To get a charter for a limited purpose subsidiary life insurance company, the incorporators must pay a charter fee and file specified application materials with the department.
Sec. 841.405. APPLICATION FOR CERTIFICATE OF AUTHORITY. To obtain a charter for a limited purpose subsidiary life insurance company, the incorporators of the company shall pay to the department a charter fee in an amount determined under Chapter 202 and file with the department: (1) an application for charter on the form prescribed by, and containing the information prescribed by, the commissioner; (2) the company's articles of incorporation; (3) an affidavit made by the company's president, vice president, treasurer, or chief financial officer stating that: (A) the minimum capital and surplus requirements of this subchapter are satisfied; (B) the capital and surplus are the bona fide property of the company; (C) the information in the articles of incorporation is true and correct; (D) the proposed organization and operation of the limited purpose subsidiary life insurance company comply with all applicable provisions of this subchapter; (E) the limited purpose subsidiary life insurance company's investment policy reflects and takes into account the liquidity of assets and the reasonable preservation, administration, and management of those assets with respect to the risks associated with the reinsurance contract; and (F) any reinsurance contract and any arrangement for securing the limited purpose subsidiary life insurance company's obligations under the reinsurance contract, including any agreements or other documentation to implement the arrangement; (4) a business plan that includes pro forma financial statement projections that demonstrate how the limited purpose subsidiary life insurance company will comply with Section 841.412; (5) a copy of any proposed guaranty that demonstrates how compliance with Sections 841.412 and 841.417 will be achieved; (6) an opinion of a qualified independent actuary acceptable to the commissioner that the methodology and assumptions used to set and discount reserves make good and sufficient provision for the risk assumed by the limited purpose subsidiary life insurance company, including significant stress tests on key assumptions; and (7) any other statement or document required by the commissioner to evaluate the limited purpose subsidiary life insurance company's application for a certificate of authority. Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161), Sec. 1, eff. June 17, 2011.