Texas 2013 - 83rd Regular

Texas Senate Bill SB841 Compare Versions

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Old	New	Differences
1	1	83R24319 MEW-F
2	2	By: Hancock S.B. No. 841
3	3	(Smithee)
4	4	Substitute the following for S.B. No. 841: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to certain authorized investments under the Insurance
10	10	Code.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 424.064(d), Insurance Code, is amended
13	13	to read as follows:
14	14	(d) Except as provided by Section 862.002, an insurer may
15	15	not own, develop, or hold an equity interest in any residential
16	16	property or subdivision, single or multiunit family dwelling
17	17	property, or undeveloped real property to subdivide for or develop
18	18	residential, single or multiunit family dwellings. This subsection
19	19	does not apply to an insurer with admitted assets of $10 billion or
20	20	more.
21	21	SECTION 2. Sections 424.068(a) and (b), Insurance Code, are
22	22	amended to read as follows:
23	23	(a) In addition to the investments in Canada authorized by
24	24	Sections 424.051, 424.058-424.071, and 424.074 and subject to this
25	25	section, an insurer may invest the insurer's funds in excess of
26	26	minimum capital and surplus in [an investment in] a foreign
27	27	commonwealth, territory, or possession of the United States or[,] a
28	28	foreign country other than Canada, or invest in debt obligations
29	29	and investments within a foreign commonwealth, territory, or
30	30	possession of the United States or within a foreign country other
31	31	than Canada [a foreign security originating in one of those
32	32	commonwealths, territories, possessions, or countries,] if:
33	33	(1) the investment is similar to investments the
34	34	insurer is authorized by Sections 424.051, 424.058-424.071, and
35	35	424.074 to make within the United States or Canada; and
36	36	(2) the [if a] debt obligation or [, the] investment is
37	37	rated one or two by the securities valuation office.
38	38	(b) The aggregate amount of an insurer's investments in a
39	39	single foreign jurisdiction under Sections 424.051,
40	40	424.058-424.071, and 424.074 or of an insurer's debt obligations or
41	41	investments within [in] a single foreign jurisdiction may not
42	42	exceed:
43	43	(1) as to a foreign jurisdiction that is given a
44	44	sovereign debt rating of one by the securities valuation office, 10
45	45	percent of the insurer's admitted assets; [or]
46	46	(2) as to a debt obligation or investment within a
47	47	foreign jurisdiction that is rated one or two by the securities
48	48	valuation office, 10 percent of the insurer's admitted assets; or
49	49	(3) as to any [other] foreign investment other than an
50	50	investment described by Subdivision (1) or (2) [jurisdiction], five
51	51	percent of the insurer's admitted assets.
52	52	SECTION 3. Section 425.119(f), Insurance Code, is amended
53	53	to read as follows:
54	54	(f) Except as provided by Subsection (g), an insurance
55	55	company may not own, develop, or hold an equity interest in any
56	56	residential property or subdivision, single or multiunit family
57	57	dwelling property, or undeveloped real property to subdivide for or
58	58	develop residential or single or multiunit family dwellings. This
59	59	subsection does not apply to an insurer with admitted assets of $10
60	60	billion or more, as determined from the insurer's annual statements
61	61	that are made as of the December 31 that precedes the date of the
62	62	determination and are filed with the department as required by law.
63	63	SECTION 4. This Act takes effect September 1, 2013.