| 1 | 1 | | By: Muñoz, Jr. H.B. No. 3514 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the acquisition of control of insurance companies. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 853.154, Insurance Code, is amended to |
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| 9 | 9 | | read as follows: |
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| 10 | 10 | | Sec. 823.154. REQUIREMENTS FOR ACQUISITION OR EXERCISE OF |
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| 11 | 11 | | CONTROL OR DIVESTITURE OF DOMESTIC INSURER. (a) Before a person |
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| 12 | 12 | | who directly or indirectly controls, or after the acquisition would |
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| 13 | 13 | | directly or indirectly control, a domestic insurer may in any |
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| 14 | 14 | | manner acquire a voting security of a domestic insurer or before a |
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| 15 | 15 | | person may otherwise acquire control of a domestic insurer or |
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| 16 | 16 | | exercise any control over a domestic insurer, or before a person may |
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| 17 | 17 | | initiate a divestiture of control of a domestic insurer: |
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| 18 | 18 | | (1) the acquiring person shall file with the |
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| 19 | 19 | | commissioner a statement that satisfies the requirements of |
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| 20 | 20 | | Subchapter E; |
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| 21 | 21 | | (2) the acquisition or divestiture of control must be |
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| 22 | 22 | | approved by the commissioner in accordance with this subchapter; |
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| 23 | 23 | | and |
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| 24 | 24 | | (3) if the person is initiating a divestiture of |
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| 25 | 25 | | control, the divesting person shall file with the commissioner a |
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| 26 | 26 | | notice of divestiture on a form adopted by the National Association |
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| 27 | 27 | | of Insurance Commissioners or adopted by the commissioner by rule. |
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| 28 | 28 | | (b) The acquiring person or divesting person |
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| 29 | 29 | | shall send a |
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| 30 | 30 | | copy of the statement filed under this section to the domestic |
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| 31 | 31 | | insurer. |
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| 32 | 32 | | (c) A statement or notice filed under this section must be |
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| 33 | 33 | | filed not later than the 60th day before the proposed effective date |
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| 34 | 34 | | of the acquisition or change of control or divestiture and is |
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| 35 | 35 | | subject to public inspection at the office of the commissioner. the |
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| 36 | 36 | | information provided in the statement or notice, including any |
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| 37 | 37 | | documents attached or incorporated by reference, shall be public |
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| 38 | 38 | | information subject to Chapter 552, Government Code, including any |
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| 39 | 39 | | applicable exception for required disclosures under that chapter. |
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| 40 | 40 | | (d) Notwithstanding Subsection (a), a divesting person is |
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| 41 | 41 | | not required to provide the commissioner with notice of divestiture |
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| 42 | 42 | | required by Subsection (a)(3) if an acquiring person submits the |
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| 43 | 43 | | statement required by Subsection (a)(1) and that acquisition is |
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| 44 | 44 | | approved by the commissioner. |
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| 45 | 45 | | SECTION 2. This Act takes effect September 1, 2015. |
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