By: Carona S.R. No. 1068
SENATE RESOLUTION
BE IT RESOLVED by the Senate of the State of Texas, 83rd
Legislature, Regular Session, 2013, That Senate Rule 12.03 be
suspended in part as provided by Senate Rule 12.08 to enable the
conference committee appointed to resolve the differences on
House Bill 3106 (compensatory payments and reinsurance
agreements made in connection with the issuance of title
insurance) to consider and take action on the following matter:
Senate Rule 12.03(4) is suspended to permit the committee
to add text on a matter which is not included in either the house
or senate version of the bill by adding the following new
SECTIONS to the bill:
SECTION 2. Section 2551.305, Insurance Code, is amended
by adding Subsection (e) to read as follows:
(e) Notwithstanding any other provision of this
subchapter, a title insurance company may obtain reinsurance by a
reinsurance treaty or other reinsurance agreement from an
assuming insurer with a financial strength rating of B+ or better
from the A. M. Best Company that meets the requirements of
Subchapter C, Chapter 493, if the title insurance company has
provided the department with an affidavit that:
(1) contains facts that demonstrate the title
insurance company was unable after diligent effort to procure
sufficient reinsurance from another title insurance company; and
(2) states the terms of the reinsurance treaty or
other reinsurance agreement that the title insurance company
will obtain.
SECTION 4. The change in law made by Section 2551.305(e),
Insurance Code, as added by this Act, applies only to reinsurance
obtained on or after the effective date of this Act. Reinsurance
obtained before the effective date of this Act is governed by the
law as it existed immediately before the effective date of this
Act, and that law is continued in effect for that purpose.
Explanation: This addition is necessary to allow a title
insurance company, on satisfaction of certain requirements, to
obtain reinsurance from certain insurers.
_______________________________
President of the Senate
I hereby certify that the
above Resolution was adopted by
the Senate on May 26, 2013, by the
following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate