28 TAC §7.71
The Commissioner of Insurance adopts amendments to §7.71
concerning the requirements for filing the 2001 annual and quarterly statement
blanks and other reporting forms. The section is adopted with changes to the
proposed text as published in the December 14, 2001 issue of the Texas Register
(26 TexReg 10223).
The adopted amendment is necessary to adopt by reference the forms and
reports that are only filed with the department. The information provided
by completion of the forms is necessary for the department to monitor the
solvency, business activities and statutory compliance of the insurers and
other entities regulated by the department. The adopted amendment is also
necessary to conform language in the section to §7.18 of this title (relating
to NAIC Accounting Practices and Procedures Manual) and change an obsolete
reference in the section.
The section adopts by reference forms that are required to be filed with
the department on or before March 1, 2002 with the 2001 annual statement unless
otherwise specified. Completion of the forms provides the department information
which is used to monitor the solvency, business activities and statutory compliance
of the insurers and other entities regulated by the department. The forms
adopted by reference as a result of the adoption of the amendment are necessary
to provide specific information for the department's use. The adoption of
the amendment adopts the following additional forms by reference: Overhead
Assessment, Analysis of Surplus, Supplemental Form Reporting Number of Persons
Covered Under Health Policies, Supplemental Investment Income, Supplement
for County Mutuals, Supplement A for County Mutuals, HMO Supplement 2001 Health
Data, Annual Statement for Farm Mutuals, Annual Statement for Statewide Mutual
Assessment Companies, Local Mutual Aid Associations, Mutual Aid Associations
and Exempt Companies, Release of Contributions Form, 3 1/2% Chamberlain Reserve
Table, Reserve Summary, Inventory of Insurance in Force, Summary of Inventory
of Insurance in Force and Annual Statement for non-profit legal service corporations.
In addition to the adoption of the forms, the adoption of the amendment conforms
the section to the provisions of §7.18 (relating to NAIC Accounting Practices
and Procedures Manual) by deleting subsection (d)(4)(A), subsection (e)(4)
and subsection (f)(4). Language that has not been superceded by §7.18
in subsection (f)(4) concerning actuarial opinions has been moved to subsection
(f)(1)(D). Internal references to these provisions were also deleted. The
adoption of the amendment also conforms subsection (d)(4)(C) to Insurance
Code Article 22.13§1(b) by changing $10,000 to $15,000. Finally, the
adopted section reflects the name change of the Texas Workers' Compensation
Fund to the Texas Mutual Insurance Company. In addition to the changes made
by the amendment, staff changed subsection (d)(4)(A) and added a new subsection
(d)(4)(D) to make it clear that all of the actuarial opinion required by subsection
(d)(1)(G) is to be attached to the annual statement.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Insurance Code Articles 1.11,
3.07, 3.20-1, 3.27-2, 3.77, 6.11, 6.12, 8.07, 8.08, 8.21, 8.24, 9.22, 9.47,
10.30, 11.06, 11.19, 14.15, 14.39, 15.15, 15.16, 16.18, 16.24, 17.22, 17.25,
18.12, 19.08, 20.02, 20A.10, 20A.22, 21.39, 21.43, 21.49, 21.52F, 21.54, 22.06,
23.02 and 23.26, and §§32.041 and 36.001. Article 1.11 authorizes
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 requires
certain insurers to make filings with the National Association of Insurance
Commissioners. Articles 3.07, 3.20-1, 3.27-2, 3.77, 6.11, 6.12, 8.07, 8.08,
8.21, 8.24, 9.22, 9.47, 10.30, 11.06, 11.19, 14.15, 14.39, 15.15, 15.16, 16.18,
16.24, 17.22, 17.25, 18.12, 19.08, 20.02, 20A.10, 20A.22, 21.49, 21.54, 22.06,
23.02, and 23.26 require the filing of financial reports and other information
by insurers and other regulated entities, and specify particular rulemaking
authority of the commissioner relating to those insurers and other regulated
entities. Article 21.39 requires insurers to establish adequate reserves and
provides for the adoption of each current formula for establishing reserves
applicable to each line of insurance. Article 21.43 provides the conditions
under which foreign insurers are permitted to do business in this state and
requires foreign insurers to comply with the provisions of the Insurance Code.
