Texas 2009 - 81st Regular

Texas House Bill HB4638 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R11277 AJA-F
2	2	By: Lucio III H.B. No. 4638
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of certain insurers.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Article 5.13(a), Insurance Code, is amended to
10	10	read as follows:
11	11	(a) This subchapter applies to every insurance company,
12	12	corporation, interinsurance exchange, mutual, reciprocal,
13	13	association, Lloyd's plan, or other organization or insurer writing
14	14	any of the characters of insurance business herein set forth,
15	15	hereinafter called "Insurer"; provided that nothing in this entire
16	16	subchapter shall be construed to apply to any county or farm mutual
17	17	insurance company or association, as regulated under Chapters 911
18	18	and 912 of this code, except that[:
19	19	[(1)] Article 5.13-2 of this code shall apply to a
20	20	county mutual insurance company with respect to personal automobile
21	21	and commercial automobile insurance, residential and commercial
22	22	property insurance, and inland marine insurance[;
23	23	[(2) Article 5.20 of this code shall apply to a county
24	24	mutual insurance company with respect to each line of insurance
25	25	that a county mutual insurance company is authorized to write under
26	26	Section 912.151; and
27	27	[(3) Article 5.20 of this code shall apply to a farm
28	28	mutual insurance company with respect to each line of insurance
29	29	that a farm mutual insurance company is authorized to write under
30	30	Section 911.151].
31	31	SECTION 2. Section 822.055(d), Insurance Code, is amended
32	32	to read as follows:
33	33	(d) The shareholders of an insurance company authorizing
34	34	par value shares of stock must in good faith subscribe and fully pay
35	35	for shares representing at least 50 percent of the total par value
36	36	of the authorized shares with a par value [before the company:
37	37	[(1) is granted a charter; or
38	38	[(2) amends its charter to:
39	39	[(A) authorize the issuance of par value shares;
40	40	or
41	41	[(B) increase or decrease from time to time the
42	42	number of authorized par value shares].
43	43	SECTION 3. Section 822.056(d), Insurance Code, is amended
44	44	to read as follows:
45	45	(d) The shareholders of an insurance company authorizing
46	46	shares of stock without par value must in good faith subscribe and
47	47	pay for shares representing at least 50 percent of the authorized
48	48	shares without par value before the company is granted a charter [or
49	49	has its charter amended to authorize the issuance of shares without
50	50	par value]. The total amount paid for the shares must be at least
51	51	$250,000.
52	52	SECTION 4. Section 912.152(a), Insurance Code, is amended
53	53	to read as follows:
54	54	(a) A county mutual insurance company is subject to:
55	55	(1) Sections 1952.051-1952.055;
56	56	(2) Subchapter B, Chapter 2002; and
57	57	(3) Chapter 2301[; and
58	58	[(4) Articles 5.06 and 5.35].
59	59	SECTION 5. Section 912.301, Insurance Code, is amended to
60	60	read as follows:
61	61	Sec. 912.301. ANNUAL REPORT [REGARDING CONDITION OF
62	62	COMPANY]. Not later than March 1 of each year, each county mutual
63	63	insurance company shall file with the department a verified report
64	64	on a form prepared by the department of:
65	65	(1) the business conducted by the company during the
66	66	preceding year;
67	67	(2) the condition of the affairs of the company; and
68	68	(3) any other information required by the department.
69	69	[(a) The commissioner may, at any time the commissioner determines
70	70	advisable, compel written reports from a county mutual insurance
71	71	company regarding the company's condition.
72	72	[(b) The commissioner may require that the report be
73	73	verified under oath by a responsible officer of the company.]
74	74	SECTION 6. Section 1953.001(b), Insurance Code, is amended
75	75	to read as follows:
76	76	(b) A type or class of insurance to which this section
77	77	applies is excluded from regulation under this chapter and:
78	78	(1) Articles 5.01, 5.01B, 5.03, 5.04, and 5.04-1[,
79	79	5.06, 5.10, and 5.11];
80	80	(2) Chapters 251 and 254;
81	81	(3) Subchapters A and B, Chapter 1806; and
82	82	(4) Chapters 1951 and 1952.
83	83	SECTION 7. The following sections of the Insurance Code are
84	84	repealed:
85	85	(1) Section 911.067;
86	86	(2) Section 912.061; and
87	87	(3) Section 912.302.
88	88	SECTION 8. (a) The repeal by this Act of Sections 911.067
89	89	and 912.061, Insurance Code, does not apply to an application for an
90	90	extension of charter submitted before the effective date of this
91	91	Act. An application submitted before the effective date of this Act
92	92	is governed by the law in effect immediately before the effective
93	93	date of this Act, and that law is continued in effect for that
94	94	purpose.
95	95	(b) The repeal by this Act of Section 912.302, Insurance
96	96	Code, applies only to an annual statement filed on or after the
97	97	effective date of this Act. A statement filed before the effective
98	98	date of this Act is governed by the law in effect immediately before
99	99	the effective date of this Act, and that law is continued in effect
100	100	for that purpose.
101	101	SECTION 9. This Act takes effect September 1, 2009.