The Commissioner of Insurance adopts new §7.70 concerning annual statement blanks, other reporting forms, diskettes or electronic filings with the National Association of Insurance Commissioners (NAIC) via the Internet. Section 7.70 is adopted with changes to the proposed text as published in the January 5, 2001, issue of the Texas Register (26 TexReg 59).
The section provides instructions to be used by insurers and certain other entities regulated by the Texas Department of Insurance when reporting their financial condition and business operations and activities during 2000 and the requirement to file such completed statement blanks and other reporting forms, including diskettes or electronic filings with the NAIC via the internet. These annual statement blanks, other reporting forms, and diskettes or electronic filings with the NAIC via the Internet are required by statute for reporting, in 2001, the financial condition and business operations and activities conducted during the 2000 calendar year. The information provided is necessary for the department to monitor the solvency, business activities and statutory compliance of the insurers and other entities regulated by the department. Most of the forms adopted by the section have been promulgated by the NAIC and are used by other state insurance regulators. The use of these forms promotes uniformity and efficiency in the regulation of insurance companies and other entities regulated by the department. In addition to these standard forms, there are other forms adopted by the section that are used only by the department. These forms are reviewed each year to assure that the information required to complete the form is necessary for the department to perform its duties.
The new section defines terms relevant to the statement blanks and reporting forms; provides the dates by which certain reports are to be filed; adopts by reference the annual blanks, other reporting forms, and instructions for reporting the financial condition and business operations and activities; and requires insurance companies and certain other regulated entities to file such annual statements and other reporting forms with the department and/or the NAIC as directed. The required documents will provide financial information to the public and regulatory agencies, and will be used by the department to monitor the financial condition of insurers and other regulated entities licensed in Texas to assure financial solvency and compliance with applicable laws and accounting requirements. The adopted section was changed to provide consistency and to correct a typographical error in §7.70(l)(1). Page 130 was changed to page 132.
No comments were received.
The new section is adopted under the Insurance Code Articles 1.11, 3.07, 3.20-1, 3.27-2, 3.77, 6.11, 6.12, 8.07, 8.08, 8.21, 8.24, 9.22, 9.47, 10.30, 11.06, 11.19, 14.15, 14.39, 15.15, 15.16, 16.18, 16.24, 17.22, 17.25, 18.12, 19.08, 20.02, 20A.10, 20A.22, 21.39, 21.43, 21.49, 21.52F, 21.54, 22.06, 23.02 and 23.26, and §§32.041 and 36.001. Article 1.11 authorizes the commissioner to make changes in the forms of the annual statements required of insurance companies of any kind, as shall seem best adapted to elicit a true exhibit of their condition and methods of transacting business, and requires certain insurers to make filings with the National Association of Insurance Commissioners. Articles 3.07, 3.20-1, 3.27-2, 3.77, 6.11, 6.12, 8.07, 8.08, 8.21, 8.24, 9.22, 9.47, 10.30, 11.06, 11.19, 14.15, 14.39, 15.15, 15.16, 16.18, 16.24, 17.22, 17.25, 18.12, 19.08, 20.02, 20A.10, 20A.22, 21.49, 21.54, 22.06, 23.02, and 23.26 require the filing of financial reports and other information by insurers and other regulated entities, and specify particular rule-making authority of the commissioner relating to those insurers and other regulated entities. Article 21.39 requires insurers to establish adequate reserves and provides for the adoption of each current formula for establishing reserves applicable to each line of insurance. Article 21.43 provides the conditions under which foreign insurers are permitted to do business in this state and requires foreign insurers to comply with the provisions of the Insurance Code. Article 21.52F authorizes the commissioner to adopt rules to implement the regulation of nonprofit health corporations holding a certificate of authority under that article. Section 32.041 requires the department to furnish the statement blanks and other reporting forms necessary for companies to comply with the filing requirements. Section 36.001 provides that the commissioner may adopt rules for the conduct and execution of the duties and functions of the department as authorized by statute.
§7.70. Requirements for Filing the 2000 Annual Statements, Other Reporting Forms, and Diskettes or Electronic Filings with the NAIC via the Internet.
