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You are here: Home . rules . 2008 . 0422-059

SUBCHAPTER D. Risk Retention Groups and Purchasing Groups

28 TAC § 13.313

1. INTRODUCTION. The Commissioner of Insurance adopts amendments to §13.313, concerning the annual registration filing date for purchasing groups. The amendments are adopted without change to the proposal published in the February 22, 2008 issue of the Texas Register (33 TexReg 1485 ).

2. REASONED JUSTIFICATION. The adopted amendments to §13.313(c) are necessary to change the current annual registration filing dates for purchasing groups and to establish a single annual registration filing date requirement of on or before July 1 of each year. This change to a single annual registration filing date will standardize the filing requirements in Texas with those of other states. Purchasing group industry representatives requested that the Department consider adopting a single annual registration filing date for all purchasing groups because the majority of states have already done so. In addition, the current requirement, which allows multiple registration filing dates, results in an inefficient use of Department resources; requiring the same annual registration filing date for all purchasing groups will enable the Department to more efficiently utilize its resources.

The amendment to §13.313(c) also requires each purchasing group to file its current information on Form PG1R instead of Form PG1. This change is necessary because Form PG1R specifically requires only information directly relevant to the renewal of a purchasing group's registration, whereas Form PG1 requires all information relevant to the initial registration of a purchasing group. The adopted amendments also amend §13.313(a) and (b) to replace the reference to the State Board of Insurance with a reference to the Commissioner of Insurance. This change is necessary because the State Board of Insurance was abolished effective September 1, 1994, and the Commissioner of Insurance was granted the authority previously granted to the State Board of Insurance, pursuant to Acts 1993, 73rd Legislature, ch. 685, §1.23. The adopted amendments to §13.313(a) and (b) update statutory references in accordance with the nonsubstantive revised Insurance Code. The adopted amendments also delete §13.313(b)(6) which requires the use of Form PG2, a form no longer used because the collection of premium taxes from purchasing groups is a function of the Texas Comptroller of Public Accounts, and not the Department.

3. HOW THE SECTION WILL FUNCTION. Amended §13.313(c) changes the current annual registration filing dates for purchasing groups and establishes a single annual registration filing date requirement. Amended §13.313(c) requires purchasing groups to file current information on or before July 1 of each year on Form PG1R. Amended §13.313(a) and (b) replace the reference to the State Board of Insurance with the updated reference to the Commissioner of Insurance, replace obsolete statutory references with updated references in accordance with the nonsubstantive revised Insurance Code, and delete §13.313(b)(6) to no longer require the use of obsolete Form PG2.

4. SUMMARY OF COMMENTS AND AGENCY RESPONSE.The Department did not receive any comments on the proposed amended sections.

5. STATUTORY AUTHORITY. The amendments are adopted pursuant to the Insurance Code Chapter 2201 and §36.001. Section 2201.008 provides that the Commissioner may adopt rules necessary to carry out Chapter 2201, relating to the regulation of risk retention groups and purchasing groups. Section 36.001 provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

6. TEXT.

§13.313. Forms Required for Risk Retention Groups and Purchasing Groups.

(a) Requirement for use of specific forms. Risk retention group or purchasing group filings and registrations under the Insurance Code Chapter 2201, must be effected by using forms promulgated by the commissioner of insurance.

(b) Adoption by reference of forms. The commissioner of insurance adopts by reference standard forms as specified in paragraphs (1) - (6) of this subsection and subsection (c) of this section for use by risk retention groups and purchasing groups which are subject to the provisions of this subchapter and the Insurance Code, Chapter 2201. The forms are published by the Texas Department of Insurance, and copies of the forms are available from the Company Licensing and Registration Division, Texas Department of Insurance, Mail Code 305-2C, P.O. Box 149104, Austin, Texas 78714-9104. The following forms must be utilized, as applicable, under the provisions of this subchapter and the Insurance Code, Chapter 2201.

(1) Risk retention groups seeking to be chartered in this state pursuant to the Insurance Code Chapters 822, 861, and 883, must utilize Form RRG-A-120.

(2) Risk retention groups seeking to be chartered in this state pursuant to the Insurance Code, Chapter 942 must utilize Form RRG-A-121.

(3) Foreign or alien risk retention groups seeking to do business as a risk retention group in this state must utilize Form RRG-A-122.

(4) All risk retention groups and purchasing groups seeking to do business in this state must utilize Form RRG/PG PC1, for appointing the commissioner as agent for service of process.

(5) Purchasing groups filing a notice of intent and registering to do business in this state under the Insurance Code, §§2201.255 and 2201.256, must utilize Form PG1.

(6) Agents filing annual reports as required by the Insurance Code, §2201.007 must use Form PG3.

(c) Annual filing by purchasing groups. On or before July 1 each year, beginning in 2008, every purchasing group doing business in this state shall provide the commissioner of insurance with current information on Form PG1R; however, there shall be no filing fee for annual filings of Form PG1R after payment of the initial filing fee described in §13.312 of this title (relating to Regulatory Fees).



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