By: Muñoz, Jr. H.B. No. 3514
A BILL TO BE ENTITLED
AN ACT
relating to the acquisition of control of insurance companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 853.154, Insurance Code, is amended to
read as follows:
Sec. 823.154. REQUIREMENTS FOR ACQUISITION OR EXERCISE OF
CONTROL OR DIVESTITURE OF DOMESTIC INSURER. (a) Before a person
who directly or indirectly controls, or after the acquisition would
directly or indirectly control, a domestic insurer may in any
manner acquire a voting security of a domestic insurer or before a
person may otherwise acquire control of a domestic insurer or
exercise any control over a domestic insurer, or before a person may
initiate a divestiture of control of a domestic insurer:
(1) the acquiring person shall file with the
commissioner a statement that satisfies the requirements of
Subchapter E;
(2) the acquisition or divestiture of control must be
approved by the commissioner in accordance with this subchapter;
and
(3) if the person is initiating a divestiture of
control, the divesting person shall file with the commissioner a
notice of divestiture on a form adopted by the National Association
of Insurance Commissioners or adopted by the commissioner by rule.
(b) The acquiring person or divesting person
shall send a
copy of the statement filed under this section to the domestic
insurer.
(c) A statement or notice filed under this section must be
filed not later than the 60th day before the proposed effective date
of the acquisition or change of control or divestiture and is
subject to public inspection at the office of the commissioner. the
information provided in the statement or notice, including any
documents attached or incorporated by reference, shall be public
information subject to Chapter 552, Government Code, including any
applicable exception for required disclosures under that chapter.
(d) Notwithstanding Subsection (a), a divesting person is
not required to provide the commissioner with notice of divestiture
required by Subsection (a)(3) if an acquiring person submits the
statement required by Subsection (a)(1) and that acquisition is
approved by the commissioner.
SECTION 2. This Act takes effect September 1, 2015.