, due on or
before March 1, 2007;
(ii)
2006 Property and Casualty Quarterly Statements, due on
or before May 15, August 15, and November 15, 2006; and
(iii)
Management's Discussion and Analysis, due on or before
April 1, 2007.
(iv)
The Texas Windstorm Insurance Association is not required
to file any reports with the NAIC.
(I)
The Texas FAIR Plan Association shall complete and file
the following:
(i)
2006 Property and Casualty Annual Statement, due on or
before March 1, 2007;
(ii)
2006 Property and Casualty Quarterly Statements, due on
or before May 15, August 15, and November 15, 2006;
(iii)
Statement of Actuarial Opinion, due on or before March
1, 2007;
(iv)
Actuarial Opinion Summary prepared in accordance with
§7.9 of this title; and
(v)
Management's Discussion and Analysis, due on or before
April 1, 2007.
(vi)
The Texas FAIR Plan Association is not required to file
any reports with the NAIC.
(3)
Foreign property and casualty insurers filing only electronically
with the NAIC and not filing a paper copy with the department shall file a
signed jurat page with the department in lieu of filing the entire paper filing.
(4)
Electronic filings by domestic and foreign insurers to
be filed with the NAIC:
(A)
Annual statement electronic filing and PDF filing, due
on or before March 1, 2007;
(B)
Quarterly statement electronic filing and PDF filing, due
on or before May 15, August 15, and November 15, 2006;
(C)
All annual and quarterly supplemental electronic filings
together with the related PDF filings (except for electronic Schedule SIS
and Supplemental Compensation Exhibit, required of domestic insurers only)
due on the dates specified in the forms and instructions;
(D)
Electronic combined insurance exhibit, due on or before
May 1, 2007; and
(E)
Combined annual statement electronic filing and PDF filing,
due on or before May 1, 2007.
(5)
The commissioner reserves the right to request paper copies
of any paper or electronic filings made by foreign companies in their state
of domicile or the NAIC.
(6)
A foreign insurer that files an application with the department
for approval of a policyholder dividend shall file an Analysis of Surplus
(Texas Edition) for property and casualty insurers with the application.
(7)
A foreign insurer that is classified as a commercially
domiciled insurer under the Insurance Code §823.004 shall file an Analysis
of Surplus (Texas Edition) for property and casualty insurers with the department,
on or before March 1, 2007.
(f)
Requirements for fraternal benefit societies. Each fraternal
benefit society shall complete and file the following blanks, forms, and electronic
data filings for the 2006 calendar year and the three quarters for the 2006
calendar year. The forms and reports identified in this subsection shall be
completed in accordance with the "2006 Annual Statement Instructions, Fraternal."
The electronic data filings with the NAIC shall be in accordance with the
NAIC data specifications and instructions and shall include PDF format filing.
The filings for insurers described in this subsection are as follows:
(1)
Domestic insurer reports and forms in paper copy to be
filed with the department and the NAIC as follows:
(A)
2006 Fraternal Annual Statement, including the printed
investment schedule detail, due on or before March 1, 2007;
(B)
2006 Fraternal Annual Statement of the Separate Accounts
(required of companies maintaining separate accounts), due on or before March
1, 2007;
(C)
2006 Fraternal Quarterly Statements, due on or before May
15, August 15, and November 15, 2006; and
(D)
All the paper copies of the annual and quarterly supplements
prepared and filed on dates specified in the forms and instructions. The Supplemental
Compensation Exhibit is filed only with the department by domestic insurers.
(2)
Domestic insurer paper copy reports and forms to be filed
only with the department:
(A)
Supplemental Compensation Exhibit, due on or before March
1, 2007;
(B)
Texas Assessment Exemption Form (Texas Edition), due on
or before March 1, 2007. This form is to be filed only by domestic insurance
companies that have qualified pension contracts under Insurance Code Article
1.16(b) (revised as §401.151 effective April 1, 2007); otherwise, this
form should not be filed; and
(C)
Analysis of Surplus (Texas Edition) for fraternal benefit
societies, due on or before March 1, 2007.
(3)
Foreign fraternal insurers filing only electronically with
the NAIC and not filing a paper copy with the department shall file a signed
jurat page with the department in lieu of filing the entire paper filing.
