1. (a) Any authorized insurer must file with the commissioner of insurance a plan of orderly withdrawal before the insurer undertakes total or substantial withdrawal from a line of insurance.

   1. (1) The insurer undertakes total withdrawal from a line of insurance when it takes any action on its own initiative that will result in the insurer's ceasing to write a line of insurance, as defined in §7.1803 of this title (relating to What Constitutes a Line of Insurance). An insurer will not be held to have acted on its own initiative in effecting a total withdrawal from a line of insurance when it acts pursuant to a commissioner or board disciplinary or administrative directive or order, or when the insurer acts pursuant to a directive of a supervisor, conservator, or receiver. If any out-of-state directive or order is not provided to the commissioner within 30 days of the issuance of any such directive or order, the insurer will be held to have acted on its own initiative.
   2. (2) The insurer undertakes substantial withdrawal from a line of insurance when it takes any action on its own initiative that will result in reducing the insurer's total annual premium volume in Texas for the current calendar year for a line of insurance, as defined in §7.1803 of this title (relating to What Constitutes a Line of Insurance), by 75% or more of the total annual premium volume in Texas for the immediately preceding calendar year for such line of insurance. An insurer will not be held to have acted on its own initiative in effecting a substantial withdrawal from a line of insurance when it acts pursuant to a commissioner or board disciplinary or administrative directive or order, or when the insurer acts pursuant to a directive of a supervisor, conservator, or receiver. If any out-of-state directive or order is not provided to the commissioner within 30 days of the issuance of any such directive or order, the insurer will be held to have acted on its own initiative.

2. (b) Exceptions. An insurer is not required to file a plan of orderly withdrawal when:

   1. (1) the insurer is transferring business from the insurer to a company within the same insurance holding company system, as defined in the Insurance Holding Company System Regulatory Act, the Insurance Code, Article 21.49-1, §2, and admitted to do business in this state; or
   2. (2) the line of business is written by a stipulated premium company unless such line is written pursuant to the Insurance Code, Article 22.23(b) or Article 22.23A.

Source Note:The provisions of this §7.1804 adopted to be effective July 22, 1993, 18 TexReg 4504.