The Texas Department of Insurance adopts the repeal of §7.401 concerning the minimum risk-based capital and surplus requirements for life, accident and health insurers. The adoption of the repeal is made without changes to the text published in the October 13, 2000 issue of the Texas Register (28 TAC 10291).
The repeal is necessary to eliminate unnecessary provisions and to allow the Texas Department of Insurance simultaneously to adopt new §7.401, that replaces the repealed section with a new minimum risk-based capital formula. The new section will provide an improved and updated formula for risk-based capital.
The repeal of the existing section facilitates the adoption of the new section that adopts a new minimum risk-based capital requirement for life, accident and health insurance companies, thereby updating the financial review process and increasing the efficiency of that process. Notification of the adoption of the new section appears elsewhere in this issue of the Texas Register.
No comments received.
The repeal of the section is adopted under the Insurance Code Articles 3.02 and 22.13, and §36.001. Article 3.02 authorizes the commissioner to adopt rules designed to ensure the financial solvency of companies for the protection of policyholders. Article 22.13 authorizes the commissioner to adopt rules regarding the minimum capital and surplus for certain insurers. Section 36.001 authorizes the commissioner to adopt rules for the conduct and execution of the duties and sanctions of the department.
§7.401. Minimum Risk-Based Capital and Surplus Requirements for Life, Accident, and Health Insurers.