(4)
Electronic filings by domestic and foreign insurers to
be filed with the NAIC:
(A)
Annual statement electronic filing and PDF filing, due
on or before March 1, 2007;
(B)
Separate accounts electronic filing and PDF filing, due
on or before March 1, 2007;
(C)
Quarterly statement electronic filing and PDF filing, due
on or before May 15, August 15, and November 15, 2006; and
(D)
All annual and quarterly supplemental electronic filings
together with the related PDF filings (except for the Supplemental Compensation
Exhibit) due on the dates specified in the forms.
(5)
The commissioner reserves the right to request paper copies
of any paper or electronic filings made by foreign companies in their state
of domicile or the NAIC.
(6)
A foreign insurer that is classified as a commercially
domiciled insurer under Insurance Code §823.004 shall file an Analysis
of Surplus (Texas Edition) for fraternal benefit societies with the department
on or before March 1, 2007.
(g)
Requirements for title insurers. Each title insurance company
shall complete and file the following blanks and forms for the 2006 calendar
year and the three quarters of the 2006 calendar year. The reports and forms
identified in this subsection shall be completed in accordance with the "2006
Annual Statement Instructions, Title." The electronic version of the filings
with the NAIC identified in this subsection shall be in accordance with the
NAIC data specifications and instructions and shall include PDF format filing.
The filings for insurers described in this subsection are as follows:
(1)
Domestic insurer reports and forms in paper copy to be
filed with the department and the NAIC as follows:
(A)
2006 Title Annual Statement, including printed investment
schedule details, due on or before March 1, 2007;
(B)
2006 Title Quarterly Statements, due on or before May 15,
August 15, and November 15, 2006;
(C)
All the paper copies of the annual and quarterly supplements
prepared and filed on dates described in the forms and instructions. The Schedule
SIS and the Supplemental Compensation Exhibit are filed only with the department.
(D)
Management's Discussion and Analysis, due on or before
April 1, 2007; and
(E)
Statement of Actuarial Opinion, due on or before March
1, 2007.
(2)
Domestic insurer paper copy filings and reports to be filed
only with the department:
(A)
Supplemental Compensation Exhibit, due on or before March
1, 2007;
(B)
Schedule SIS and Stockholder Information Supplement, due
on or before March 1, 2007;
(C)
Texas Overhead Assessment Exemption Form (Texas Edition),
due on or before March 1, 2007. This form is to be filed only by domestic
insurance companies that have qualified pension contracts under Insurance
Code Article 1.16(b) (revised as §401.151 effective April 1, 2007); otherwise,
this form should not be filed; and
(D)
Analysis of Surplus (Texas Edition) for title companies,
due on or before March 1, 2007.
(3)
Foreign companies filing electronically with the NAIC and
not filing a paper copy with the department shall file a signed jurat page
with the department in lieu of filing the entire paper filing.
(4)
Electronic filings with the NAIC by domestic and foreign
insurers:
(A)
Annual statement electronic filing and PDF filing, due
on or before March 1, 2007;
(B)
Quarterly statements electronic filing and PDF filing,
due on or before May 15, August 15, and November 15, 2006;
(C)
All annual and quarterly supplemental electronic filings
together with the related PDF filings (except for Schedule SIS and Supplemental
Compensation Exhibit which are only filed by domestic insurers with the department
in paper copy) due on the dates specified in the forms and instructions;
(D)
Management Discussion and Analysis, due on or before April
1, 2007; and
(E)
Statement of Actuarial Opinion, due on or before March
1, 2007.
(5)
The commissioner reserves the right to request paper copies
of any paper or electronic filings made by foreign companies in their state
of domicile or the NAIC.
(6)
A foreign insurer that is classified as a commercially
domiciled insurer under the Insurance Code §823.004 shall file an Analysis
of Surplus (Texas Edition) for title insurers on or before March 1, 2007.
