By: Carona S.B. No. 801
(Sheets)
A BILL TO BE ENTITLED
AN ACT
relating to security deposit requirements for certain insurance
companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsections (b) and (d), Section 861.252,
Insurance Code, are amended to read as follows:
(b) If, as a prerequisite to engaging in the business of
insurance in another state, country, or province, a general
casualty company is required to deposit with the appropriate
officer of that state, country, or province, or with the
comptroller, securities or cash [in excess of the deposit made
under Subsection (a)], the company may deposit with the comptroller
any authorized securities or cash sufficient to meet the
requirement. The comptroller shall receive and hold the deposit
exclusively for the protection of policyholders of the company.
(d) A general casualty company may change the company's
securities on deposit with the comptroller by withdrawing those
securities and substituting an equal amount of other securities
consisting only of:
(1) United States currency;
(2) bonds of any state;
(3) bonds or other evidences of indebtedness of the
United States the principal and interest of which are guaranteed by
the United States;
(4) bonds or other interest-bearing evidences of
indebtedness of a county or municipality of any state;
(5) notes secured by first mortgages:
(A) on otherwise unencumbered real property in
this state the title to which is valid; and
(B) the payment of which is insured wholly or
partly by the United States; or
(6) another form of security acceptable to the
commissioner [authorized by Subsection (a)].
SECTION 2. Subsection (a), Section 861.252, and Section
982.306, Insurance Code, are repealed.
SECTION 3. 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, 2013.