Texas 2009 - 81st Regular

Texas House Bill HB1761 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	81R10171 PB-F
2	2	By: Thompson H.B. No. 1761
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the reserve requirements for credit life and credit
8	8	accident and health insurance.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 425.058(l), Insurance Code, is amended
11	11	to read as follows:
12	12	(l)(1) Notwithstanding any other law, the minimum reserve
13	13	requirements applicable to a policy issued under Chapter 1153
14	14	before January 1, 2009, are met if, in the aggregate, the reserves
15	15	are maintained at 100 percent of the 1980 Commissioner's Standard
16	16	Ordinary Mortality Table, with interest that does not exceed 5.5
17	17	percent. This subsection expires September 1, 2013.
18	18	(2) The minimum reserve requirements applicable to a
19	19	credit life policy issued under Chapter 1153 on or after January 1,
20	20	2009, shall be based on minimum reserve standards established by
21	21	the commissioner by rule. In adopting rules under this section, the
22	22	commissioner shall adopt rules based on:
23	23	(A) the 2001 CSO Male Composite Ultimate
24	24	Mortality Table for male and female insureds; or
25	25	(B) the most recent CSO Mortality Table approved
26	26	by the National Association of Insurance Commissioners for use on
27	27	credit life policy reserves.
28	28	(3) The minimum reserve requirements applicable to a
29	29	single premium credit disability contract issued under Chapter 1153
30	30	on or after January 1, 2009, shall be based on minimum reserve
31	31	standards established by the commissioner by rule. In adopting
32	32	rules under this section, the commissioner shall adopt rules based
33	33	on:
34	34	(A) the 1985 Commissioners Individual Disability
35	35	Table A (85CIDA); or
36	36	(B) the most recent Commissioner's Disability
37	37	Table approved by the National Association of Insurance
38	38	Commissioners for use on credit disability policy reserves.
39	39	(4) For all credit insurance contracts, if the net
40	40	premium refund liability exceeds the aggregate recorded contract
41	41	reserve, the insurer shall establish an additional reserve
42	42	liability that is equal to the excess of the net refund liability
43	43	over the contract reserve recorded. The net refund liability may
44	44	include consideration of commission, premium tax, and other
45	45	expenses recoverable.
46	46	(5) Computation of reserves for policies and contracts
47	47	described by this subsection shall be computed annually from each
48	48	applicable table using data from the preceding year. Reserve
49	49	calculations shall be reported by each insurer as part of the
50	50	insurer's annual statement required to be filed on March 1 of each
51	51	year.
52	52	(6) In addition to the rules required to be adopted
53	53	under this subsection, the commissioner may adopt other rules to
54	54	implement this subsection.
55	55	SECTION 2. (a) The change in law made by this Act applies to
56	56	all credit life and credit accident and health insurance policies
57	57	issued on or after January 1, 2009.
58	58	(b) The commissioner of insurance shall adopt rules as
59	59	required to implement Section 425.058(l), Insurance Code, as
60	60	amended by this Act, not later than the 60th day after the effective
61	61	date of this Act.
62	62	(c) The initial reserve calculations under Section
63	63	425.058(l), Insurance Code, as amended by this Act, must be
64	64	reported in the annual statement required to be filed on March 1,
65	65	2010.
66	66	SECTION 3. This Act takes effect immediately if it receives
67	67	a vote of two-thirds of all the members elected to each house, as
68	68	provided by Section 39, Article III, Texas Constitution. If this
69	69	Act does not receive the vote necessary for immediate effect, this
70	70	Act takes effect September 1, 2009.