Texas 2009 - 81st Regular

Texas House Bill HB1476 Compare Versions

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Old	New	Differences
1	1	H.B. No. 1476
2	2
3	3
4	4	AN ACT
5	5	relating to capital stock and surplus requirements for certain
6	6	insurance companies.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 822.054(a), Insurance Code, is amended
9	9	to read as follows:
10	10	(a) An insurance company must have capital stock in an
11	11	amount of at least $2.5 [$1] million and surplus in an amount of at
12	12	least $2.5 [$1] million.
13	13	SECTION 2. Sections 822.212(a) and (b), Insurance Code, are
14	14	amended to read as follows:
15	15	(a) Notwithstanding Section 822.203, to engage in the kinds
16	16	of insurance business for which an insurance company organized
17	17	under this chapter holds a certificate of authority in this state,
18	18	an insurance company organized under this chapter that on September
19	19	1, 2009 [1991], had less than the minimum amount of capital and
20	20	surplus required for a newly incorporated company under Section
21	21	822.054 must:
22	22	(1) not later than December 31, 2010 [2000], have
23	23	increased the amount of its capital by at least 10 [90] percent of
24	24	the difference between the amount of minimum capital required for a
25	25	newly incorporated company under Section 822.054 and the amount of
26	26	the company's capital on December 31, 2009 [1991]; [and]
27	27	(2) not later than December 31, 2011, have increased
28	28	the amount of its capital by at least 20 percent of the difference
29	29	between the amount of minimum capital required for a newly
30	30	incorporated company under Section 822.054 and the amount of the
31	31	company's capital on December 31, 2009;
32	32	(3) not later than December 31, 2012, have increased
33	33	the amount of its capital by at least 30 percent of the difference
34	34	between the amount of minimum capital required for a newly
35	35	incorporated company under Section 822.054 and the amount of the
36	36	company's capital on December 31, 2009;
37	37	(4) not later than December 31, 2013, have increased
38	38	the amount of its capital by at least 40 percent of the difference
39	39	between the amount of minimum capital required for a newly
40	40	incorporated company under Section 822.054 and the amount of the
41	41	company's capital on December 31, 2009;
42	42	(5) not later than December 31, 2014, have increased
43	43	the amount of its capital by at least 50 percent of the difference
44	44	between the amount of minimum capital required for a newly
45	45	incorporated company under Section 822.054 and the amount of the
46	46	company's capital on December 31, 2009;
47	47	(6) not later than December 31, 2015, have increased
48	48	the amount of its capital by at least 60 percent of the difference
49	49	between the amount of minimum capital required for a newly
50	50	incorporated company under Section 822.054 and the amount of the
51	51	company's capital on December 31, 2009;
52	52	(7) not later than December 31, 2016, have increased
53	53	the amount of its capital by at least 70 percent of the difference
54	54	between the amount of minimum capital required for a newly
55	55	incorporated company under Section 822.054 and the amount of the
56	56	company's capital on December 31, 2009;
57	57	(8) not later than December 31, 2017, have increased
58	58	the amount of its capital by at least 80 percent of the difference
59	59	between the amount of minimum capital required for a newly
60	60	incorporated company under Section 822.054 and the amount of the
61	61	company's capital on December 31, 2009;
62	62	(9) not later than December 31, 2018, have increased
63	63	the amount of its capital by at least 90 percent of the difference
64	64	between the amount of minimum capital required for a newly
65	65	incorporated company under Section 822.054 and the amount of the
66	66	company's capital on December 31, 2009; and
67	67	(10) not later than December 31, 2019 [2001], have at
68	68	least the minimum amount of capital required under Section 822.054
69	69	for a newly incorporated company.
70	70	(b) An insurance company that on September 1, 2009 [1991],
71	71	had less than the minimum amount of capital and surplus required for
72	72	a newly incorporated company under Section 822.054 shall
73	73	immediately increase the amount of its capital and surplus to an
74	74	amount equal to the required amount of capital and surplus under
75	75	Section 822.054 if there is:
76	76	(1) a change in the control of at least 50 percent of
77	77	the voting securities of the insurance company;
78	78	(2) a change in the control of at least 50 percent of
79	79	the voting securities of a holding company controlling the
80	80	insurance company; or
81	81	(3) a change in control of at least 50 percent by any
82	82	other method of control if the insurance company or holding company
83	83	is not controlled by voting securities.
84	84	SECTION 3. This Act takes effect September 1, 2009.
85	85	______________________________ ______________________________
86	86	President of the Senate Speaker of the House
87	87	I certify that H.B. No. 1476 was passed by the House on April
88	88	15, 2009, by the following vote: Yeas 147, Nays 0, 1 present, not
89	89	voting.
90	90	______________________________
91	91	Chief Clerk of the House
92	92	I certify that H.B. No. 1476 was passed by the Senate on May
93	93	21, 2009, by the following vote: Yeas 31, Nays 0.
94	94	______________________________
95	95	Secretary of the Senate
96	96	APPROVED: _____________________
97	97	Date
98	98	_____________________
99	99	Governor