SECTION 12.110. Effect of Sale or Transfer of Ownership of an Independent Review Organization

(a) An IRO must notify the department of an agreement to sell or transfer the ownership of the IRO, or shares in the IRO, no later than 60 days before the date of the sale or transfer of ownership. The IRO must use the IRO application form. The IRO must file the notification with the department at the following address: Texas Department of Insurance, Mail Code 103-6A, P.O. Box 149104, Austin, Texas 78714-9104. The IRO must submit the following information with the notification:

(1) name of the purchaser and, in compliance with §1.503 and §1.504 of this title, a complete and legible set of fingerprints for each officer of the purchaser and for each owner or shareholder of the purchaser, or if the purchaser is publicly held, each owner or shareholder of more than 5 percent of any of the purchaser's stock or options as described by Insurance Code §4202.004(a)(1), and any additional information necessary to comply with Insurance Code §4202.004(d); and

(2) any material changes including, but not limited to, policies and procedures, physical address, personnel, or operating locations with the notice of intent to sell or transfer ownership.

(b) The IRO may complete the sale or transfer of ownership only after the department has sent written confirmation that the requirements under Insurance Code Chapter 4202 and this chapter have been satisfied.

(c) An IRO must continue to perform all duties before the date the sale or transfer of ownership of the IRO is finalized. Notification of the impending sale of an IRO does not negate the IRO's obligation to continue to perform its duties in compliance with Insurance Code Chapters 1305 and 4202, Labor Code Title 5, and applicable department and TDI-DWC rules.

Source Note: The provisions of this §12.110 adopted to be effective December 26, 2010, 35 TexReg 11281; amended to be effective July 7, 2015, 40 TexReg 2538