28 TAC §7.67
The Commissioner of Insurance adopts new §7.67, concerning
2004 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 2004 calendar
year. The new section is adopted with changes to the proposed text as published
in the December 24, 2004, issue of the
Texas Register
(29 TexReg 11899).
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 2004 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 2004 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 2004 annual and 2004 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.
The department has corrected typographical errors and added a catch line to
subsection (i) for consistency and clarification.
No comments were received regarding the new section.
The new section is adopted 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 3.77, 9.22, 9.47, 21.49, 21.54, 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,
982.004, 982.101, 982.103, 984.101 - 984.103, 984.153, 984.201, and 984.202
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, 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
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.
§7.67.Requirements for Filing the 2004 NAIC Quarterly and 2004 NAIC Annual Statements, Other Reporting Forms, and Electronic Data Filings with the NAIC.
(a)
Scope. This section provides insurers and other regulated
entities with the requirements for the 2004 quarterly statements, 2004 annual
statement, other reporting forms, and electronic data filings with 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 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; 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 2004 NAIC quarterly statement blanks, the 2004 NAIC annual statement blanks,
the related instruction manuals, and other supplemental reporting forms specified
in this section. The forms are available from the Texas Department of Insurance,
Financial Analysis and Examinations Activity, 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 produced as part of the software
available from vendors. 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
electronic data filings with the NAIC following the applicable specifications.
(b)
Definitions. 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 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
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 Insurance Code
Chapter 843. Insurers described in this subsection and engaged in business
authorized under Insurance Code Chapter 843 may have additional reporting
requirements under subsection (h) of this section. Insurers described under
this subsection that wrote direct health premiums for the calendar year ending
December 31, 2004 may elect to file on the NAIC Health statement blank for
the three quarters of 2004 and the calendar year 2004 if the insurer wrote
100% of "health premiums" as the lines of business defined in the 2004 NAIC
Health Annual Statement Instructions. If a reporting entity qualifies under
this subsection 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 the department to change to another type of annual statement. Insurers
filing the 2004 NAIC Life, Accident and Health blank and the related NAIC
supplemental forms and reports identified in these subsections shall complete
filings in accordance with the 2004 NAIC Annual Statement Instructions, Life,
Accident and Health. Life insurers meeting the test set forth in this subsection
to file the 2004 NAIC Health blank and the related NAIC supplemental forms
and reports identified in these subsections shall complete filings in accordance
with the 2004 NAIC Health Annual Statement Instructions. 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:
(1)
Domestic insurer reports and forms in paper copy to be
filed with the department and the NAIC as follows:
(A)
2004 NAIC Life, Accident and Health Annual Statement, including
the printed investment schedule detail, due on or before March 1, 2005 (stipulated
premium insurance companies, April 1, 2005);
(B)
2004 NAIC Life, Accident and Health Annual Statement of
the Separate Accounts for the 2004 calendar year (required of companies maintaining
separate accounts), due on or before March 1, 2005;
(C)
2004 NAIC Life, Accident and Health Quarterly Statements,
due on or before May 15, August 15, and November 15, 2004. 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)
2004 Health Annual Statement, including the printed investment
schedule detail, due on or before March 1, 2005 if the company qualifies as
described in this subsection;
(E)
2004 Health Quarterly Statements, due on or before May
15, August 15, and November 15, 2004 if the company qualifies as described
in this subsection;
(F)
all the paper copies of the NAIC Annual and Quarterly Supplements
(Note: the Schedule SIS and the Supplemental Compensation Exhibit are filed
only with the department) prepared and filed on dates described in the NAIC
blanks and instructions;
(G)
Management's Discussion and Analysis, due on or before
April 1, 2005; and
(H)
Statement of Actuarial Opinion due on or before March 1,
2005. 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, Stockholder Information Supplement due on
or before March 1, 2005. This filing is also required if filing a Health Annual
Statement, as applicable;
(B)
Supplemental Compensation Exhibit, due on or before March
1, 2005 (stipulated premium companies, April 1, 2005). This filing is also
required if filing a Health Annual Statement, as applicable;
(C)
The Texas Health Insurance Risk Pool shall file the 2004
NAIC Life, Accident and Health Annual and 2004 NAIC Quarterly Statements as
follows:
(i)
2004 NAIC Life, Accident and Health Annual Statement, with
only pages 1 - 5, and Schedule E, Part 1, Part 2, and Part 3 to be completed
and filed on or before March 1, 2005; and
(ii)
2004 NAIC Life, Accident and Health Quarterly Statement,
with only pages 1 - 5, and Schedule E, Part 1-Cash to be completed and filed
on or before May 15, August 15, and November 15, 2004.
