The Texas Division of Insurance coverage (“TDI”) adopted a brand new group capital calculation submitting requirement that’s efficient on November 7, 2022. The brand new rule, present in 28 Texas Administrative Code §7.215 (“Part 7.215”), relies on the Nationwide Affiliation Insurance coverage Commissioners (“NAIC”) mannequin regulation that requires an insurer’s final management individual in an insurance coverage holding firm system to file a bunch capital calculation concurrently with the insurer’s annual registration (Type B). New Part 7.215 is meant to assist TDI:
- Determine and quantify dangers in sure holding firm methods by making these methods extra clear;
- Align TDI’s guidelines with NAIC updates and accreditation necessities and
- Meet the situations established in coated agreements between the USA and its European Union and United Kingdom counterparts.
Part 7.215 requires the final word controlling individual of an insurer in an insurance coverage holding firm system, for which Texas is the lead state, to yearly file a bunch capital calculation if the insurance coverage holding firm system is both (1) topic to a coated settlement outlined by Texas Insurance coverage Code Chapter 493, Subchapter C, or (2) is required by the USA Federal Reserve Board to carry out a bunch capital evaluation and the Federal Reserve Board doesn’t share the evaluation with TDI. As well as, there are a number of detailed exceptions to the submitting requirement for sure insurance coverage holding firm methods. The brand new rule additionally permits the TDI Commissioner the flexibility to require different insurers to file a bunch capital calculation after contemplating sure discretionary standards.
The submitting should be made concurrently with the holding firm act registration assertion until an extension of time is granted by TDI Commissioner. The TDI Commissioner may additionally decide the group capital calculation submitting kind and lengthen the submitting deadline.
The complete textual content of Part 7.215 will be discovered here.