Article 21.52F authorizes the commissioner to adopt rules to implement the
regulation of nonprofit health corporations holding a certificate of authority
under that article. Section 32.041 requires the department to furnish the
statement blanks and other reporting forms necessary for companies to comply
with the filing requirements. Section 36.001 provides that the commissioner
may adopt rules for the conduct and execution of the duties and functions
of the department as authorized by statute.
§7.71.Requirements for Filing the 2001 Quarterly and 2001 Annual Statements, Other Reporting Forms, and Diskettes or Electronic Filings with the NAIC via the Internet.
(a)
Scope. This section provides insurers and other regulated
entities with the requirements for the 2001 quarterly statements, and 2001
annual statement, other reporting forms, and diskettes or electronic filings
with the National Association of Insurance Commissioners (NAIC) via the Internet
necessary to report information concerning the financial condition and business
operations and activities of insurers. This section applies to all insurers
and 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. Branch of an alien insurer; Mexican casualty insurers;
general casualty insurers; fire and casualty insurers; mutual insurers other
than life; 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 with gross
premiums in excess of $5 million; health maintenance organizations; nonprofit
health corporations; nonprofit legal services corporations; the Texas Health
Insurance Risk Pool; the Texas Mutual Insurance Company (successor to the
Texas Workers' Compensation Insurance Fund); and the Texas Windstorm Insurance
Association. The commissioner adopts by reference the 2001 quarterly statement
blanks, the 2001 annual statement blanks and the related instruction manuals,
and other reporting forms specified in this section. The annual and quarterly
statement blanks and other reporting forms are available from the department,
Financial Analysis and Examinations Activity, Mail Code 303-1A, P. O. Box
149099, Austin, Texas 78714-9099. Insurers and other regulated entities shall
properly report to the department and the NAIC by completing the appropriate
annual and quarterly statement blanks, prepared with laser quality print (hand
written copies must be prepared legibly using black ink), other reporting
forms, and diskettes or electronic filings with the NAIC via the Internet
following the applicable instructions as outlined in subsections (d) - (m)
of this section.
(b)
Definitions. The following words and terms, when used in
this section, shall have the following meanings:
(1)
Association edition - Blanks and forms promulgated by the
NAIC.
(2)
Commissioner - The commissioner of insurance appointed
under the Texas Insurance Code.
(3)
Department - The Texas Department of Insurance.
(4)
Texas edition - 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 departmental rule, form, instructions,
or any specific requirement of this section and the NAIC instructions listed
in this section, then and in that event, the Insurance Code, the department's
promulgated rule, form, instruction, or the specific requirement of subsections
(d) - (m) 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 services corporation and the Texas Health
Insurance Risk Pool shall complete and file the blanks, forms, diskettes or
electronic filings with the NAIC via the Internet as directed in this subsection.
The forms and reports identified in paragraphs (1)(A)-(C); (1)(F) and (G);
(2)(A)-(C); and (3)(A)-(I) of this subsection shall be completed in accordance
with the 2001 NAIC Annual Statement Instructions, Life, Accident and Health.
The forms and reports identified in paragraphs (1)(D)-(G); (2)(A) and (B);
(3)(B), (C), (E) and (F) of this subsection shall be completed in accordance
with the 2001 NAIC Health Annual Statement Instructions. The diskettes or
electronic version of the filings with the NAIC via the Internet identified
in paragraph (3)(J) and (K) of this subsection shall be in accordance with
the NAIC data specifications and instructions on the NAIC web site. The electronic
filings with the NAIC shall include PDF format filing. Life, Accident and
Health companies that wrote 100% of their total direct premiums as health
premiums for the calendar year ending December 31, 2000 may elect to file
on the new health annual statement blank for the three quarters of 2001 and
the calendar year 2001 if the insurer meets the definition of writing only
"health" premiums in the 2001 NAIC Health Annual Statement Instructions. Those
instructions describe health premiums to include hospital, surgical and major
medical; Medicare supplement business reportable in the Medicare Supplement
Insurance Experience Exhibit of the annual statement; dental and vision only
coverage issued as stand alone or as a rider to a medical policy that is not
related to the medical policy through deductibles or out of pocket limits;
federal employees health benefits plan premiums (FEHBP); Title XVIII - Medicare
premiums which result from arrangements with the Center for Medicare and Medicaid
Services on a cost or risk basis, for services to a Medicare beneficiary;
Title XIX - Medicaid premiums that result from an arrangement between the
company and a Medicaid state agency for services to a Medicaid beneficiary;
and other health premiums such as stop loss, disability income, long term
care, and prescription drug plans and coverages. If a reporting entity elects
to use the health annual statement, it must continue to use that annual statement
for a minimum of three years or obtain written approval from its domestic
state to change to another type of annual statement. Foreign companies that
wrote less than 100% of health premiums in 2000 may elect to file on the health
annual statement blank if permitted or required by their domicilary state.
