SECTION 6.105. Agreements to Provide Administrative Services

(a) An agreement with a captive management company described in §6.104 of this title (relating to Administrative Services Contracts) must be in writing and include the following:

(1) a requirement that all parties to the agreement must comply with the applicable requirements of the Insurance Code and department rules, including holding the appropriate licenses or certificates of authority;

(2) a requirement that the captive management company must permit the commissioner or the captive insurance company to examine at any time:

(A) the financial solvency of the captive management company; and

(B) the captive management company's ability to perform its responsibilities under the written agreement;

(3) a description of the duties or services that the captive management company is to provide;

(4) a provision relating to continuation of services following termination and the transfer of the books and records of a captive insurance company from one captive management company to another captive management company;

(5) a requirement that the books and records of the captive insurance company:

(A) remain the property of the captive insurance company at all times;

(B) are available to the captive insurance company or its designee at any time while in the custody of a captive management company; and

(C) will be timely transferred to the captive insurance company or its designee:

(i) on request of the captive insurance company;

(ii) at the termination or cancellation of a written agreement entered into by a captive management company; and

(iii) in compliance with all applicable statutory and rule requirements;

(6) a requirement that the books and records must be maintained as required in §6.306 of this title (relating to Books and Records); and

(7) a provision that the captive management company has no automatic right to terminate the agreement if all terms of the agreement are being met and the captive insurance company is placed in receivership under Insurance Code Chapter 443.

(b) Under this chapter, a written agreement includes an agreement that is prepared, signed, or stored electronically.

Source Note: The provisions of this §6.105 adopted to be effective April 27, 2014, 39 TexReg 3232