| 1 | 1 | | By: Carona S.B. No. 801 |
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| 2 | 2 | | (Sheets) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to security deposit requirements for certain insurance |
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| 8 | 8 | | companies. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subsections (b) and (d), Section 861.252, |
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| 11 | 11 | | Insurance Code, are amended to read as follows: |
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| 12 | 12 | | (b) If, as a prerequisite to engaging in the business of |
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| 13 | 13 | | insurance in another state, country, or province, a general |
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| 14 | 14 | | casualty company is required to deposit with the appropriate |
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| 15 | 15 | | officer of that state, country, or province, or with the |
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| 16 | 16 | | comptroller, securities or cash [in excess of the deposit made |
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| 17 | 17 | | under Subsection (a)], the company may deposit with the comptroller |
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| 18 | 18 | | any authorized securities or cash sufficient to meet the |
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| 19 | 19 | | requirement. The comptroller shall receive and hold the deposit |
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| 20 | 20 | | exclusively for the protection of policyholders of the company. |
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| 21 | 21 | | (d) A general casualty company may change the company's |
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| 22 | 22 | | securities on deposit with the comptroller by withdrawing those |
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| 23 | 23 | | securities and substituting an equal amount of other securities |
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| 24 | 24 | | consisting only of: |
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| 25 | 25 | | (1) United States currency; |
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| 26 | 26 | | (2) bonds of any state; |
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| 27 | 27 | | (3) bonds or other evidences of indebtedness of the |
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| 28 | 28 | | United States the principal and interest of which are guaranteed by |
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| 29 | 29 | | the United States; |
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| 30 | 30 | | (4) bonds or other interest-bearing evidences of |
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| 31 | 31 | | indebtedness of a county or municipality of any state; |
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| 32 | 32 | | (5) notes secured by first mortgages: |
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| 33 | 33 | | (A) on otherwise unencumbered real property in |
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| 34 | 34 | | this state the title to which is valid; and |
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| 35 | 35 | | (B) the payment of which is insured wholly or |
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| 36 | 36 | | partly by the United States; or |
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| 37 | 37 | | (6) another form of security acceptable to the |
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| 38 | 38 | | commissioner [authorized by Subsection (a)]. |
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| 39 | 39 | | SECTION 2. Subsection (a), Section 861.252, and Section |
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| 40 | 40 | | 982.306, Insurance Code, are repealed. |
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| 41 | 41 | | SECTION 3. This Act takes effect immediately if it receives |
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| 42 | 42 | | a vote of two-thirds of all the members elected to each house, as |
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| 43 | 43 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 44 | 44 | | Act does not receive the vote necessary for immediate effect, this |
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| 45 | 45 | | Act takes effect September 1, 2013. |
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