(h)
Requirements for health maintenance organizations. Each
health maintenance organization licensed pursuant to the Insurance Code Chapter
843 shall complete the 2006 Health Annual Statement and the 2006 Quarterly
Statements. Insurers that are subject to life insurance statutes and are permitted
or allowed to do the business of health maintenance organizations shall file
the Texas HMO supplement form as part of their annual and quarterly statement
filings. The forms and reports required in this subsection shall be completed
in accordance with the "2006 Annual Statement Instructions, Health." The Texas
supplemental forms required in this subsection and provided by the department
shall be completed in accordance with the instructions on the forms. The Statement
of Actuarial Opinion shall include the additional requirements of the department
set forth in paragraph (1)(D) of this subsection. The electronic data filings
with the NAIC shall be in accordance with NAIC data specifications and instructions
and shall include PDF format filing. The Texas specific electronic filings
regarding HMO data requested by the department shall be filed in accordance
with the instructions provided by the department. The filings for insurers
described in this subsection are as follows:
(1)
Domestic and foreign insurer reports and forms in paper
copy to be filed with the department and the NAIC:
(A)
2006 Health Annual Statement, including printed investment
schedule detail, due on or before March 1, 2007;
(B)
2006 Health Quarterly Statements, due on or before May
15, August 15, and November 15, 2006. With each quarterly filing, include
a completed copy of Schedule E-part 3-Special Deposits, from the 2006 Health
Annual Statement;
(C)
Management's Discussion and Analysis, due on or before
April 1, 2007; and
(D)
Statement of Actuarial Opinion, due on or before March
1, 2007. In addition to the requirements set forth in the "2006 Annual Statement
Instructions, Health," the department requires that the actuarial opinion
include the following:
(i)
The Statement of Actuarial Opinion must include assurance
that an actuarial report and underlying actuarial work papers supporting the
actuarial opinion will be maintained at the company and available for examination
for seven years. The foregoing must be available by May 1 of the year following
the year end for which the opinion was rendered or within two weeks after
a request from the commissioner. The suggested wording used will depend on
whether the actuary is employed by the company or is a consulting actuary.
The wording for an actuary employed by the company should be similar to the
following: "An actuarial report and any underlying actuarial work papers supporting
the findings expressed in this Statement of Actuarial Opinion will be retained
for a period of seven years in the administrative offices of the company and
available for regulatory examination." The wording for a consulting actuary
retained by the company should be similar to the following: "An actuarial
report and any underlying actuarial work papers supporting the findings expressed
in this Statement of Actuarial Opinion have been provided to the company to
be retained for a period of seven years in the administrative offices of the
company and available for regulatory examination."
(ii)
Under the scope paragraph requirements of section 5 of
the "2006 Annual Statement Instructions, Health," relating to the Actuarial
Certification, the department requires that the actuarial opinion specifically
list the premium deficiency reserve as an item and disclose the amount of
such reserve.
(2)
Domestic insurer paper copy and Texas specific filings
and reports to be filed with the department:
(A)
Supplemental Compensation Exhibit, due on or before March
1, 2007;
(B)
Texas HMO Supplement (Texas Edition), due on or before
May 15, August 15, and November 15, 2006, and March 1, 2007;
(C)
Electronic filings with the department containing annual
statement data, to be completed according to the instructions provided by
the department, due on or before March 1, 2007;
(D)
Electronic filings with the department containing quarterly
statement data, to be completed according to the instructions provided by
the department, due on or before May 15, August 15, and November 15, 2006;
and
(E)
Texas Overhead Assessment Exemption Form (Texas Edition),
due on or before March 1, 2007. This form is to be filed only by domestic
insurance companies that have qualified pension contracts under Insurance
Code Article 1.16(b) (revised as §401.151 effective April 1, 2007); otherwise,
this form should not be filed.
(3)
Electronic filings with the NAIC by domestic and foreign
insurers:
(A)
Annual statement electronic filing, and PDF filing, due
on or before March 1, 2007;
(B)
Quarterly statement electronic filing and PDF filing, due
on or before May 15, August 15, and November 15, 2006;
(C)
All annual and quarterly supplemental electronic filings
together with the related PDF filings (except for Schedule SIS and Supplemental
Compensation Exhibit which are only filed by domestic insurers with the department
in paper copy) due on the dates specified in the forms and instructions;
(D)
Statement of Actuarial Opinion, due on or before March
1, 2007; and
(E)
Management Discussion and Analysis, due on or before April
1, 2007.