(a) Scope. This section provides insurers and other regulated entities with the requirements for the 2000 annual statement, other reporting forms, and diskettes or electronic filings with the National Association of Insurance Commissioners (NAIC) via the Internet necessary to report information concerning the financial condition and business operations and activities of insurers. This section applies to all insurers and other regulated entities authorized to do the business of insurance in this state and includes, but is not limited to, life insurers; accident insurers; life and accident insurers; life and health insurers; accident and health insurers; life, accident and health insurers; mutual life insurers; stipulated premium insurers; group hospital service corporations; fire insurers; fire and marine insurers; general casualty insurers; fire and casualty insurers; mutual insurers other than life; county mutual insurers; Lloyd's plans; reciprocal and inter-insurance exchanges; domestic risk retention groups; domestic joint underwriting associations; Mexican non-life insurers licensed under any article of the Insurance Code other than, or in addition to, Insurance Code Article 8.24, title insurers; fraternal benefit societies; local mutual aid associations; statewide mutual assessment companies; mutual burial associations; exempt associations; farm mutual insurers; health maintenance organizations; nonprofit health corporations; nonprofit legal services corporations; the Texas Health Insurance Risk Pool; the Texas Workers' Compensation Insurance Fund; and the Texas Windstorm Insurance Association. The commissioner adopts by reference the 2000 annual statement blanks, instruction manuals, and other reporting forms specified in this section. The annual statement blanks and other reporting forms are available from the department, Financial Analysis and Examinations, Mail Code 303-1A, P. O. Box 149099, Austin, Texas 78714-9099. Insurers and other regulated entities shall properly report to the Texas Department of Insurance (department) and the NAIC by completing the appropriate annual statement blanks, prepared with laser quality print (hand written copies must be prepared legibly using black ink), other reporting forms, and diskettes or electronic filings with NAIC via the Internet following the applicable instructions as outlined in subsections (d) - (m) of this section.
(b) Definitions. The following words and terms, when used in this section, shall have the following meanings:
(1) Association edition - Blanks and forms promulgated by the NAIC.
(2) Commissioner - The commissioner of insurance appointed under the Insurance Code.
(3) Insurer - A person or business entity legally organized in and authorized by its domiciliary jurisdiction to do the business of insurance, including health maintenance organizations.
(4) Texas edition - Blanks and forms promulgated by the commissioner.
(c) Conflicts with Other Laws. In the event of a conflict between the Insurance Code, any currently existing departmental rule, form, instructions, or any specific requirement of this section and the NAIC manuals or instructions listed in this section, then and in that event, the Insurance Code, the department's promulgated rule, form, instruction, or the specific requirement of subsections (d) - (m) of this section shall take precedence and in all respects control.
(d) Filing requirements for life, accident and health insurers. Each life, life and accident, accident, life and health, accident and health, mutual life, or life, accident and health insurance company, stipulated premium insurance company, group hospital services corporation and the Texas Health Insurance Risk Pool shall complete and file the blanks, forms, diskettes or electronic filings with the NAIC via the Internet for the 2000 calendar year as specified in this subsection. The forms and reports identified in paragraphs (1)(A)-(D); (2)(A), (B) and (H); and (3)(A)-(K) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Statement Instructions, Life, Accident and Health, and the NAIC Accounting Practices and Procedures Manual for Life, Accident and Health Companies (January, 1999) except as provided by subsection (b) of this section. The diskettes or electronic filings with the NAIC via the Internet identified in paragraph (3)(L) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Statement Diskette Filing Specifications-Life, Accident and Health, except as provided by paragraph (4) of this subsection.
(1) Reports to be filed both with the department and the NAIC include the following:
(A) Annual Statement (association edition), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001 (stipulated premium insurance companies, April 1, 2001);
(B) Annual Statement of the Separate Accounts (association edition) (required of companies maintaining separate accounts), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001 (stipulated premium insurance companies, April 1, 2001);
(C) Management's Discussion and Analysis (a narrative document setting forth information which enables regulators to enhance their understanding of the insurer's financial position, results of operations, changes in capital and surplus accounts and cash flow), to be filed on or before April 1, 2001;
(D) Actuarial Opinion (the statement of a qualified actuary, setting forth his or her opinion relating to policy reserves and other actuarial items; required of all companies), to be attached to the annual statement required by paragraph (1)(A) of this subsection.
