SECTION 7.1607. Facts and Circumstances Affecting Issuance of Certificate of Authority

(a) For purposes of this section only, a material change in fact or circumstance means any fact or circumstance that impacts the accuracy or completeness of the information filed in an applicant's or administrator's initial application for a certificate of authority under the Insurance Code Chapter 4151, including:

(1) a change in an applicant's or administrator's mailing address;

(2) a felony conviction of any executive officer or other comparable responsible person of an applicant or administrator or of any other person who directly or indirectly controls the applicant or administrator; and

(3) any administrative action, order, or judgment issued against an applicant or administrator.

(b) An administrator shall notify the department in writing of a material change in fact or circumstance not later than the 30th day from the date the administrator first becomes aware of the material change in fact or circumstance.

(c) Except as provided by §7.1606(b) of this subchapter (relating to Requirements Related to Ownership Interest and Change of Control), an applicant shall continually update the information filed in its initial application for a certificate of authority under the Insurance Code Chapter 4151, including notifying the department in writing of a material change in fact or circumstance, while the application is pending with the department.

(d) An applicant or administrator must meet the requirements of the Insurance Code Chapter 4151 and this subchapter as those requirements apply to any material change of fact or circumstance identified by an administrator pursuant to subsection (b) of this section and to any change in information identified by an applicant pursuant to subsection (c) of this section.

(e) An applicant or administrator is required to maintain the qualifications necessary to obtain a certificate of authority under the Insurance Code Chapter 4151 at all times.

Source Note: The provisions of this §7.1607 adopted to be effective June 25, 2009, 34 TexReg 4143