(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 Form (Texas Edition), due on
or before March 1, 2005 (stipulated premium insurance companies, April 1,
2005);
(E)
Analysis of Surplus (Texas Edition) for life, accident
and health insurers to be filed on or before March 1, 2005 (stipulated premium
insurance companies, April 1, 2005).
(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)
NAIC Annual Statement electronic filing and PDF filing,
due on or before March 1, 2005 (stipulated premium insurance companies, April
1, 2005);
(B)
NAIC Separate accounts electronic filing and PDF filing,
due on or before March 1, 2005;
(C)
NAIC Quarterly statement electronic filing and PDF filing,
due on or before May 15, August 15, and November 15, 2004. 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 NAIC annual and quarterly supplemental electronic filings
together with the related PDF filings (except for Schedule SIS and Supplemental
Compensation Exhibit which are only filed with the department in paper copy)
due on the dates specified in the forms and instructions;
(5)
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 2004 NAIC Life, Accident and Health Annual Statement or the
2004 NAIC 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 §884.304, 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 2004 NAIC Life, Accident and Health Annual Statement or
the 2004 NAIC 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 Insurance Code §823.004 shall file an Analysis
of Surplus (Texas Edition) for life, accident and health insurers with the
department.
(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 an NAIC property
and casualty annual statement for the 2003 calendar year or had gross written
premiums in 2004 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 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 2004 NAIC 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:
(1)
Domestic insurer reports and forms in paper copy to be
filed with the department and the NAIC as follows:
(A)
2004 NAIC Property and Casualty Annual Statement, due on
or before March 1, 2005;
(B)
2004 NAIC Property and Casualty Quarterly Statements, due
on or before May 15, August 15, and November 15, 2004;
(C)
2004 NAIC Combined Property/Casualty Annual Statement,
to be filed on or before May 1, 2005. This statement is required only for
those affiliated insurers that wrote more than $35 million in direct premiums
as a group in calendar year 2004, as disclosed in Schedule T of the Annual
Statement(s);
(D)
all the paper copies of the NAIC Annual and Quarterly Supplements
prepared and filed on dates described in the NAIC blanks and instructions.
Schedule SIS and the Supplemental Compensation Exhibit are filed only with
the department; and
(E)
the actuarial opinion submitted shall be prepared in accordance
the 2004 NAIC Annual Statement instructions.
(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, 2005;
(B)
Supplemental Compensation Exhibit, due on or before March
1, 2005;
(C)
Texas Overhead Assessment Form (Texas Edition), due on
or before March 1, 2005;
(D)
Supplement for County Mutuals (Texas Edition) (required
of Texas county mutual companies only), due with the 2004 annual statement
on or before March 1, 2005;
(E)
Texas Supplemental A for County Mutuals (Texas Edition)
(required of Texas county mutual companies only), due with the annual statement
on or before March 1, 2005; and
(F)
Analysis of Surplus (Texas Edition) for property and casualty
insurers except Texas county mutual companies, to be filed on or before March
1, 2005.
(G)
The Texas Windstorm Insurance Association shall complete
and file the following:
(i)
2004 NAIC Property and Casualty Annual Statement, to be
filed on or before March 1, 2005;
(ii)
2004 NAIC Property and Casualty Quarterly Statement, to
be filed on or before May 15, August 15, and November 15, 2004; and
(iii)
Management's Discussion and Analysis, to be filed on
or before April 1, 2005.
(iv)
The Texas Windstorm Insurance Association is not required
to file any reports with the NAIC.