(2) Reports to be filed only with the department:
(A) Schedule SIS, Stockholder Information Supplement (association edition) (required of domestic stock companies which have 100 or more stockholders), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(B) Supplemental Compensation Exhibit (association edition), the 8 ½ inch by 14 inch size (required of Texas domestic companies only), to be filed on or before March 1, 2001 (stipulated premium companies, April 1, 2001);
(C) Annual Statement (Texas edition) (required of non-profit prepaid legal companies writing prepaid legal business in 2000 and subject to Chapter 23 of the Insurance Code), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(D) Affidavit in Lieu of Annual Statement (Texas edition) (required of non-profit prepaid legal companies authorized to write prepaid legal business that did not write such business in 2000 and subject to Chapter 23 of the Insurance Code), to be filed on or before March 1, 2001;
(E) Texas Overhead Assessment Form (Texas edition) (required of Texas domestic companies only), to be filed on or before March 1, 2001 (stipulated premium insurance companies, April 1, 2001);
(F) Analysis of Surplus (Texas edition) for life, accident and health insurers, to be filed on or before March 1, 2001 (stipulated premium insurance companies, April 1, 2001); and
(G) Supplemental Investment Income Exhibit (Texas edition) (shows percent of net investment income by type of investment), as an attachment to page ten of the annual statement as required by paragraph (1)(A) of this subsection, to be filed on or before March 1, 2001 (stipulated premium companies, April 1, 2001).
(H) The Texas Health Insurance Risk Pool shall complete and file the following only:
(i) Annual Statement (association edition), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001. However, only pages 1 - 5, 12, and the Notes to Financial Statements (page 31) and Schedule E (page 75) are required to be completed and filed on or before March 1, 2001; and
(ii) The Texas Health Insurance Risk Pool is not required to file reports, diskettes, or electronic filings with the NAIC.
(3) Reports, diskettes, or electronic filings via the Internet filed only with the NAIC:
(A) Trusteed Surplus Statement (association edition), Life, Accident and Health Supplement (required of the U. S. branch of an alien insurer), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(B) Medicare Supplement Insurance Experience Exhibit (association edition) (for insurers writing Medicare supplement business), to be filed on or before March 1, 2001;
(C) Officers and Directors Information (association edition), to be filed on or before March 1, 2001 (stipulated premium insurance companies, April 1, 2001);
(D) Credit Insurance Experience Exhibit (association edition) (required of companies writing credit business), the 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001;
(E) Long-Term Care Insurance Exhibit (association edition) (required of companies writing long-term care business), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001 (stipulated premium insurance companies, April 1, 2001);
(F) Long-Term Care Experience Reporting Forms (association edition) (required of companies writing long-term care business), the 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001;
(G) Interest Sensitive Life Insurance Products Report (association edition) (required of companies writing interest sensitive products), the 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001;
(H) Life, Health and Annuity Guaranty Association Model Act Assessment Base Reconciliation Exhibit (association edition), the 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001;
(I) Adjustments to the Life, Health and Annuity Guaranty Association Model Act Assessment Base Reconciliation Exhibit (association edition), the 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001;
(J) Schedule DC (association edition) (for insurers engaged in insurance options and futures), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001 (stipulated premium insurance companies, April 1, 2001);
(K) Schedule DS (association edition) (required only of companies that have included "equity in the undistributed income of unconsolidated subsidiaries" in their "net gain from operations"), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001 (stipulated premium insurance companies, April 1, 2001); and
(L) Diskettes or electronic filings via the Internet containing computerized annual statement data, to be filed on or before March 1, 2001 (stipulated premium insurance companies, April 1, 2001).
(4) The following provisions shall apply to the filings required in paragraphs (1)-(3) of this subsection.
(A) Texas domestic life, accident and health companies with more than $30 million in direct premiums in 2000 must establish Asset Valuation Reserves (AVR) and Interest Maintenance Reserves (IMR) in their financial statements in accordance with the instructions in the 1999/2000 NAIC Annual Statement Instructions, Life, Accident and Health Companies. Texas domestic companies with $30 million or less in direct premiums and the Texas Health Insurance Risk Pool may establish AVR and IMR in their financial statements in accordance with the instructions in the 1999/2000 NAIC Annual Statement Instructions, Life, Accident and Health Companies or they must value bonds and preferred stocks in compliance with the provisions of §7.16 of this title (relating to NAIC Purposes and Procedures of the Securities Valuation Office Manual), concerning companies not maintaining an AVR or IMR.
(B) Actuarial opinions required by paragraph (1)(D) of this subsection shall be in accordance with the following:
(i) Unless exempted, the statement of actuarial opinion should follow the applicable provisions of §§3.1601-3.1611 of this title (relating to Actuarial Opinion and Memorandum Regulation).
