Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 11 - HEALTH MAINTENANCE ORGANIZATIONS
Subchapter I - FINANCIAL REQUIREMENTS
Section 11.803 - Statutory Deposit Requirements
Current through Reg. 50, No. 13; March 28, 2025
(a) Statutory deposits made under Insurance Code § 843.405 (concerning Deposit with Comptroller) consisting of certificates of deposit must be issued by a solvent, federally insured bank.
(b) Before issuance of the certificate of authority, the HMO must submit proof of statutory deposits satisfying the requirements of Insurance Code § 843.405 and meeting the investment requirements of § 11.802 of this title (relating to Minimum Net Worth), with a completed Statutory Deposit Transaction Form, Form No. FIN407 (rev. 11/15), and Declaration of Trust Form, Form No. FIN453 (rev. 11/15) as adopted in § 13.562(b) of this title (relating to Deposit or Letter of Credit Required), as well as a safekeeping receipt showing that the security is pledged to the department, and the applicable fees under § 7.1301(d) of this title (relating to Regulatory Fees) to the bond and securities officer of the department.
(c) Each HMO must annually determine the amount of statutory deposit required as specified in Insurance Code § 843.405 and adjust the amount of statutory deposit by March 15 of that year.
(d) Any increases, decreases, or substitutions to the deposit funds must be in funds meeting the investment requirements of § 11.802 of this title and must be accompanied by the documentation described in subsection (b) of this section.
(e) If the HMO wishes to request a waiver or release, or a waiver and a release, of all or part of the statutory deposit requirements under Insurance Code § 843.405, then the request must provide adequate information, including the following, to justify the relief requested:
(f) When the conditions on which a waiver was granted change to the extent that the HMO is no longer able to qualify for the waiver, the HMO must deposit adequate funds to comply with the requirements of Insurance Code § 843.405 within 30 days.
(g) All interest income due on the statutory deposit funds may be paid directly to the HMO by the bank.