(1)
Reports to be filed both with the department and the NAIC
include the following:
(A)
2001 Life, Accident and Health Annual Statement (association
edition) for the 2001 calendar year to be filed on or before March 1, 2002
(stipulated premium insurance companies, April 1, 2002);
(B)
2001 Life, Accident and Health Annual Statement of the
Separate Accounts (association edition) for the 2001 calendar year (required
of companies maintaining separate accounts), to be filed on or before March
1, 2002 (stipulated premium insurance companies, April 1, 2002);
(C)
2001 Life, Accident and Health Quarterly Statements (association
edition), to be filed on or before May 15, August 15, and November 15, 2001.
However, a Texas stipulated premium insurance company, unless specifically
requested to do so by the department, is not required to file quarterly statements
with the department or 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)
2001 Health Quarterly Statements (association edition),
to be filed on or before May 15, August 15, and November 15, 2001 if the company
qualifies as described in this subsection;
(E)
2001 Health Annual Statement (association edition) for
the 2001 calendar year, to be filed on or before March 1, 2002 (stipulated
premium insurance companies, April 1, 2002) if the company qualifies as described
in this subsection;
(F)
Management's Discussion and Analysis (a narrative document
setting forth information which enables regulators to enhance their understanding
of the insurer's financial position, results of operations, changes in capital
and surplus accounts and cash flow), to be filed with the 2001 Life, Accident
and Health Annual Statement on or before April 1, 2002, or if the 2001 Health
Annual Statement is required, then filed with the 2001 Health Annual Statement
on or before April 1, 2002;
(G)
Actuarial Opinion (the statement of a qualified actuary,
setting forth his or her opinion relating to policy reserves and other actuarial
items; required of all companies), to be attached to the Life, Accident and
Health Annual Statement or if required, the Health Annual Statement as applicable;
(2)
Reports to be filed only with the department:
(A)
Schedule SIS, Stockholder Information Supplement (association
edition) (required of domestic stock companies which have 100 or more stockholders),
to be filed on or before March 1, 2002. This filing is also required if filing
a Health Annual Statement, as applicable;
(B)
Supplemental Compensation Exhibit (association edition)
(required of Texas domestic companies only), to be filed on or before March
1, 2002 (stipulated premium companies, April 1, 2002). This filing is also
required if filing a Health Annual Statement, as applicable;
(C)
The Texas Health Insurance Risk Pool shall file the 2001
Life, Accident and Health Annual and Quarterly Statements as follows:
(i)
2001 Life, Accident and Health Annual Statement (association
edition), blue colored cover, to be filed on or before March 1, 2002. However,
only pages 1 - 5, 12, and the Notes to Financial Statements (page 31) and
Schedule E (page 75) are required to be completed and filed; and
(ii)
2001 Life, Accident and Health Quarterly Statement (association
edition), to be filed on or before May 15, August 15, and November 15, 2001.
(iii)
The Texas Health Insurance Risk Pool is not required
to file any reports, diskettes, or electronic filings with the NAIC.
(D)
Texas Overhead Assessment Form (Texas edition) (required
of Texas domestic companies only), to be filed on or before March 1, 2002
(stipulated premium insurance companies, April 1, 2002);
(E)
Analysis of Surplus (Texas edition) for life, accident
and health insurers, to be filed on or before March 1, 2002 (stipulated premium
insurance companies, April 1, 2002);
(F)
Supplemental Investment Income Exhibit (Texas edition)
(shows percent of net investment income by type of investment), as an attachment
to page ten of the annual statement, to be filed on or before March 1, 2002
(stipulated premium companies, April 1, 2002); and
(G)
Texas Supplemental Form - Number of Persons Covered Under
Texas Health Policies, as an attachment to the Texas state page of the annual
statement. This filing is also required if filing a Health Annual Statement,
as applicable.