(ii) For those companies exempted from §§3.1601-3.1611 of this title, instructions 1-12, established by the NAIC, must be followed.
(iii) Any stipulated premium company subject to §§3.1601-3.1611 of this title which does not insure or assume risk on contracts with death benefits, cash value, or accumulation values on any one life in excess of $10,000, except as permitted by Insurance Code Article 22.13, §1(b), is exempt from submission of a statement of actuarial opinion in accordance with §3.1608 of this title (relating to Statement of Actuarial Opinion Based on an Asset Adequacy Analysis), but must submit an actuarial opinion pursuant to §3.1607 of this title (relating to Statement of Actuarial Opinion Not Including an Asset Adequacy Analysis).
(C) Reporting for "administrative services only" (ASO) plans. Some insurers may act only as administrators of accident and health plans where the plan bears all of the risk of claims. Such plans are commonly referred to as "administrative services only" plans and are also referred to as "uninsured plans." The amounts received for ASO plans shall not be recorded in premiums. Claims paid by the insurer under uninsured accident and health plans should not be reported in the Summary of Operations. Commissions, expenses, and taxes incurred by an insurer for uninsured accident and health plans are to be reported on a gross basis by type of expense. The administration fees and expense reimbursements relating to uninsured business are deducted in the general expense exhibit and general insurance expenses are to be reported in the Summary of Operations net of such fees and reimbursement. Texas domestic insurers subject to this subsection that have reported amounts received for ASO plans as premiums under different reporting standards for at least five years prior to the effective date of this section may continue reporting amounts received for ASO plans as premiums. Under such circumstances, the insurer shall provide a general description of the source and amounts received for ASO plans as an attachment to the Summary of Operations and the Schedule T of the annual statement.
(e) Requirements for property and casualty insurers. Each fire, fire and marine, general casualty, fire and casualty, or U.S. Branch, county mutual insurance company, mutual insurance company other than life, Lloyd's plan, reciprocal or inter-insurance exchange, domestic risk retention group, life insurance company that is licensed to write workers' compensation, any farm mutual insurance company that filed a property and casualty annual statement under paragraph (1)(A) of this subsection for the 1999 calendar year or had gross written premiums in 2000 in excess of $5,000,000, any Mexican non-life insurer licensed under any article of the Insurance Code other than, or in addition to, Insurance Code Article 8.24, domestic joint underwriting association, the Texas Workers' Compensation Insurance Fund and the Texas Windstorm Insurance Association shall complete and file the following blanks, forms, and diskettes or electronic filings with the NAIC via the Internet for the 2000 calendar year. The forms and reports identified in paragraphs (1)(A)-(F); (2)(A), (B) and (J); and (3)(A)-(G) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Statement Instructions, Property and Casualty and the NAIC Accounting Practices and Procedures Manual for Property and Casualty Companies (March 1998), except as provided by paragraph (4) of this subsection. The diskettes or electronic filings with the NAIC via the Internet identified in paragraph (3)(H) and (I) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Statement Diskette Filing Specifications - Property and Casualty.
(1) Reports to be filed both with the department and the NAIC:
(A) Annual Statement (association edition), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(B) Management's Discussion and Analysis (a narrative document setting forth information which enables regulators to enhance their understanding of the insurer's financial position, results of operations, changes in capital and surplus accounts and cash flow), to be filed on or before April 1, 2001;
(C) Financial Guaranty Insurance Exhibit (association edition) (required of companies writing financial guaranty business), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(D) Supplement "A" to Schedule T, Exhibit of Medical Malpractice Premiums Written (association edition) (required of companies writing medical malpractice business), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(E) Actuarial Opinion (the statement of a qualified actuary, setting forth his or her opinion relating to policy reserves and other actuarial items; required of all companies), to be attached to the annual statement required by subparagraph (A) of this paragraph; and
(F) Combined Property/Casualty Annual Statement (association edition), the 8 ½ inch by 14 inch size, to be filed on or before May 1, 2001, including the Insurance Expense Exhibit. This form is required only for those affiliated insurers that wrote more than $35 million in direct premiums as a group in 2000, as defined in Schedule T of the Annual Statement.
