SECTION 6.404. Captive Insurance Companies Using Other Than Calendar Year Fiscal Years

(a) A captive insurance company may submit a written request to the commissioner for permission to use a fiscal year end other than a calendar year end. The commissioner may grant the request in writing at the commissioner's sole discretion. A captive insurance company may not use a fiscal year other than a calendar year without the commissioner's written authorization.

(b) As required under Insurance Code §964.060(c)(3), to support the premium tax return due March 1 of each year, a captive insurance company that is granted a fiscal year end date other than December 31, must submit the asset page and the liability, capital, and surplus page; income statement; and statement of cash flow, as verified by two executive officers, on or before March 1 of each year for the prior calendar year, and in the annual report format established in the Texas Captive Annual Report adopted under §6.401 of this title (relating to Annual Report). The executive officers verifying the report must have submitted biographical affidavits under §6.303 of this title (relating to Captive Insurance Company Biographical Information).

(c) Under Insurance Code §964.060(c), a captive insurance company granted a fiscal year end date other than December 31 must:

(1) not later than the 60th day after the captive insurance company's fiscal year end, submit to the department the captive insurance company's annual report for the prior fiscal year using the Texas Captive Annual Report form and instructions under §6.401 of this title; and

(2) not later than the 150th day after the date the annual report is due, submit to the department the captive insurance company's audited financial statements as required under §6.403 of this title (relating to Audited Financial Statements).

Source Note: The provisions of this §6.404 adopted to be effective April 27, 2014, 39 TexReg 3232