Texas 2009 - 81st Regular

Texas Senate Bill SB2342 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	By: Averitt S.B. No. 2342
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the regulation of certain insurers.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subsection (a), Article 5.13, Insurance Code, is
9	9	amended to read as follows:
10	10	(a) This subchapter applies to every insurance company,
11	11	corporation, interinsurance exchange, mutual, reciprocal,
12	12	association, Lloyd's plan, or other organization or insurer writing
13	13	any of the characters of insurance business herein set forth,
14	14	hereinafter called "Insurer"; provided that nothing in this entire
15	15	subchapter shall be construed to apply to any county or farm mutual
16	16	insurance company or association, as regulated under Chapters 911
17	17	and 912 of this code, except that[:
18	18	[(1)] Article 5.13-2 of this code shall apply to a
19	19	county mutual insurance company with respect to personal automobile
20	20	and commercial automobile insurance, residential and commercial
21	21	property insurance, and inland marine insurance[;
22	22	[(2) Article 5.20 of this code shall apply to a county
23	23	mutual insurance company with respect to each line of insurance
24	24	that a county mutual insurance company is authorized to write under
25	25	Section 912.151; and
26	26	[(3) Article 5.20 of this code shall apply to a farm
27	27	mutual insurance company with respect to each line of insurance
28	28	that a farm mutual insurance company is authorized to write under
29	29	Section 911.151].
30	30	SECTION 2. Subsection (d), Section 822.055, Insurance Code,
31	31	is amended to read as follows:
32	32	(d) The shareholders of an insurance company authorizing
33	33	par value shares of stock must in good faith subscribe and fully pay
34	34	for shares representing at least 50 percent of the total par value
35	35	of the authorized shares with a par value [before the company:
36	36	[(1) is granted a charter; or
37	37	[(2) amends its charter to:
38	38	[(A) authorize the issuance of par value shares;
39	39	or
40	40	[(B) increase or decrease from time to time the
41	41	number of authorized par value shares].
42	42	SECTION 3. Subsection (d), Section 822.056, Insurance Code,
43	43	is amended to read as follows:
44	44	(d) The shareholders of an insurance company authorizing
45	45	shares of stock without par value must in good faith subscribe and
46	46	pay for shares representing at least 50 percent of the authorized
47	47	shares without par value before the company is granted a charter [or
48	48	has its charter amended to authorize the issuance of shares without
49	49	par value]. The total amount paid for the shares must be at least
50	50	$250,000.
51	51	SECTION 4. Subsection (a), Section 912.152, Insurance Code,
52	52	is amended to read as follows:
53	53	(a) A county mutual insurance company is subject to:
54	54	(1) Sections 1952.051-1952.055;
55	55	(2) Subchapter B, Chapter 2002; and
56	56	(3) Chapter 2301[; and
57	57	[(4) Articles 5.06 and 5.35].
58	58	SECTION 5. Subsection (b), Section 1953.001, Insurance
59	59	Code, is amended to read as follows:
60	60	(b) A type or class of insurance to which this section
61	61	applies is excluded from regulation under this chapter and:
62	62	(1) Articles 5.01, 5.01B, 5.03, 5.04, and 5.04-1[,
63	63	5.06, 5.10, and 5.11];
64	64	(2) Chapters 251 and 254;
65	65	(3) Subchapters A and B, Chapter 1806; and
66	66	(4) Chapters 1951 and 1952.
67	67	SECTION 6. The following sections of the Insurance Code are
68	68	repealed:
69	69	(1) Section 911.067;
70	70	(2) Section 912.061; and
71	71	(3) Section 912.302.
72	72	SECTION 7. (a) The repeal by this Act of Sections 911.067
73	73	and 912.061, Insurance Code, does not apply to an application for an
74	74	extension of charter submitted before the effective date of this
75	75	Act. An application submitted before the effective date of this Act
76	76	is governed by the law in effect immediately before the effective
77	77	date of this Act, and that law is continued in effect for that
78	78	purpose.
79	79	(b) The repeal by this Act of Section 912.302, Insurance
80	80	Code, applies only to an annual statement filed on or after the
81	81	effective date of this Act. A statement filed before the effective
82	82	date of this Act is governed by the law in effect immediately before
83	83	the effective date of this Act, and that law is continued in effect
84	84	for that purpose.
85	85	SECTION 8. This Act takes effect September 1, 2009.