(2) Reports to be filed only with the department:
(A) Schedule SIS, Stockholder Information Supplement (association edition) (required of domestic stock companies which have 100 or more stockholders), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(B) Supplemental Compensation Exhibit (association edition), the 8 ½ inch by 14 inch size (required of Texas domestic companies only), to be filed on or before March 1, 2001;
(C) Supplemental Investment Income Exhibit (Texas edition) (shows percent of net investment income by type of investment), as an attachment to page six of the annual statement required by paragraph (1)(A) of this subsection, to be filed on or before March 1, 2001;
(D) Annual Statement (Texas edition) (required of non-profit prepaid legal companies writing prepaid legal business in 2000 and subject to Chapter 23 of the Insurance Code), the 8½ inch by 14 inch size, to be filed on or before March 1, 2001;
(E) Affidavit in Lieu of Annual Statement (Texas edition) (required of non-profit prepaid legal companies authorized to write prepaid legal business and subject to Chapter 23 of the Insurance Code) that did not write such business in 2000), to be filed on or before March 1, 2001;
(F) Texas Overhead Assessment Form (Texas edition) (required of Texas domestic companies only), to be filed on or before March 1, 2001;
(G) Analysis of Surplus (Texas edition) for property and casualty insurers (required of all licensed companies, except Texas domestic county mutual companies), to be filed on or before March 1, 2001;
(H) Supplement for County Mutuals (Texas edition) (required of Texas domestic county mutual companies, as an attachment to page sixteen of the annual statement as required by paragraph (1)(A) of this subsection), to be filed on or before March 1, 2001; and
(I) Texas Supplemental A for County Mutuals (Texas edition) (required of Texas domestic county mutual companies, as an attachment to page nine of the annual statement as required by paragraph (1)(A) of this subsection), to be filed on or before March 1, 2001.
(J) The Texas Windstorm Insurance Association (Insurance Code Article §21.49) shall complete and file only the following:
(i) Annual Statement (association edition), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001, except as provided by paragraph (4) of this subsection;
(ii) Management's Discussion and Analysis (a narrative document setting forth information which enables regulators to enhance their understanding of the insurer's financial position, results of operations, changes in capital and surplus accounts and cash flow), to be filed on or before April 1, 2001.
(3) Reports, diskettes, or electronic filings via the Internet filed only with the NAIC:
(A) Trusteed Surplus Statement (association edition, Property and Casualty Supplement) (required of the U. S. branch of an alien insurer), 8 ½ inch by 14 inch size to be filed on or before March 1, 2001;
(B) Medicare Supplement Insurance Experience Exhibit (association edition) (for insurers writing Medicare supplement business), to be filed on or before March 1, 2001;
(C) Officers and Directors Information (association edition), to be filed on or before March 1, 2001;
(D) Insurance Expense Exhibit (association edition), the 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001;
(E) Credit Insurance Experience Exhibit (association edition) (required of companies writing credit accident and/or health business), 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001;
(F) Long-Term Care Experience Reporting Forms (association edition) (required of companies writing long-term care business), the 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001;
(G) Schedule DC (association edition) (for insurers engaged in insurance options and futures), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(H) Diskettes or electronic filings via the Internet containing computerized annual statement data, to be filed on or before March 1, 2001;
(I) Diskettes or electronic filings via the Internet containing combined annual statement data, to be filed on or before May 1, 2001.
(4) The following provisions shall apply to all filings required by paragraphs (1) - (3) of this subsection.
(A) No loss reserve discounts, other than as respects fixed and determinable payments such as those emanating from workers' compensation tabular indemnity reserves and long-term disability claims for which specific segregated investments have been established, shall be allowed. The commissioner shall have the authority to determine the appropriateness of, and may disallow, such discounts.
(B) The commissioner shall have the authority to determine the appropriateness of, and may disallow, anticipated salvage and subrogation.
(C) Texas domestic insurers that write only in Texas may apply for an alternative basis of calculating the excess of statutory reserves over statement reserves, also known as the Schedule P penalty reserve, by submitting a request to the Chief Property and Casualty Actuary of the Financial Program which outlines the reasons and basis for such request. The request should be mailed to the Chief Property and Casualty Actuary, Texas Department of Insurance, Financial Program, MC 302-3A P.O. Box 149104, Austin, Texas 78714-9104. Requests must be submitted to the department on or before January 31, 2001.
(f) Requirements for fraternal benefit societies. Each fraternal benefit society shall complete and file the following blanks, forms, and diskettes or electronic filings for the 2000 calendar year. The forms, reports, and diskettes identified in paragraphs (1)(A)-(D); (2)(A) and (D); and (3)(A)-(F), and (H) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Statement Instructions, Fraternal, except as provided by paragraph (4) of this subsection. The diskettes or electronic filings identified in paragraph (3)(G) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Statement Diskette Filing Specifications-Fraternal, except as provided by paragraph (4) of this subsection.
(1) Reports to be filed both with the department and the NAIC:
(A) Annual Statement (association edition), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(B) Annual Statement of the Separate Accounts (association edition) (required of companies maintaining separate accounts), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(C) Management's Discussion and Analysis (a narrative document setting forth information which enables regulators to enhance their understanding of the insurer's financial position, results of operations, changes in capital and surplus accounts and cash flow), to be filed on or before April 1, 2001; and
(D) Actuarial Opinion (the statement of a qualified actuary, setting forth his or her opinion relating to policy reserves and other actuarial items; to be filed by all companies), to be attached to the annual statement required by subparagraph (A) of this paragraph.
(2) Reports to be filed only with the department:
(A) Supplemental Compensation Exhibit (association edition), the 8 ½ inch by 14 inch size, (required of Texas domestic companies only), to be filed on or before March 1, 2001;
(B) Texas Overhead Assessment Form (Texas edition) (required of Texas domestic companies only), to be filed on or before March 1, 2001;
(C) Analysis of Surplus (Texas edition) for fraternal benefit societies, to be filed on or before March 1, 2001;
(D) Fraternal Benefit Societies Supplement to Valuation Report (Association edition) to be filed on or before June 30, 2001; and
(E) Supplemental Investment Income Exhibit (Texas edition) (shows percent of net investment income by type of investment, as an attachment to page ten of the annual statement as required by paragraph (1)(A) of this subsection), to be filed on or before March 1, 2001.
(3) Reports and diskettes or electronic filings via the Internet to be filed only with the NAIC:
(A) Trusteed Surplus Statement (association edition, Fraternal Supplement) (required of the U. S. branch of an alien insurer), 8 ½ inch by 14 inch size to be filed on or before March 1, 2001;
(B) Medicare Supplement Insurance Exhibit (association edition) (for insurers writing Medicare supplement business) to be filed on or before March 1, 2001;
(C) Officers and Directors Information (association edition), to be filed on or before March 1, 2001;
(D) Long-Term Care Insurance Exhibit (association edition) (required of companies writing long-term care business), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(E) Schedule DS (association edition) (required only of companies that have included "equity in the undistributed income of the subsidiary" in "net gain from operations"), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(F) Long-Term Care Experience Reporting Forms (association edition) (required of companies writing long-term care business), the 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001;
(G) Diskettes or electronic filings via the Internet containing computerized annual statement data, to be filed on or before March 1, 2001; and
(H) Fraternal Interest Sensitive Life Insurance Products Report (association edition) (required of companies writing interest sensitive products), the 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001.
(4) Texas domestic fraternal companies with more than $30 million in direct premiums in 2000 must establish Asset Valuation Reserves and Interest Maintenance Reserves in their financial statements in accordance with the instructions in the 1999/2000 NAIC Annual Statement Instructions, Fraternal. Texas domestic fraternal companies with $30 million or less in direct premiums may establish Asset Valuation Reserves and Interest Maintenance Reserves in their financial statements in accordance with the instructions in the 1999/2000 NAIC Annual Statement Instructions, Fraternal or they must value bonds and preferred stocks in compliance with the provisions of §7.16 of this title (relating to NAIC Purposes and Procedures of the Securities Valuation Office Manual), concerning companies not maintaining an Asset Valuation Reserve or Interest Maintenance Reserve. Since fraternals are not subject to Article 3.28 Section 2A, Texas Insurance Code, the statement of actuarial opinion for fraternals should follow instructions 1 - 12, established by the NAIC.
(g) Requirements for title insurers. Each title insurance company shall complete and file the following blanks and forms for the 2000 calendar year. The reports and forms identified in paragraphs (1)(A)-(C); (2)(A) and (E); and (3)(A) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Statement Instructions, Title, except as otherwise provided by subsection (b) of this section. The diskette or electronic filings via the Internet identified in paragraph (3)(B) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Statement Diskette Filing Specifications, Title.
(1) Reports to be filed with the department and the NAIC:
(A) Annual Statement (association edition), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(B) Management's Discussion and Analysis (a narrative document setting forth information which enables regulators to enhance their understanding of the insurer's financial position, results of operations, changes in capital and surplus accounts and cash flow), to be filed on or before April 1, 2001; and
(C) Actuarial Opinion (the statement of a qualified actuary, setting forth his or her opinion relating to policy reserves and other actuarial items; required of all companies), to be attached to the annual statement required by subparagraph (A) of this paragraph.