(3)
Reports, diskettes, or electronic filings via the Internet
filed only with the NAIC:
(A)
Trusteed Surplus Statement (association edition), Life,
Accident and Health Supplement (required of the U. S. branch of an alien insurer),
to be filed on or before May 15, August 15, November 15, 2001 and March 1,
2002 with the annual statement;
(B)
Medicare Supplement Insurance Experience Exhibit (association
edition) (for insurers writing Medicare supplement business), to be filed
on or before March 1, 2002. This filing is also required if filing a Health
Annual Statement, as applicable;
(C)
Officers and Directors Information (association edition),
to be filed on or before March 1, 2002 (stipulated premium insurance companies,
April 1, 2002). This filing is also required if filing a Health Annual Statement,
as applicable;
(D)
Credit Insurance Experience Exhibit (association edition)
(required of companies writing credit business), to be filed on or before
April 1, 2002;
(E)
Long-Term Care Insurance Exhibit (association edition)
(required of companies writing long-term care business), to be filed on or
before March 1, 2002 (stipulated premium insurance companies, April 1, 2002).
This filing is also required if filing a Health Annual Statement, as applicable;
(F)
Long-Term Care Experience Reporting Forms (association
edition) (required of companies writing long-term care business), to be filed
on or before April 1, 2002. This filing is also required if filing a Health
Annual Statement, as applicable;
(G)
Interest Sensitive Life Insurance Products Report (association
edition) (required of companies writing interest sensitive products), to be
filed on or before April 1, 2002;
(H)
Life, Health and Annuity Guaranty Association Model Act
Assessment Base Reconciliation Exhibit (association edition), to be filed
on or before April 1, 2002;
(I)
Adjustments to the Life, Health and Annuity Guaranty Association
Model Act Assessment Base Reconciliation Exhibit (association edition), to
be filed on or before April 1, 2002;
(J)
Diskettes or electronic filings via the Internet containing
computerized annual statement data, to be filed on or before March 1, 2002
(stipulated premium insurance companies, April 1, 2002); and
(K)
Diskettes or electronic filings via the Internet containing
computerized quarterly statement data, to be filed on or before May 15, August
15, and November 15, 2001. A Texas stipulated premium insurance company, unless
specifically requested to do so by the department, is not required to file
quarterly diskettes or electronic filings via the Internet 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.
(4)
Actuarial opinions required by paragraph (1)(G) of this
subsection shall be in accordance with the following:
(A)
Unless exempted, the statement of actuarial opinion, attached
to either the Life, Accident and Health Annual Statement or the Health Annual
Statement, should follow the applicable provisions of §§3.1601-3.1611
of this title (relating to Actuarial Opinion and Memorandum Regulation).
(B)
For those companies exempted from §§3.1601-3.1611
of this title, instructions 1-12, established by the NAIC, must be followed.
(C)
Any stipulated premium company subject to §§3.1601-3.1611
of this title which does not insure or assume risk on contracts with death
benefits, cash value, or accumulation values on any one life in excess of
$15,000, except as permitted by Insurance Code Article 22.13, §1(b),
is exempt from submission of a statement of actuarial opinion in accordance
with §3.1608 of this title (relating to Statement of Actuarial Opinion
Based on an Asset Adequacy Analysis), but must submit an actuarial opinion
pursuant to §3.1607 of this title (relating to Statement of Actuarial
Opinion Not Including an Asset Adequacy Analysis).
(D)
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 Life, Accident and Health Annual Statement or the Health
Annual Statement, as applicable.
(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 2000 calendar year or had gross written
premiums in 2001 in excess of $5,000,000, any Mexican non-life insurer licensed
under any article of the Insurance Code other than, or in addition to, Insurance
Code Article 8.24, domestic joint underwriting association, the Texas Mutual
Insurance Company (successor to the Texas Workers' Compensation Insurance
Fund) and the Texas Windstorm Insurance Association shall complete and file
the following blanks, forms, and diskettes or electronic filings with the
NAIC via the Internet as directed by this subsection. The forms and reports
identified in paragraphs (1)(A)-(G); (2)(A)-(C); and (3)(A)-(F) of this subsection
shall be completed in accordance with the 2001 NAIC Annual Statement Instructions,
Property and Casualty. The diskettes or electronic version of the filings
with the NAIC via the Internet identified in paragraph (3)(G)-(I) of this
subsection shall be in accordance with the NAIC data specifications. The electronic
filings with the NAIC shall include PDF format filing.
