Sec. 823.104. PROHIBITION OF ACTION TO AVOID APPLICATION OF SUBCHAPTER. (a) A domestic insurer may not enter into transactions with persons in the insurer's insurance holding company system if:
(1) the transactions are part of a plan or series of similar transactions; and
(2) the purpose of entering into the transactions is to avoid a threshold amount provided by Section 823.103.
(b) If the commissioner determines that over any 12-month period a domestic insurer enters into transactions that violate Subsection (a), the commissioner may:
(1) consider the cumulative effect of the transactions; and
(2) apply:
(A) Section 823.103; or
(B) sanctions under this code.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1087 (H.B. 3460), Sec. 5, eff. June 14, 2013.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle B - Organization of Regulated Entities
Chapter 823 - Insurance Holding Company Systems
Subchapter C. Transactions of Registered Insurer
Section 823.101. Standards for Transaction Within an Insurance Holding Company System
Section 823.103. Notice of and Commissioner's Decision on Specified Transactions
Section 823.104. Prohibition of Action to Avoid Application of Subchapter
Section 823.105. Type of Authority Provided
Section 823.106. Standards of Review; Reasons for Disapproval