§ 4152.001 — DEFINITIONS.

Texas § 4152.001

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 4152.001. DEFINITIONS. In this chapter:
(1) "Actuary" means a member in good standing of the American Academy of Actuaries.
(2) "Broker" means a person, other than an officer or employee of an insurer, who solicits, negotiates, or places reinsurance business on behalf of an insurer and who may not exercise the authority to bind reinsurance on behalf of that insurer.
(3) "Control" has the meaning described by Sections 823.005 and 823.151 .
(4) "Insurer" means a commercially domiciled insurer or other person legally organized in this state to engage in the business of insurance as an insurance company, including:
(A) a capital stock insurance company;
(B) a mutual insurance company;
(C) a title insurance company;
(D) a fraternal benefit society;
(E) a local mutual aid association;
(F) a statewide mutual assessment company;
(G) a county mutual insurance company;
(H) a Lloyd's plan;
(I) a reciprocal or interinsurance exchange;
(J) a stipulated premium company;
(K) a group hospital service corporation;
(L) a farm mutual insurance company; and
(M) a risk retention group.
(5) "Manager" means a person who has the authority to bind reinsurance or who manages all or part of the reinsurance business of an insurer, including the management of a separate division, department, or underwriting office, and who acts as an agent for that insurer. The term does not include:
(A) an employee of the insurer;
(B) a manager of the United States branch of an alien insurer;
(C) an underwriting manager who, under a contract, manages all of the reinsurance operations of an insurer, who is under common control with the insurer under Chapter 823 , and whose compensation is not based on the volume of premiums written; or
(D) a manager of a group, association, pool, or other organization of insurers who engages in joint underwriting or joint reinsurance and who is subject to examination by the insurance commissioner or other appropriate officer of the state in which the manager's principal business office is located.
(6) "Person" means an individual or a corporation, partnership, association, or other private legal entity.
(7) "Qualified United States financial institution" means an institution that is:
(A) organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or a state; and
(B) regulated, supervised, and examined by United States federal or state authorities who have regulatory authority over banks and trust companies.
(8) "Reinsurance" means a written contract that for consideration transfers an insurance risk of loss between insurers and indemnifies a ceding insurer against all or part of the loss that the ceding insurer may sustain under an insurance policy the ceding insurer has issued or assumed. The term does not include a contract for the bulk sale, transfer, and assumption of direct insurance policy liability to the insureds.
(9) "Reinsurance intermediary" means a broker or manager.
(10) "Reinsurer" means an insurer who has the authority to assume reinsurance, including retrocessions. The term includes a retrocessionaire.

Legislative History

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.