Prohibition of Action To Avoid Application of Subchapter

Sec. 823.104. PROHIBITION OF ACTION TO AVOID APPLICATION OF SUBCHAPTER. (a) A domestic insurer may not enter into transactions with persons in the insurer's insurance holding company system if: (1) the transactions are part of a plan or series of similar transactions; and (2) the purpose of entering into the transactions is to avoid a threshold amount provided by Section 823.103. (b) If the commissioner determines that over any 12-month period a domestic insurer enters into transactions that violate Subsection (a), the commissioner may: (1) consider the cumulative effect of the transactions; and (2) apply: (A) Section 823.103; or (B) sanctions under this code. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. Amended by: Acts 2013, 83rd Leg., R.S., Ch. 1087 (H.B. 3460), Sec. 5, eff. June 14, 2013.