TITLE 28.INSURANCE

Part 1. TEXAS DEPARTMENT OF INSURANCE

Chapter 7. CORPORATE AND FINANCIAL REGULATION

Subchapter A. EXAMINATION AND FINANCIAL ANALYSIS

28 TAC §7.66

The Commissioner of Insurance adopts the repeal of §7.66 concerning the 1996 annual statement and 1997 quarterly statements, other reporting forms, and diskettes necessary to report information concerning the financial condition and business operations and activities of insurers and other entities regulated by the department. The repeal of the section is adopted without changes to the proposal as published in the October 31, 2003 issue of the Texas Register (28 TexReg 9388) and will not be republished.

The repeal of the section is necessary to permit the simultaneous adoption of a new §7.66 that is published elsewhere in this issue of the Texas Register. The new §7.66 adopts by reference the 2003 annual and quarterly statement blanks, other reporting forms, electronic data filings with the National Association of Insurance Commissioners via the Internet and instructions to be used by insurers and certain other entities regulated by the Texas Department of Insurance when reporting their financial condition and business operations and activities of the 2003 calendar year.

The repeal of the section will eliminate an obsolete section. The reporting forms adopted under the repealed section have been filed and the due dates for filing the 1996 annual statements, 1997 quarterly statements and other reports have passed, therefore the repealed section is no longer necessary.

No comments were received.

The repeal of the section is adopted under the Insurance Code §§802.001-802.003, 802.051-802.056, and 36.001. Sections 802.001-802.003 and 802.051-802.056 (formerly Article 1.11) 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. Section 36.001 provides that the commissioner 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.

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 December 16, 2003.

TRD-200308611

Gene C. Jarmon

General Counsel and Chief Clerk

Texas Department of Insurance

Effective date: January 5, 2004

Proposal publication date: October 31, 2003

For further information, please call: (512) 463-6327


28 TAC §7.66

The Commissioner of Insurance adopts new §7.66 concerning 2003 annual and quarterly statement blanks, other reporting forms, electronic data filings with the National Association of Insurance Commissioners (NAIC) via the Internet and instructions to be used by insurers and certain other entities regulated by the Texas Department of Insurance when reporting their financial condition and business operations and activities of the 2003 calendar year. The new section is adopted without changes to the proposed text as published in the October 31, 2003 issue of the Texas Register (28 TexReg 9389) and will not be republished.

The new section is necessary to adopt the reporting forms and instructions to be used by insurers and certain other entities regulated by the department when reporting their financial condition and business operations and activities during 2003 and the requirement to file such completed statement blanks and other reporting forms, including diskettes or electronic filings with the NAIC via the Internet. The annual and quarterly statement blanks, other reporting forms, and diskettes or electronic filings with the NAIC via the Internet are required by statute for reporting the financial condition and business operations and activities conducted during the 2003 calendar year. The information provided is necessary for the department to monitor the solvency, business activities and statutory compliance of the insurers and other entities regulated by the department. Most of the forms adopted by the section have been promulgated by the NAIC and are used by other state insurance regulators. The use of these forms promotes uniformity and efficiency in the regulation of insurance companies and other entities regulated by the department. These forms are reviewed each year to assure that the information required to complete the form is necessary for the department to perform its duties.

The new section defines terms relevant to the statement blanks and reporting forms; provides the dates by which certain reports are to be filed; and adopts by reference the NAIC 2003 annual and 2003 quarterly statement blanks, other reporting forms and instructions for reporting the financial condition and business operations and activities; and requires insurance companies and certain other regulated entities to file such annual and quarterly statements and other reporting forms with the department and/or the NAIC as directed. The required documents will provide financial information to the public and regulatory agencies, and will be used by the department to monitor the financial condition of insurers and other regulated entities licensed in Texas to assure financial solvency and compliance with applicable laws and accounting requirements.

No comments were received.

The new section is adopted under the Insurance Code §§802.001-802.003 and 802.051-802.056 (formerly Article 1.11), 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 3.77, 9.22, 9.47, 21.49, 21.54, and §§841.225 (formerly Article 3.07), 842.003, 842.052, 842.101, 842.201, 842.202, 842.253 (formerly Article 20.02), 843.151 (formerly Article 20A.22), 843.155 (formerly Article 20A.10), 861.254, 861.255 (formerly articles 8.07, 8.08, 8.21), 862.001, 862.003 (formerly articles 6.11, 6.12), 882.001 (formerly Article 11.19), 882.003 (formerly Article 11.06), 883.001, 883.002, 883.204, 883.205 (formerly Article 15.15), 883.002 (formerly Article 15.16), 884.256 (formerly Article 22.06), 885.311, 885.401, 885.403-885.406, 885.414 (formerly Article 10.30), 887.004, 887.009 (formerly Article 14.39), 887.060, 887.064, 887.303, 887.401-887.407 (formerly Article 14.15), 911.001, 911.101 (formerly Article 16.24), 911.304 (formerly Article 16.18), 912.002 (formerly Article 17.22), 912.001, 912.059, 912.151, 912.152, 912.154, 912.156, 912.157, 912.201-912.203, 912.251-912.253, 912.301, 912.305, 912.306, 912.751-912.753, 912.801-912.804 (formerly Article 17.25), 941.252 (formerly Article 18.12), 942.201, 942.202 (formerly Article 19.08), 961.002 (formerly Article 23.26), 961.003, 961.052, 961.101, 961.202, 961.205 (formerly Article 23.02), 982.004, 982.251-982.254 (formerly Article 3.27-2), 982.004, 982.101, 982.103 (formerly Article 3.20-1), 984.001, 984.002, 984.051, 984.052, 984.101-984.103, 984.151-984.153, 984.201-984.204 (formerly Article 8.24), which 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; §§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, 982.302-982.306 (formerly Article 21.43), which provide 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; §§844.001-844.005, 844.051-844.054, 844.101 (formerly Article 21.52F), which authorize the commissioner to adopt rules to implement the regulation of nonprofit health corporations holding a certificate of authority under Insurance Code, Title 2, Chapter 844; Article 21.39, 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 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.

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 December 16, 2003.

TRD-200308610

Gene C. Jarmon

General Counsel and Chief Clerk

Texas Department of Insurance

Effective date: January 5, 2004

Proposal publication date: October 31, 2003

For further information, please call: (512) 463-6327