(H)
The Texas FAIR Plan Association shall complete and file
the following:
(i)
2004 NAIC Property and Casualty Annual Statement, to be
filed on or before March 1, 2005;
(ii)
2004 NAIC Property and Casualty Quarterly Statement, to
be filed on or before May 15, August 15, and November 15, 2004;
(iii)
Actuarial Opinion due on March 1, 2005; and
(iv)
Management's Discussion and Analysis, to be filed on or
before April 1, 2005.
(v)
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)
NAIC Annual Statement electronic filing and PDF filing,
due on or before March 1, 2005;
(B)
NAIC Quarterly statement electronic filing and PDF filing,
due on or before May 15, August 15, and November 15, 2004;
(C)
All NAIC annual and quarterly supplemental electronic filings
together with the related PDF filings (except for electronic Schedule SIS
and Supplemental Compensation Exhibit) due on the dates specified in the forms
and instructions;
(D)
Electronic combined insurance exhibit, due on or before
May 1, 2005;
(E)
Combined Annual Statement electronic filing and PDF filing
due on or before May 1, 2005;
(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 Insurance Code §823.004 shall file an Analysis
of Surplus (Texas Edition) for property and casualty insurers with the department
(f)
Requirements for fraternal benefit societies. Each fraternal
benefit society shall complete and file the following blanks, forms, and electronic
data filings for the 2004 calendar year and the three quarters for the 2004
calendar year. The forms and reports identified in this subsection shall be
completed in accordance with the 2004 NAIC 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:
(1)
Domestic insurer reports and forms in paper copy to be
filed with the department and the NAIC as follows:
(A)
2004 NAIC Fraternal Annual Statement, including the printed
investment schedule detail, due on or before March 1, 2005;
(B)
2004 NAIC Fraternal Annual Statement of the Separate Accounts
(required of companies maintaining separate accounts), due on or before March
1, 2005;
(C)
2004 Fraternal Quarterly financial statement, due on or
before May 15, August 15, and November 15, 2004;
(D)
all the paper copies of the NAIC Annual and Quarterly Supplements
prepared and filed on dates described in the NAIC blanks and instructions.
The Schedule SIS and the Supplemental Compensation Exhibit are filed only
with the department.
(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, 2005;
(B)
Texas Overhead Assessment Form (Texas Edition), due on
or before March 1, 2005; and
(C)
Analysis of Surplus (Texas Edition) for fraternal benefit
societies to be filed on or before March 1, 2005.
(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)
NAIC Annual Statement electronic filing and PDF filing,
to be filed on or before March 1, 2005;
(B)
NAIC Separate Accounts electronic filing and PDF filing
due on or before March 1, 2005;
(C)
NAIC Quarterly statement electronic filing and PDF filing,
due on or before May 15, August 15, and November 15, 2004;
(D)
all NAIC 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.
(g)
Requirements for title insurers. Each title insurance company
shall complete and file the following blanks and forms for the 2004 calendar
year and the three quarters of the 2004 calendar year. The reports and forms
identified in this subsection shall be completed in accordance with the 2004
NAIC 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:
(1)
Domestic insurer reports and forms in paper copy to be
filed with the department and the NAIC as follows:
(A)
2004 NAIC Title annual statement, including printed investment
schedule details, due on or before March 1, 2005;
(B)
2004 Title quarterly statement, due on or before May 15,
August 15, and November 15, 2004;
(C)
all the paper copies of the NAIC Annual and Quarterly Supplements
prepared and filed on dates described in the NAIC blanks and instructions.
The Schedule SIS and the Supplemental Compensation Exhibit are filed only
with the department. The Supplemental Schedule of Business Written by Agency
is not required.
(D)
Management's Discussion and Analysis, due on or before
April 1, 2005; and
(E)
Statement of Actuarial Opinion due on or before March 1,
2005.
(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, 2005;
(B)
Schedule SIS, Stockholder Information Supplement due on
or before March 1, 2005;
(C)
Texas Overhead Assessment Form (Texas Edition), due on
or before March 1, 2005; and
(D)
Analysis of Surplus (Texas Edition) for title companies,
to be filed on or before March 1, 2005.
