By: Eltife S.B. No. 1229
(In the Senate - Filed March 7, 2011; March 16, 2011, read
first time and referred to Committee on Business and Commerce;
April 13, 2011, reported favorably by the following vote: Yeas 9,
Nays 0; April 13, 2011, sent to printer.)
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 401.107, Insurance Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(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;
(6) an estimate of the examination costs to be charged
to the insurer to be examined;
(7) a copy of any contract between the person and the
state regulatory body that initiated the examination and a letter
authorizing the examination; and
(8) a list of the previous examinations conducted on
the same insurer on behalf of any state within the last three years.
(a-1) On accepting a person's registration under Subsection
(a), the department shall send written confirmation of the
acceptance to:
(1) the person;
(2) the insurer to be examined; and
(3) the state regulatory body that initiated the
examination.
SECTION 2. Section 751.052, Insurance Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(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;
(6) an estimate of the examination costs to be charged
to the insurer to be examined;
(7) a copy of any contract between the person and the
state regulatory body that initiated the examination and the letter
authorizing the examination; and
(8) a list of the previous examinations conducted on
the same insurer on behalf of any state within the last three years.
(b-1) On accepting a person's registration under Subsection
(b), the department shall send written confirmation of the
acceptance to:
(1) the person;
(2) the insurer to be examined; and
(3) the state regulatory body that initiated the
examination.
SECTION 3. Section 4053.107, Insurance Code, is amended by
amending Subsection (d) and adding Subsection (d-1) 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;
(6) an estimate of the examination costs to be charged
to the managing general agent to be examined;
(7) a copy of any contract between the person and the
state regulatory body that initiated the examination and the letter
authorizing the examination; and
(8) a list of the previous examinations conducted on
the same managing general agent on behalf of any state within the
last three years.
(d-1) On accepting a person's registration under Subsection
(d), the department shall send written confirmation of the
acceptance to:
(1) the person;
(2) the managing general agent to be examined; and
(3) the state regulatory body that initiated the
examination.
SECTION 4. The changes in law made by this Act to Sections
401.107, 751.052, and 4053.107, Insurance Code, apply only to an
examination commencing on or after September 1, 2011. An
examination commencing before September 1, 2011, is subject to the
law in effect on the date the examination was commenced, and that
law is continued in effect for that purpose.
SECTION 5. 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, 2011.
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