(1)
Reports to be filed both with the department and the NAIC:
(A)
2001 Property and Casualty Annual Statement (association
edition), to be filed on or before March 1, 2002;
(B)
2001 Property and Casualty Quarterly Statements (association
edition), to be filed on or before May 15, August 15, and November 15, 2001;
(C)
2001 Combined Property/Casualty Annual Statement (association
edition), to be filed on or before May 1, 2002, including the Insurance Expense
Exhibit. This form is required only for those affiliated insurers that wrote
more than $35 million in direct premiums as a group in calendar year 2001,
as disclosed in Schedule T of the Annual Statement(s);
(D)
Supplement "A" to Schedule T, Exhibit of Medical Malpractice
Premiums Written (association edition) (required of companies writing medical
malpractice business), to be filed on or before March 1, 2002;
(E)
Management's Discussion and Analysis (a narrative document
setting forth information which enables regulators to enhance their understanding
of the insurer's financial position, results of operations, changes in capital
and surplus accounts and cash flow), to be filed on or before April 1, 2002;
(F)
Actuarial Opinion (the statement of a qualified actuary,
setting forth his or her opinion relating to policy reserves and other actuarial
items; required of all companies), to be attached to the annual statement;
and
(G)
Financial Guaranty Insurance Exhibit (association edition)
(required of companies writing financial guaranty business), to be filed on
or before March 1, 2002;
(2)
Reports to be filed only with the department:
(A)
Schedule SIS, Stockholder Information Supplement (association
edition) (required of domestic stock companies which have 100 or more stockholders),
to be filed on or before March 1, 2002;
(B)
Supplemental Compensation Exhibit (association edition)
(required of Texas domestic companies only), to be filed on or before March
1, 2002;
(C)
The Texas Windstorm Insurance Association (Insurance Code
Article §21.49) shall complete and file the following only:
(i)
Annual Statement (association edition), to be filed on
or before March 1, 2002;
(ii)
Property and Casualty Quarterly Statement (association
edition), to be filed on or before May 15, August 15, and November 15, 2001;
and
(iii)
Management's Discussion and Analysis (a narrative document
setting forth information which enables regulators to enhance their understanding
of the insurer's financial position, results of operations, changes in capital
and surplus accounts and cash flow), to be filed on or before April 1, 2002.
(D)
Supplemental Investment Income Exhibit (Texas edition)
(shows percent of net investment income by type of investment), as an attachment
to page six of the annual statement, to be filed on or before March 1, 2002;
(E)
Texas Overhead Assessment Form (Texas edition) (required
of Texas domestic companies only), to be filed on or before March 1, 2002;
(F)
Analysis of Surplus (Texas edition) for property and casualty
insurers except Texas county mutual companies, to be filed on or before March
1, 2002;
(G)
Supplement for County Mutuals (Texas edition) (required
of Texas county mutual companies), as an attachment to page sixteen of the
annual statement, to be filed on or before March 1, 2002;
(H)
Texas Supplemental A for County Mutuals (Texas edition)
(required of Texas county mutual companies, as an attachment to page nine
of the annual statement), to be filed on or before March 1, 2002; and
(I)
Texas Supplemental Form-Number of Persons Covered Under
Texas Health Policies), as an attachment to the Texas state page of the annual
statement.
(3)
Reports, diskettes, or electronic filings via the Internet
filed only with the NAIC:
(A)
Medicare Supplement Insurance Experience Exhibit (association
edition) (for insurers writing Medicare supplement business), to be filed
on or before March 1, 2002;
(B)
Trusteed Surplus Statement (association edition) (required
of the U. S. branch of an alien insurer), to be filed on or before May 15,
August 15, November 15, 2001, and March 1, 2002 with the annual statement;
(C)
Officers and Directors Information (association edition),
to be filed on or before March 1, 2002;
(D)
Insurance Expense Exhibit (association edition), to be
filed on or before April 1, 2002;
(E)
Credit Insurance Experience Exhibit (association edition)
(required of companies writing credit accident and/or health business), to
be filed on or before April 1, 2002;
(F)
Long-Term Care Experience Reporting Forms (association
edition) (required of companies writing long-term care business), to be filed
on or before April 1, 2002;
(G)
Diskettes or electronic filings via the Internet containing
computerized annual statement data, to be filed on or before March 1, 2002;
(H)
Diskettes or electronic filings via the Internet containing
combined annual statement data, to be filed on or before May 1, 2002; and
(I)
Diskettes or electronic filings via the Internet containing
computerized quarterly statement data, to be filed on or before May 15, August
15, and November 15, 2001.
