§ 4053.107 — FINANCIAL EXAMINATION.

Texas § 4053.107

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 4053.107. FINANCIAL EXAMINATION. (a) As the commissioner considers necessary, a managing general agent shall submit to an examination of the agent's financial condition and the agent's compliance with the laws of this state affecting the conduct of the agent's business.
(b) The examination may be conducted by:
(1) the commissioner;
(2) one or more commissioned examiners; or
(3) a certified public accountant or other person or firm qualified to perform those examinations.
(c) The managing general agent shall pay the examination expenses in an amount the commissioner certifies as just and reasonable.
(d) A person with whom another state contracts to perform any examination initiated by the other state of a managing general agent licensed under this chapter shall register with and provide the following information to the department's chief examiner:
(1) the person's name;
(2) if the person is not an individual, the identity of each examiner or other person who will perform any part of the examination;
(3) the name of the state that contracted with the person;
(4) the identity of the managing general agent to be examined;
(5) a description of each issue that the person has been contracted to examine;
(6) an estimate of the examination costs to be charged to the managing general agent to be examined;
(7) a copy of any contract between the person and the state regulatory body that initiated the examination and the letter authorizing the examination; and
(8) a list of the previous examinations conducted on the same managing general agent on behalf of any state within the last three years.
(d-1) On accepting a person's registration under Subsection (d), the department shall send written confirmation of the acceptance to:
(1) the person;
(2) the managing general agent to be examined; and
(3) the state regulatory body that initiated the examination.
(e) It is a violation of this code for a person to accept compensation from multiple states for the same examination, if doing so results in duplicative costs to the managing general agent being examined. It is not a violation of this code for:
(1) an examiner to conduct an examination of a managing general agent for the benefit of multiple states in a coordinated examination; and
(2) the examiner to accept compensation from the states participating in the coordinated examination to reduce the examination costs to the managing general agent being examined.

Legislative History

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005. Amended by: Acts 2009, 81st Leg., R.S., Ch. 1030 (H.B. 4359 ), Sec. 3, eff. June 19, 2009. Acts 2011, 82nd Leg., R.S., Ch. 185 (S.B. 1229 ), Sec. 3, eff. May 28, 2011.