APPLICATION FOR CERTIFICATE OF AUTHORITY

(a) After forming a captive insurance company, other than a captive exchange, or an attorney in fact, the incorporators or organizers must pay to the commissioner an application fee and file with the commissioner an application for a certificate of authority for a captive insurance company, which must include: (1) a financial statement certified by two principal officers; (2) a plan of operation and projections, which must include an actuarial report prepared by a qualified independent actuary; (3) the captive insurance company's certificate of formation or other documentation demonstrating the valid formation of the captive insurance company, other than a captive exchange, or the attorney in fact; (4) an affidavit by the incorporators, organizers, or officers of the captive insurance company stating that: (A) the capital and surplus, or the equivalent, are the bona fide property of the company; and (B) the certificate of formation or other documentation demonstrating the captive insurance company's or attorney in fact's valid formation is true and correct; and (5) if the application provides for the issuance of shares of stock or other type of equity instrument without par value, a certificate authenticated by the incorporators or officers stating: (A) the number of shares or other type of equity instrument without par value that are subscribed; and (B) the actual consideration received by the captive insurance company for those shares or other type of equity instrument. (b) If the commissioner is not satisfied with the affidavit filed under Subsection (a)(4), the commissioner may require that the incorporators, organizers, or officers provide at their expense additional evidence as described by Subsection (a) before the commissioner takes action on the application. (c) The application fee required under this section is $1,500 or a greater amount set by the commissioner by rule as necessary to recover the cost of administering this section. (e) Fees collected under this section shall be deposited to the credit of the Texas Department of Insurance operating account.