81R10545 PB-F
By: Duncan S.B. No. 2199
A BILL TO BE ENTITLED
AN ACT
relating to the registration with the Texas Department of Insurance
of certain contract examiners.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 751.052, Insurance Code, is amended to
read as follows:
Sec. 751.052. COORDINATION WITH OTHER STATES; REGISTRATION
OF CONTRACT EXAMINER. (a) The commissioner shall coordinate the
department's market analysis and examination efforts with other
states through the National Association of Insurance
Commissioners.
(b) A person with whom another state contracts to perform
any market analysis or examination initiated by the other state of
an insurer domiciled in this state shall register with and provide
the following information to the department's chief examiner:
(1) the person's name;
(2) if the person is not an individual, the identity of
each examiner or other person who will perform any part of the
market analysis or examination;
(3) the name of the state that contracted with the
person;
(4) the identity of the insurer to be examined; and
(5) a description of each issue that the person has
been contracted to examine.
(c) It is a violation of this code for a person to accept
compensation from multiple states for the same examination, if
doing so results in duplicative costs to the insurer being
examined. It is not a violation of this code for:
(1) an examiner to conduct an examination of an
insurer for the benefit of multiple states in a coordinated
examination; and
(2) the examiner to accept compensation from the
states participating in the coordinated examination to reduce the
examination costs to the insurer being examined.
SECTION 2. Subchapter C, Chapter 401, Insurance Code, is
amended by adding Section 401.107 to read as follows:
Sec. 401.107. REGISTRATION OF CONTRACT EXAMINERS. (a) A
person with whom another state contracts to perform any examination
initiated by the other state of an insurer domiciled in this state
shall register with and provide the following information to the
department's chief examiner:
(1) the person's name;
(2) if the person is not an individual, the identity of
each examiner or other person who will perform any part of the
examination;
(3) the name of the state that contracted with the
person;
(4) the identity of the insurer to be examined; and
(5) a description of each issue that the person has
been contracted to examine.
(b) It is a violation of this code for a person to accept
compensation from multiple states for the same examination, if
doing so results in duplicative costs to the insurer being
examined. It is not a violation of this code for:
(1) an examiner to conduct an examination of an
insurer for the benefit of multiple states in a coordinated
examination; and
(2) the examiner to accept compensation from the
states participating in the coordinated examination to reduce the
examination costs to the insurer being examined.
SECTION 3. Section 4053.107, Insurance Code, is amended by
adding Subsections (d) and (e) to read as follows:
(d) A person with whom another state contracts to perform
any examination initiated by the other state of a managing general
agent licensed under this chapter shall register with and provide
the following information to the department's chief examiner:
(1) the person's name;
(2) if the person is not an individual, the identity of
each examiner or other person who will perform any part of the
examination;
(3) the name of the state that contracted with the
person;
(4) the identity of the managing general agent to be
examined; and
(5) a description of each issue that the person has
been contracted to examine.
(e) It is a violation of this code for a person to accept
compensation from multiple states for the same examination, if
doing so results in duplicative costs to the managing general agent
being examined. It is not a violation of this code for:
(1) an examiner to conduct an examination of a
managing general agent for the benefit of multiple states in a
coordinated examination; and
(2) the examiner to accept compensation from the
states participating in the coordinated examination to reduce the
examination costs to the managing general agent being examined.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.