28 TAC §§7.10, 7.11, 7.12, 7.16, 7.17, 7.18, and 7.21
Subchapter F. Reinsurance
28 TAC §7.615
Subchapter K. Purchasing and Selling of Exchange-Traded Call and Put Options Contracts
28 TAC §§7.1101-7.1107
1. INTRODUCTION. The Texas Department of Insurance proposes the repeal of §§7.10, 7.11, 7.12, 7.16, 7.17, 7.18, 7.21, 7.615, and 7.1101-7.1107 concerning certain accounting treatments. The repeal is necessary to permit the department to adopt certain accounting standards, treatments and practices in proposed new §7.18 that is published elsewhere in this issue of the Texas Register. The new §7.18 will replace, to the extent applicable, all of the repealed sections. The repeal of these sections is necessary to provide consistency in the regulations applicable to the accounting standards, treatments and practices of insurers doing business in Texas. The department will consider the proposed repeal of §§7.10, 7.11, 7.12, 7.16, 7.17, 7.18, 7.21, 7.615, and 7.1101-7.1107 in a public hearing under Docket No. 2468, scheduled for 10:00 a.m. on November 7, 2000, in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe Street in Austin, Texas.
2. FISCAL NOTE. Betty Patterson, CPA, AFE, Senior Associate Commissioner, Financial Program has determined that, for the first five-year period the repeal of the sections will be in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal, and there will be no effect on local employment or local economy.
3. PUBLIC BENEFIT/COST NOTE. Ms. Patterson also has determined that, for each year of the first five years the repeal of the sections will be in effect, the public benefit anticipated as a result of the repeal of the sections will be more efficient and standardized accounting by insurers and health maintenance organizations licensed to do business in Texas. There is no economic cost to persons who are required to comply with the repeal as proposed. The department finds it is neither legal nor feasible to reduce the effect of the proposed section for micro or small businesses. The solvency of an insurer must be measured fairly and objectively, regardless of the size of the insurer.
4. REQUEST FOR PUBLIC COMMENT. To be considered, all comments must be in writing and received no later than 5:00 p.m. on November 13, 2000 by Lynda H. Nesenholtz, General Counsel and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comments should be submitted to Betty Patterson, CPA, AFE, Senior Associate Commissioner, Financial Program, Mail Code 305-2A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104.
5. STATUTORY AUTHORITY. The repeal of the sections is proposed under the Insurance Code, Articles 1.11, 1.32, 3.10, 3.28, 5.75-1, 20A.10, 20A.22, 21.39-B, and 21.49-1 and §36.001. These articles authorize the Commissioner of Insurance to adopt rules to establish or set standards for the evaluation of the financial condition of insurers and health maintenance organizations, including reinsurance transactions, reserves and insurance holding company system transactions. Section 36.001 authorizes the Commissioner of Insurance to adopt rules for the conduct and execution of the duties and functions of the department as authorized by statute.
6. CROSS-REFERENCE TO STATUTE. Insurance Code, Articles 1.11, 1.32, 3.10, 3.28, 5.75-1, 20A.10, 20A.22, 21.39-B, and 21.49-1 and §32.041 are affected by the repeal of the sections.
§7.10. Admitted Assets-Insurance Code, Article 3.01, §10(b).
§7.11. National Association of Insurance Commissioners Examiners Handbook.
§7.12. Calculation of the Liability for Unrealized Profit on the Sale of Real Estate.
§7.16. National Association of Insurance Commissioners Purposes and Procedures of the Securities Valuation Office Manual.
§7.17. Premium Notes and Other Memoranda or Evidences of Premiums Payable as Admissible Assets of Fire and Casualty Insurance Companies.
§7.18. National Association of Insurance Commissioners Accounting Practices and Procedures Manuals.
§7.21. Admitted Assets, the Texas Insurance Code, Article 6.12, §5, and Article 8.07, §2.
Subchapter F. Reinsurance
§7.615. Regulation of Accounting for Reinsurance Agreements by Property and Casualty Insurers.
Subchapter K. Purchasing and Selling of Exchange-Traded Call and Put Options Contracts.
§7.1103. Purchase of Exchange-Traded Put and Call Options.
§7.1104. Sale of Exchange-Traded Call Options.
§7.1105. Accounting for Hedges of Items Carried at Market Value or Amortized Cost.
§7.1106. Administration and Recordkeeping.
§7.1107. Severability Provision.