1. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Domestic insurance company--An insurance company or other entity licensed under the Insurance Code and organized under the laws of the State of Texas.
   2. (2) Alien insurance company--An insurance company organized under the laws of any foreign country that has obtained original entry into the United States through the State of Texas.
   3. (3) Affiliate--A person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with the person specified.
   4. (4) Control--The term "control," including the terms "controlling," "controlled by," and "under common control with," means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or non-management services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control shall be presumed to exist if any person, directly or indirectly, or with members of the person's immediate family, owns, controls, or holds with the power to vote, or if any person other than a corporate officer or director of a person holds proxies representing, 10% or more of the voting securities or authority of any other person, or if any person by contract or agreement is designated as an attorney-in-fact for a Lloyd's plan insurer under the Insurance Code, Article 18.02, or for a reciprocal or inter-insurance exchange under the Insurance Code, Articles 19.02 and 19.10. This presumption may be rebutted by a showing made in the manner provided by the Insurance Code, Article 21.49-1, §3(j), that control does not exist in fact and that the person rebutting the presumption is in compliance with §5(a)-(c) of that article.
   5. (5) Insurance holding company system--A company structure which consists of two or more affiliated persons, one or more of which is an insurer.
   6. (6) Person--An individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of the foregoing acting in concert. The term does not include any securities broker performing no more than the usual and customary broker's function.

2. (b) Filing requirements. The domestic insurer must be a member of an insurance holding company system or a nonprofit legal service corporation in order to avail itself of the provisions of the Insurance Code, Article 1.28. A health maintenance organization (HMO) may only avail itself of the provisions of the Insurance Code, Article 1.28, if it is a member of an insurance holding company system which has an insurer within the system licensed in Texas. The notice of intent to relocate books and records consists of Form TDI/BR-93 or TDI/BR-93-NP, as appropriate, and any new or amended contract(s), agreement(s), or arrangement(s) for the furnishing or receiving of services or facilities on a regular or systematic basis, pursuant to the Insurance Code, Article 21.49-1, §4(d)(2), and §7.204(b) of this title (relating to Commissioner's Approval Required), which have not been previously filed. A filing fee of $150 shall accompany the notice of intent to relocate books and records in addition to any filing fee required by §7.201(a)(2) of this title (relating to Forms Filings). Submit the complete notice of intent to relocate books and records to: Holding Company Activity, Mail Code 305-4A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. The notice of intent to relocate books and records will not be considered complete until the applicant is in compliance with the Insurance Code, Article 21.49-1, with regard to any contracts, arrangements, or agreements required under that article. The notice of intent to relocate books and records will also not be considered complete if there are any outstanding unpaid fines or penalties or any issuance of a notice of intent to institute disciplinary action regarding prior relocation of books and records without proper notification to the agency. A domestic or alien insurer that has already received approval under this section to move its books, records, accounts, and/or offices and now desires to amend information, such as a change in location of books and records must submit another complete notice of intent to relocate books and records. If the company is only changing its mailing address or chartered name or chartered home office, a new filing is not necessary.

   1. (1) Item 1. Provide information regarding the domestic insurance company's name, chartered city, and state of domicile, exactly as it appears on the company's certificate of authority.
   2. (2) Item 2. Provide the office location address of the books and records. Do NOT use a post office box only. If more than one location is to be maintained, attach a separate sheet to Form TDI/BR-93 describing the specific types of books, records, and accounts being maintained at each location and the complete street and mailing address of each location. In the case of principal offices, describe the type of activity to be conducted at each location.
   3. (3) Item 3. Provide the mailing address for the domestic insurance company. This will be the only mailing address utilized by the Texas Department of Insurance.
   4. (4) Item 4. Provide the name and complete address of the ultimate or immediate or intermediate controlling person of the affiliated insurance holding company system of the domestic insurer. If there is more than one controlling person, attach a separate sheet setting forth the name, street, and mailing address for each.
   5. (5) Item 5. The certification must be completed by an officer of the domestic insurer that is an affiliate of an insurance holding company system or by an officer of a nonprofit legal services corporation.
   6. (6) Item 6. This certification must be completed if the notice of intent to relocate books and records is being made by a Texas health maintenance organization that DOES NOT have a Texas-domiciled affiliate within an insurance holding company system. The certification by affidavit must indicate that the principal insurer in the holding company system is in compliance with the holding company statutes of that state. An affidavit accompanying a copy of the original certification from the appropriate domiciliary state insurance department may be submitted in lieu of the certification required by Item 6. An organizational chart showing the state of domicile of each insurer within the holding company system is required with this certification.

3. (c) If a domestic or alien insurer wishes to return its books and records to Texas, an affidavit must be filed that sets forth the following information:

   1. (1) mailing address;
   2. (2) date of return;
   3. (3) physical location of books and records; and
   4. (4) revocation of power of attorney appointing a person in Texas to accept service of process.
4. (d) Form TDI/SOP. Form TDI/SOP must be completed by the domestic insurer to appoint a person located in the State of Texas to accept service of process on its behalf.
5. (e) Form TDI/SOP-CP. Form TDI/SOP-CP must be completed by the controlling person to appoint a person located in the State of Texas to accept service of process on its behalf. If the controlling person is a natural person, it will not be necessary for the service of process Form TDI/SOP-CP to be completed for that individual.

6. (f) Additional requirements. In addition to the filing requirements under subsection (b) of this section, the notice of intent to relocate books and records shall also include at least the following:

   1. (1) current location of books and records;
   2. (2) reason for moving the books, records, accounts, and/or principal office(s);
   3. (3) impact of the relocation of the books, records, accounts, and/or principal office(s) on the policyholders;
   4. (4) explanation and description of control mechanisms in place to assure the effectiveness, efficiency, and reconciliation of the books, records, and accounts to the corporate records; and
   5. (5) explanation of how the relocation of the books, records, accounts, and/or office(s) outside the state of Texas maintains the domestic insurer's direct supervision, management, and control of the books, records, accounts, and/or office(s).
7. (g) The Texas Department of Insurance adopts by reference forms with instructions to be used by a domestic insurance company as the means of giving written notice to the commissioner of insurance of its intent to move all or any portion of its books, records, accounts, and office(s) outside the State of Texas under the provisions of the Insurance Code, Article 1.28. The forms are identified as Form TDI/BR-93 Notice of Intent of Domestic Insurance Company to Move its Books, Records, Accounts, and/or Principal Office(s) Outside the State of Texas; Form TDI/BR-93-NP, Notice of Intent of Domestic Insurance Company that is a Nonprofit Legal Services Corporation to Move its Books, Records, Accounts, and/or Principal Office(s) Outside the State of Texas; Form TDI/SOP, Service of Process Form for Corporate Controlling Person. These forms are published by the Texas Department of Insurance and may be obtained from the Holding Company Activity, Mail Code 305-4A, Texas Department of Insurance, 333 Guadalupe, P.O. Box 149104, Austin, Texas 78714-9104.

Source Note:The provisions of this §7.25 adopted to be effective November 22, 1985, 10 TexReg 4365; amended to be effective September 30, 1993, 18 TexReg 6325.