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Texas Insurance Code - INS § 822.158. Determination on Application for Charter Amendment

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) Not later than the 60th day after the date the application under Section 822.155 is filed, the commissioner shall determine whether:

(1) the proposed capital structure of the insurance company meets the requirements of this code;

(2) the officers, directors, and managing head of the insurance company have sufficient insurance experience, ability, standing, and good record to make success of the company probable;

(3) the applicants are acting in good faith;

(4) if the proposed amendment relates to a diminution of the insurance company's charter powers with respect to the kinds of insurance business in which the company may be engaged, all liabilities incidental to the exercise of the powers to be eliminated have been terminated or wholly reinsured;  and

(5) the property involved in an increase of capital or surplus, or both, is:

(A) properly valued;  and

(B) in the form authorized by the following provisions, to the extent those provisions apply:

(i) Subchapter B, Chapter 424,  1 other than Sections 424.052, 424.072, and 424.073;  and

(ii) Section 822.204.

(b) If the commissioner determines that the applicant has not met the requirements set out by Subsection (a), the commissioner shall deny the application.  On the applicant's request, the commissioner shall hold a hearing on a denial.  Not later than the 30th day after the date of the applicant's request for a hearing, the commissioner shall request a hearing date.

(c) If the commissioner does not deny the application under Subsection (b), the commissioner shall approve the application and the amendment shall be filed with the department.

(d) Except as provided by Subsection (e), when an amendment to an insurance company's charter is filed with the department, the amendment is effective.

(e) On approval of a certificate required under Section 822.156 and receipt of a fee in the amount determined under Chapter 202, the commissioner shall issue to the directors a certified copy of an amendment authorizing the issuance of shares of stock without par value that is filed under this section.  The amendment is effective on issuance of the certified copy of the amendment.

1  V.T.C.A., Insurance Code § 424.051 et seq.
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Cite this article: FindLaw.com - Texas Insurance Code - INS § 822.158. Determination on Application for Charter Amendment - last updated January 01, 2024 | https://codes.findlaw.com/tx/insurance-code/ins-sect-822-158/

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