(f)
Requirements for fraternal benefit societies. Each fraternal
benefit society shall complete and file the following blanks, forms, and diskettes
or electronic filings for the 2001 calendar year and the three quarters for
the 2001 calendar year. The forms, reports, and diskettes identified in paragraphs
(1)(A)-(D), (2)(A)-(C), and (3)(A)-(E) and (G) of this subsection shall be
completed in accordance with the 2001 NAIC Annual Statement Instructions,
Fraternal. The diskettes or electronic version of the filings with the NAIC
via the Internet identified in paragraph (3)(F) of this subsection shall be
in accordance with the NAIC data specifications. The electronic filings with
the NAIC shall include PDF format filing.
(1)
Reports to be filed both with the department and the NAIC:
(A)
Annual Statement, Fraternal (association edition), to be
filed on or before March 1, 2002;
(B)
Annual Statement of the Separate Accounts, Fraternal, (association
edition) (required of companies maintaining separate accounts), to be filed
on or before March 1, 2002;
(C)
Management's Discussion and Analysis (a narrative document
setting forth information which enables regulators to enhance their understanding
of the insurer's financial position, results of operations, changes in capital
and surplus accounts and cash flow), to be filed on or before April 1, 2002;
and
(D)
Actuarial Opinion (the statement of a qualified actuary,
setting forth his or her opinion relating to policy reserves and other actuarial
items, in accordance with NAIC instructions 1-12; to be filed by all companies),
to be attached to the annual statement required by subparagraph (A) of this
paragraph.
(2)
Reports to be filed only with the department:
(A)
Fraternal Quarterly statement (association edition), to
be filed on or before May 15, August 15, and November 15, 2001;
(B)
Supplemental Compensation Exhibit (association edition)
(required of Texas domestic companies only), to be filed on or before March
1, 2002;
(C)
Fraternal Benefit Societies Supplement to Valuation Report
(association edition) to be filed on or before June 30, 2002; and
(D)
Texas Overhead Assessment Form (Texas edition) (required
of Texas domestic companies only), to be filed on or before March 1, 2002;
(E)
Analysis of Surplus (Texas Edition) for fraternal benefit
societies to be filed on or before March 1, 2002; and
(F)
Supplemental Investment Income Exhibit (Texas edition)
(shows percent of net investment income by type of investment), as an attachment
to page ten of the annual statement, to be filed on or before March 1, 2002.
(3)
Reports and diskettes or electronic filings via the Internet
to be filed only with the NAIC:
(A)
Trusteed Surplus Statement (association edition, Fraternal
Supplement) (required of the U. S. branch of an alien insurer), to be filed
on or before March 1, 2002 with the annual statement;
(B)
Medicare Supplement Insurance Exhibit (association edition)
(for insurers writing Medicare supplement business) to be filed on or before
March 1, 2002;
(C)
Officers and Directors Information (association edition),
to be filed on or before March 1, 2002;
(D)
Long-Term Care Insurance Exhibit (association edition)
(required of companies writing long-term care business), to be filed on or
before March 1, 2002;
(E)
Long-Term Care Experience Reporting Forms (association
edition) (required of companies writing long-term care business), to be filed
on or before April 1, 2002;
(F)
Diskettes or electronic filings via the Internet containing
computerized annual statement data, to be filed on or before March 1, 2002;
and
(G)
Fraternal Interest Sensitive Life Insurance Products Report
(association edition) (required of companies writing interest sensitive products),
to be filed on or before April 1, 2002.
(g)
Requirements for title insurers. Each title insurance company
shall complete and file the following blanks and forms for the 2001 calendar
year and the three quarters of the 2001 calendar year. The reports and forms
identified in paragraphs (1)(A)-(C), (2)(A)-(C), and (3)(A) of this subsection
shall be completed in accordance with the 2001 NAIC Annual Statement Instructions,
Title. The diskettes or electronic version of the filings with the NAIC via
the Internet identified in paragraph (3)(B) of this subsection shall be in
accordance with the NAIC data specifications. The electronic filings with
the NAIC shall include PDF format filing.
(1)
Reports to be filed with the department and the NAIC:
(A)
Title Annual Statement (association edition), to be filed
on or before March 1, 2002;
(B)
Management's Discussion and Analysis (a narrative document
setting forth information which enables regulators to enhance their understanding
of the insurer's financial position, results of operations, changes in capital
and surplus accounts and cash flow), to be filed on or before April 1, 2002;
and
(C)
Actuarial Opinion (the statement of a qualified actuary,
setting forth his or her opinion relating to policy reserves and other actuarial
items; required of all companies), to be attached to the annual statement
required by subparagraph (A) of this paragraph.