(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)
NAIC Annual Statement electronic filing and PDF filing,
due on or before March 1, 2005;
(B)
NAIC Title quarterly statement electronic filing and PDF
filing, due on or before May 15, August 15, and November 15, 2004;
(C)
All NAIC annual and quarterly supplemental electronic filings
together with the related PDF filings (except for Schedule SIS and Supplemental
Compensation Exhibit which are only filed 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, 2005; and
(E)
Statement of Actuarial Opinion due on or before March 1,
2005;
(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 title insurers.
(h)
Requirements for health maintenance organizations. Each
health maintenance organization licensed pursuant to Insurance Code Chapter
843 shall use the NAIC Health blanks to file the 2004 annual and 2004 quarterly
information. 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
filings. The NAIC forms and reports required in this subsection shall be completed
in accordance with the 2004 NAIC Annual and Quarterly 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 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)
2004 NAIC Health Annual Statement, including printed investment
schedule detail, due on or before March 1, 2005;
(B)
2004 NAIC Health Quarterly Statements, due on or before
May 15, August 15, and November 15, 2004. With each quarterly filing, include
a completed copy of Schedule E--part 3--Special Deposits, from the 2004 NAIC
Health Annual Statement blank;
(C)
Management's Discussion and Analysis, to be filed on or
before April 1, 2005; and
(D)
Statement of Actuarial Opinion due on or before March 1,
2005. In addition to the requirements set forth in the 2004 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 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 instructions relating to the Actuarial Certification in the 2004 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.
(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, 2005;
(B)
Texas HMO Supplement (Texas Edition), due on or before
May 15, August 15, and November 15, 2004, and March 1, 2005;
(C)
department formatted diskettes containing annual statement
data (diskettes provided by the department), to be completed according to
the instructions provided by the department, due on or before March 1, 2005;
(D)
department formatted diskettes containing quarterly statement
data (diskettes provided by the department), to be completed according to
the instructions provided by the department, due on or before May 15, August
15, and November 15, 2004; and
(E)
Texas Overhead Assessment Form (Texas Edition), due on
or before March 1, 2005.
(3)
Electronic filings with the NAIC by domestic and foreign
insurers.
(A)
NAIC Annual Statement electronic filing, and PDF filing,
due on or before March 1, 2005;
(B)
NAIC Quarterly statement electronic filing and PDF filing,
due on or before May 15, August 15, and November 15, 2004;
(C)
All NAIC annual and quarterly supplemental electronic filings
together with the related PDF filings (except for Schedule SIS and Supplemental
Compensation Exhibit which are only filed 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, 2005;
(E)
Management Discussion and Analysis due on or before April
1, 2005.
(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 2004 calendar year with the department only, on or before
March 1, 2005:
(1)
Annual statement (Texas Edition);
(2)
Texas Overhead Assessment Form (Texas Edition); and
(3)
Statement of Actuarial Opinion, unless otherwise exempted.
(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 2004 calendar year with the department
only, on or before April 1, 2005:
(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 Form (Texas Edition);
(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 Non-profit Legal Service Corporations.
Each non-profit legal service corporation doing business as authorized by
a certificate of authority issued under Chapter 961 shall complete and file
the following blanks and forms for the 2004 calendar year with the department
only. An actuarial opinion is not required. The following forms are to be
filed on or before March 1, 2005:
(1)
Annual Statement (Texas Edition); and
(2)
Texas Overhead Assessment Form (Texas Edition).
(l)
Requirements for Mexican casualty companies. Each Mexican
casualty 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 2004 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 2004 NAIC
Annual Statement Instructions, Property and Casualty, except as provided by
this subsection. 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, 2005:
(1)
2004 NAIC Property and Casualty Annual Statement; provided,
however, only pages 1 - 4, and 110 (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 2004 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 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 February 28, 2005.
TRD-200500890
Gene C. Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Effective date: March 20, 2005
Proposal publication date: December 24, 2004
For further information, please call: (512) 463-6327