Texas 2015 - 84th Regular

Texas House Bill HB1344 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R17476 PMO-F
2	2	By: Sheets H.B. No. 1344
3	3	Substitute the following for H.B. No. 1344:
4	4	By: Guerra C.S.H.B. No. 1344
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to credit to certain ceding insurers for reinsurance ceded
10	10	to certain assuming insurers.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 492.104(b), Insurance Code, is amended
13	13	to read as follows:
14	14	(b) The funds held as security:
15	15	(1) must be held in the United States subject to
16	16	withdrawal solely by and under the exclusive control of the ceding
17	17	insurer or, in the case of a trust, held in a qualified United
18	18	States financial institution that has been granted the authority to
19	19	operate with fiduciary powers; and
20	20	(2) may be in the form of:
21	21	(A) cash;
22	22	(B) securities that[:
23	23	[(i) are readily marketable over a national
24	24	exchange;
25	25	[(ii) have a maturity date of not later than
26	26	one year;
27	27	[(iii)] are listed by the Securities
28	28	Valuation Office of the National Association of Insurance
29	29	Commissioners[;] and
30	30	[(iv)] qualify as admitted assets;
31	31	(C) subject to Section 492.105, a clean,
32	32	irrevocable, unconditional letter of credit, issued or confirmed by
33	33	a qualified United States financial institution that has been
34	34	determined by the commissioner or the Securities Valuation Office
35	35	of the National Association of Insurance Commissioners to meet the
36	36	standards of financial condition and standing that are considered
37	37	necessary and appropriate to regulate the quality of financial
38	38	institutions whose letters of credit will be acceptable to the
39	39	commissioner; or
40	40	(D) another form of security acceptable to the
41	41	commissioner.
42	42	SECTION 2. Section 493.104(b), Insurance Code, is amended
43	43	to read as follows:
44	44	(b) The funds held as security:
45	45	(1) must be held in the United States subject to
46	46	withdrawal solely by and under the exclusive control of the ceding
47	47	insurer or, in the case of a trust, held in a qualified United
48	48	States financial institution that has been granted the authority to
49	49	operate with fiduciary powers; and
50	50	(2) may be in the form of:
51	51	(A) cash;
52	52	(B) securities that[:
53	53	[(i) are readily marketable over a national
54	54	exchange;
55	55	[(ii) have a maturity date of not later than
56	56	one year;
57	57	[(iii)] are listed by the Securities
58	58	Valuation Office of the National Association of Insurance
59	59	Commissioners[;] and
60	60	[(iv)] qualify as admitted assets;
61	61	(C) subject to Section 493.105, a clean,
62	62	irrevocable, unconditional letter of credit, issued or confirmed by
63	63	a qualified United States financial institution that has been
64	64	determined by the commissioner or the Securities Valuation Office
65	65	of the National Association of Insurance Commissioners to meet the
66	66	standards of financial condition and standing that are considered
67	67	necessary and appropriate to regulate the quality of financial
68	68	institutions whose letters of credit will be acceptable to the
69	69	commissioner; or
70	70	(D) another form of security acceptable to the
71	71	commissioner.
72	72	SECTION 3. This Act applies to funds held as security on or
73	73	after the effective date of this Act.
74	74	SECTION 4. This Act takes effect September 1, 2015.