(2)
Reports to be filed only with the department:
(A)
Title Quarterly Statement (association edition), to be
filed on or before May 15, August 15, and November 15, 2001;
(B)
Supplemental Compensation Exhibit (association edition),
(required of Texas domestic companies only), to be filed on or before March
1, 2002; and
(C)
Schedule SIS, Stockholder Information Supplement (association
edition) (required of domestic stock companies which have 100 or more stockholders),
to be filed on or before March 1, 2002.
(D)
Texas Overhead Assessment Form (Texas edition) (required
of Texas domestic companies only), to be filed on or before March 1, 2002;
(E)
Analysis of Surplus (Texas Edition) for title companies
to be filed on or before March 1, 2002; and
(F)
Supplemental Investment Income Exhibit (Texas edition)
(shows percent of net investment income by type of investment), as an attachment
to page six of the annual statement, to be filed on or before March 1, 2002;
(3)
Reports to be filed only with the NAIC:
(A)
Officers and Directors Information (association edition),
to be filed on or before March 1, 2002; and
(B)
Diskettes or electronic filings via the Internet containing
computerized annual statement data, to be filed on or before March 1, 2002.
(h)
Requirements for health maintenance organizations and non-profit
health corporation. The HMO annual and quarterly blank used for the year ending
December 31, 2000 and prior periods is no longer available and will no longer
be used. Therefore, HMOs must use the new NAIC Health Annual Statement beginning
with the reporting quarter ending March 31, 2001. Each health maintenance
organization and non-profit health corporation shall complete and file the
following blanks and forms, and diskettes for the 2001 calendar year and the
three quarters of the 2001 calendar year. The forms, reports, and diskettes
identified in paragraphs (1)(A)-(E) and (2)(A) of this subsection shall be
completed in accordance with the 2001 NAIC Annual and Quarterly Statement
Instructions, Health. The actuarial opinion shall include the additional requirements
of the department set forth in paragraph (1)(D) of this subsection. The forms,
reports, and diskettes identified in paragraphs (1)(A) and (B), and (2)(B),
(C), and (D) of this subsection shall be completed in accordance with instructions
provided by the department. The diskettes or electronic version of the filings
with the NAIC via the Internet identified in paragraph (3) of this subsection
shall be in accordance with NAIC data specifications and instructions through
the NAIC web site. The electronic filings with the NAIC shall include PDF
format filing.
(1)
Reports to be filed both with the department and the NAIC:
(A)
2001 Health Annual Statement (association edition), to
be filed on or before March 1, 2002;
(B)
NAIC Health Quarterly Statements (association edition),
on or before May 15, August 15, and November 15, 2001. As part of each quarterly
filing, include a completed copy of Schedule E - part 2 - Special Deposits,
from the 2001 NAIC Health Annual Statement;
(C)
Management's Discussion and Analysis, (a narrative document
setting forth information which enables regulators to enhance their understanding
of the insurer's financial position, results of operations, changes in capital
and surplus accounts and cash flow), to be filed on or before April 1, 2002;
(D)
Actuarial Opinion (the statement of a qualified actuary,
setting forth his or her opinion relating to policy reserves and other actuarial
items; to be filed by all health maintenance organizations), to be attached
to the annual statement. In addition to the requirements set forth in the
2001 NAIC 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 workpapers 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 workpapers 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 workpapers 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 instructions relating to the Actuarial Certification in the 2001 NAIC
Annual Statement Instructions, Health, the department requires that the actuarial
opinion specifically list the premium deficiency reserve as an item and disclose
the amount of such reserve; and
(E)
Medicare Supplement Insurance Experience Exhibit (association
edition) (for insurers writing Medicare supplement business) to be filed on
or before March 1, 2002.
(2)
Reports to be filed only with the department:
(A)
Supplemental Compensation Exhibit (association edition),
(required of Texas domestic companies only), to be filed on or before March
1, 2002;
(B)
HMO Supplement (Texas edition), to be filed quarterly on
or before May 15, August 15, November 15, 2001;
(C)
Department formatted diskettes containing annual statement
data (diskettes provided by the department for entering of health maintenance
organization or non-profit health corporation financial statement data), to
be completed according to the instructions provided by the department and
filed with the department on or before March 1, 2002; and
(D)
Department formatted diskettes containing quarterly statement
data (diskettes provided by the department for entering of health maintenance
organization or non-profit health corporation financial statement data), to
be completed according to the instructions provided by the department and
filed with the department on or before May 15, August 15, and November 15,
2001.