(i)
Requirements for farm mutual insurers not subject to the
provisions of subsection (e) of this section. Farm mutual insurance companies
not subject to subsection (e) of this section shall file the following blanks
and forms for the 2006 calendar year with the department only, on or before
March 1, 2007:
(1)
Annual Statement (Texas Edition);
(2)
Texas Overhead Assessment Exemption Form (Texas Edition).
This form is to be filed only by domestic insurance companies that have qualified
pension contracts under Insurance Code Article 1.16(b) (revised as §401.151
effective April 1, 2007); otherwise, this form should not be filed; and
(3)
Statement of Actuarial Opinion, unless exempted under §7.31
of this title (relating to Annual Statement Instructions for Farm Mutual Insurance
Companies).
(j)
Requirements for statewide mutual assessment associations,
local mutual aid associations, mutual burial associations and exempt associations.
Each statewide mutual assessment association, local mutual aid association,
mutual burial association and exempt association shall complete and file the
following blanks and forms for the 2006 calendar year with the department
only, on or before April 1, 2007:
(1)
Annual Statement (Texas Edition) (exempt companies are
required to complete all pages except lines 22, 23, 24, 25, and 26 on page
3, the special instructions at the bottom of page 3, and pages 4 - 7);
(2)
Texas Overhead Assessment Exemption Form (Texas Edition).
This form is to be filed only by domestic insurance companies that have qualified
pension contracts under Insurance Code Article 1.16(b) (revised as §401.151
effective April 1, 2007); otherwise, this form should not be filed;
(3)
Release of Contributions Form (Texas Edition);
(4)
3 1/2 % Chamberlain Reserve Table (Reserve Valuation) (Texas
Edition);
(5)
Reserve Summary (1956 Chamberlain Table 3 1/2 %) (Texas
Edition);
(6)
Inventory of Insurance in Force by Age of Issue or Reserving
Year (Texas Edition); and
(7)
Summary of Inventory of Insurance in Force by Age and Calculation
of Net Premiums (Texas Edition).
(k)
Requirements for nonprofit legal service corporations.
Each nonprofit legal service corporation doing business as authorized by a
certificate of authority issued under the Insurance Code Chapter 961 shall
complete and file the following blanks and forms for the 2006 calendar year
with the department only. An actuarial opinion is not required. The following
forms are to be filed on or before March 1, 2007:
(1)
Annual Statement (Texas Edition); and
(2)
Texas Overhead Assessment Exemption Form (Texas Edition).
This form is to be filed only by domestic insurance companies that have qualified
pension contracts under Insurance Code Article 1.16(b) (revised as §401.151
effective April 1, 2007); otherwise, this form should not be filed.
(l)
Requirements for Mexican casualty insurance companies.
Each Mexican casualty insurance company doing business as authorized by a
certificate of authority issued under the Insurance Code Chapter 984, shall
complete and file the following blanks and forms for the 2006 calendar year
with the department only. All submissions shall be printed or typed in English
and all monetary values shall be clearly designated in United States dollars.
The form identified in paragraph (1) of this subsection shall be completed
to the extent specified in paragraph (1) of this subsection and in accordance
with the "2006 Annual Statement Instructions, Property and Casualty." An actuarial
opinion is not required. It is the express intent of this subsection that
it shall not repeal or otherwise modify or amend any department rule or the
Insurance Code. The following blanks or forms are to be filed on or before
March 1, 2007:
(1)
2006 Property and Casualty Annual Statement; provided,
however, only pages 1 - 4, and 104 (Schedule T) are required to be completed;
(2)
A copy of the balance sheet and the statement of profit
and loss from the Mexican financial statement (printed or typed in English);
(3)
A copy of the official documents issued by the Comision
Nacional de Seguros y Fianzas approving the 2006 annual statement; and
(4)
A copy of the current license to operate in the Republic
of Mexico.
(m)
Other financial reports. Nothing in this section prohibits
the department from requiring any insurer or other regulated entity from filing
other financial reports with the department.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on February 26, 2007.
TRD-200700756
Gene Jarmon
Chief Clerk and General Counsel
Texas Department of Insurance
Earliest possible date of adoption: April 15, 2007
For further information, please call: (512) 463-6327