(2) Reports to be filed only with the department:
(A) Supplemental Compensation Exhibit (association edition), the 8 ½ inch by 14 inch size, (required of Texas domestic companies only), to be filed on or before March 1, 2001;
(B) Texas Overhead Assessment Form (Texas edition) (required of Texas domestic companies only), to be filed on or before March 1, 2001;
(C) Analysis of Surplus (Texas edition) for title insurers to be filed on or before March 1, 2001;
(D) Supplemental Investment Income Exhibit (Texas edition) (shows percent of net investment income by type of investment, as an attachment to page six of the annual statement as required in paragraph (1)(A) of this subsection), to be filed on or before March 1, 2001; and
(E) Schedule SIS, Stockholder Information Supplement (association edition) (required of domestic stock companies which have 100 or more stockholders), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001.
(3) Reports to be filed only with the NAIC.
(A) Officers and Directors Information (association edition), to be filed on or before March 1, 2001;
(B) Diskettes or electronic filings via the Internet containing computerized annual statement data, to be filed on or before March 1, 2001.
(h) Requirements for health maintenance organizations and non-profit health corporations. Each health maintenance organization and non-profit health corporation shall complete and file the following blanks and forms, and diskettes for the 2000 calendar year. The forms, reports, and diskettes identified in paragraphs (1)(A)-(D) and (2)(A) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Statement Instructions, Health Maintenance Organizations and the NAIC Accounting and Practices Procedures Manual for Health Maintenance Organizations (June, 1991). The actuarial opinion required to be completed in accordance with the 1999/2000 NAIC Annual Statement Instructions, Health Maintenance Organizations shall include the additional requirements of the department in paragraph (1)(C) of this subsection. The forms, reports, and diskettes identified in paragraphs (1)(A), (2)(B) and (D) of this subsection shall be completed in accordance with instructions provided by the department. The diskettes or electronic filings identified in paragraph (3) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Diskette Filing Specifications, Health Maintenance Organizations.
(1) Reports to be filed both with the department and the NAIC:
(A) Annual Statement (association edition), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(B) Management´s Discussion and Analysis, (a narrative document setting forth information which enables regulators to enhance their understanding of the insurer´s financial position, results of operations, changes in capital and surplus accounts and cash flow), to be filed on or before April 1, 2001;
(C) Actuarial Opinion (the statement of a qualified actuary, setting forth his or her opinion relating to policy reserves and other actuarial items; to be filed by all health maintenance organizations), to be attached to the annual statement required by subparagraph (A) of this paragraph. In addition to the requirements set forth in the 1999/2000 NAIC Annual Statement Instructions, Health Maintenance Organizations, the department requires that the actuarial opinion include the following:
(i) The statement of actuarial opinion must include assurance that an actuarial report and underlying actuarial workpapers supporting the actuarial opinion will be maintained at the company and available for examination for seven years. The foregoing must be available by May 1 of the year following the year end for which the opinion was rendered or within two weeks after a request from the commissioner. The suggested wording used will depend on whether the actuary is employed by the company or is a consulting actuary. The wording for an actuary employed by the company should be similar to the following: "An actuarial report and any underlying actuarial workpapers supporting the findings expressed in this Statement of Actuarial Opinion will be retained for a period of seven years in the administrative offices of the company and available for regulatory examination." The wording for a consulting actuary retained by the company should be similar to the following: "An actuarial report and any underlying actuarial workpapers supporting the findings expressed in this Statement of Actuarial Opinion have been provided to the company to be retained for a period of seven years in the administrative offices of the company and available for regulatory examination."
(ii) Under the scope paragraph requirements of section 5 of the instructions relating to the Actuarial Certification in the 1999/2000 NAIC Annual Statement Instructions, Health Maintenance Organizations, the department requires that the actuarial opinion specifically list the premium deficiency reserve as an item and disclose the amount of such reserve; and
(D) Medicare Supplement Insurance Experience Exhibit (association edition) (for insurers writing Medicare supplement business) to be filed on or before March 1, 2001.