(E)
Texas Overhead Assessment Form (Texas edition) (required
of Texas domestic companies only), to be filed on or before March 1, 2002;
and
(F)
HMO Supplement 2001 Annual Data (Texas edition), to be
filed on or before March 1, 2002.
(3)
Reports and diskettes or electronic filings via the Internet
to be filed only with the NAIC.
(A)
Diskettes or electronic filings via the Internet containing
computerized annual statement data, to be filed on or before March 1, 2002;
(B)
Diskettes or electronic filings via the Internet containing
computerized quarterly statement data, to be filed on or before May 15, August
15, and November 15, 2001.
(i)
Requirements for farm mutual insurers not subject to the
provisions of subsection (e) of this section relating to filing requirements
for property and casualty insurers. Each farm mutual insurance company shall
file the following completed blanks and forms for the 2001 calendar year with
the department only:
(1)
Annual statement (Texas edition) to be filed on or before
March 1, 2002;
(2)
Texas Overhead Assessment Form (Texas edition), to be filed
on or before March 1, 2002;
(3)
Actuarial Opinion to be attached to the annual statement
required by paragraph (1) of this subsection, unless otherwise exempted.
(j)
Requirements for statewide mutual assessment companies,
local mutual aid and mutual burial associations, and exempt companies. Each
statewide mutual assessment company, local mutual aid association, local mutual
burial association, and exempt company shall file the following completed
blanks and forms for the 2001 calendar year with the department only:
(1)
Annual Statement to be filed on or before April 1, 2002;
provided, however, exempt companies are not required to complete lines 22,
23, 24, 25, and 26 on page 3, the special instructions at the bottom of page
3, and pages 4, 5, 6, and 7. All other pages are required;
(2)
Texas Overhead Assessment Form (Texas edition), to be filed
on or before April 1, 2002;
(3)
Release of Contributions Form (Texas edition), to be filed
on or before April 1, 2002;
(4)
3 1/2 % Chamberlain Reserve Table (Reserve Valuation) (Texas
edition), to be filed on or before April 1, 2002;
(5)
Reserve Summary (1956 Chamberlain Table 3 1/2 %) (Texas
edition), to be filed on or before April 1, 2002;
(6)
Inventory of Insurance in Force by Age of Issue or Reserving
Year (Texas edition), to be filed on or before April 1, 2002; and
(7)
Summary of Inventory of Insurance in Force by Age and Calculation
of Net Premiums (Texas edition), to be filed on or before April 1, 2002.
(k)
Requirements for Non-profit Legal Service Corporations.
Each non-profit legal service corporation doing business as authorized by
a certificate of authority issued under the Insurance Code Chapter 23 shall
complete and file the following blanks and forms for the 2001 calendar year
with the department only. An actuarial opinion is not required. The forms
are as follows:
(1)
Annual Statement (Texas edition) to be completed and filed
on or before March 1, 2002;
(2)
Texas Overhead Assessment Form (Texas edition), to be filed
on or before March 1, 2002;
(l)
Requirements for Mexican casualty companies. Each Mexican
casualty company doing business as authorized by a certificate of authority
issued under the Insurance Code Article 8.24, shall complete and file the
following blanks and forms for the 2001 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 in accordance with
the 2001 NAIC Annual Statement Instructions, Property and Casualty, except
as provided by this section. 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 blanks or forms are
as follows:
(1)
Annual Statement (association edition); provided, however,
only pages 1 - 4, 15 - 19 and 132 are required to be completed and filed on
or before March 1, 2002;
(2)
A copy of the balance sheet and the statement of profit
and loss from the Mexican financial statement (printed or typed in English),
to be filed on or before March 1, 2002;
(3)
A copy of the official documents issued by the COMISION
NACIONAL DE SEGUROS Y FIANZAS approving the 2001 annual statement, to be filed
on or before June 30, 2002; and
(4)
A copy of the current license to operate in the Republic
of Mexico, to be filed on or before March 1, 2002.
(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 adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the
Secretary of State on January 28, 2002.
TRD-200200512
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: February 17, 2002
Proposal publication date: December 14, 2001
For further information, please call: (512) 463-6327