Texas Insurance Code
§ 401.017 — NOTICE OF ADVERSE FINANCIAL CONDITION OR MISSTATEMENT OF FINANCIAL CONDITION
IN § 401.017Title 4. REGULATION OF SOLVENCY · Part A. GENERAL PROVISIONS · Ch. 401. AUDITS AND EXAMINATIONS · Art. A. INDEPENDENT AUDIT OF FINANCIAL STATEMENTS
Statute text
View on source(a)An insurer or health maintenance organization required to file an audited financial report under this subchapter shall require the insurer's or health maintenance organization's accountant to immediately notify the board of directors of the insurer or health maintenance organization or the insurer's or health maintenance organization's audit committee in writing of any determination by that accountant that:
(1)the insurer or health maintenance organization has materially misstated the insurer's or health maintenance organization's financial condition as reported to the commissioner as of the balance sheet date being audited; or
(2)the insurer or health maintenance organization does not meet the minimum capital and surplus requirements prescribed by this code for the insurer or health maintenance organization as of that date.
(b)An insurer or health maintenance organization that receives a notice described by Subsection (a) shall:
(1)provide to the commissioner a copy of the notice not later than the fifth business day after the date the insurer or health maintenance organization receives the notice; and
(2)provide to the accountant evidence that the notice was provided to the commissioner.
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Legislative history
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.