(2) Reports to be filed only with the department:
(A) Supplemental Compensation Exhibit (association edition), the 8 ½ inch by 14 inch size, (required of Texas domestic companies only), to be filed on or before March 1, 2001;
(B) HMO Supplement (Texas edition), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(C) Texas Overhead Assessment Form (Texas edition) (required of Texas domestic companies only), to be filed on or before March 1, 2001; and
(D) Department formatted diskettes containing annual statement data (diskettes provided by the department for entering of health maintenance organization or non-profit health corporation financial statement data), to be completed according to the instructions provided by the department and filed with the department on or before March 1, 2001.
(3) Reports and diskettes or electronic filings via the Internet to be filed only with the NAIC. The diskettes containing computerized annual statement data must be filed on or before March 1, 2001. If utilizing Internet filing, it is not necessary to submit a diskette to the NAIC.
(i) Requirements for farm mutual insurers not subject to the provisions of subsection (e) of this section relating to filing requirements for property and casualty insurers. Each farm mutual insurance company shall file the following completed blanks and forms for the 2000 calendar year with the department only:
(1) Annual statement (Texas edition), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001;
(2) Texas Overhead Assessment Form (Texas edition), to be filed on or before March 1, 2001;
(3) Actuarial Opinion (the statement of a qualified actuary, setting forth his or her opinion relating to policy reserves and other actuarial items), to be attached to the annual statement required by paragraph (1) of this subsection, unless otherwise exempted.
(j) Requirements for statewide mutual assessment companies, local mutual aid and mutual burial associations, and exempt companies. Each statewide mutual assessment company, local mutual aid association, local mutual burial association, and exempt company shall file the following completed blanks and forms for the 2000 calendar year with the department only:
(1) Annual Statement (Texas edition), the 8 ½ inch by 14 inch size, to be filed on or before April 1, 2001; provided, however, exempt companies are not required to complete lines 22, 23, 24, 25, and 26 on page 3, the special instructions at the bottom of page 3, and pages 4, 5, 6, and 7. All other pages are required;
(2) Texas Overhead Assessment Form (Texas edition), to be filed on or before April 1, 2001;
(3) Release of Contributions Form (Texas edition), to be filed on or before April 1, 2001;
(4) 3 ½ % Chamberlain Reserve Table (Reserve Valuation) (Texas edition), to be filed on or before April 1, 2001;
(5) Reserve Summary (1956 Chamberlain Table 3 ½ %) (Texas edition), to be filed on or before April 1, 2001;
(6) Inventory of Insurance in Force by Age of Issue or Reserving Year (Texas edition), to be filed on or before April 1, 2001; and
(7) Summary of Inventory of Insurance in Force by Age and Calculation of Net Premiums (Texas edition), to be filed on or before April 1, 2001.
(k) Requirements for non-profit legal service corporations. Each non-profit legal service corporation subject to Chapter 23 of the Insurance Code shall file the following completed blanks and forms for the 2000 calendar year with the department only:
(1) Annual Statement (Texas edition), the 8 ½ inch by 14 inch size, to be filed on or before March 1, 2001; and
(2) Texas Overhead Assessment Form, to be filed on or before March 1, 2001.
(l) Requirements for Mexican casualty companies. Each Mexican casualty company, doing business as authorized by a certificate of authority issued under the Insurance Code Article 8.24, shall complete and file the following blanks and forms for the 2000 calendar year with the department only. All submissions shall be printed or typed in English and all monetary values shall be clearly designated in United States dollars. The form identified in paragraph (1) of this subsection shall be completed in accordance with the 1999/2000 NAIC Annual Statement Instructions, Property and Casualty, except as provided by this section. An actuarial opinion is not required. It is the express intent of this subsection that it shall not repeal or otherwise modify or amend any department rule or the Insurance Code. The blanks or forms are as follows:
(1) Annual Statement (association edition), the 8 ½ inch by 14 inch size; provided, however, only pages 1 - 4, 15 - 19 and 132 are required to be completed and filed on or before March 1, 2001;
(2) A copy of the balance sheet and the statement of profit and loss from the Mexican financial statement (printed or typed in English), to be filed on or before March 1, 2001;
(3) A copy of the official documents issued by the COMISION NACIONAL DE SEGUROS Y FIANZAS approving the 2000 annual statement, to be filed on or before June 30, 2001; and
(4) A copy of the current license to operate in the Republic of Mexico, to be filed on or before March 1, 2001.
(m) Other financial reports. Nothing in this section prohibits the department from requiring any insurer or other regulated entity from filing other financial reports with the department.