Texas 2015 - 84th Regular

Texas Senate Bill SB1093 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Creighton S.B. No. 1093
2		-	(Sheets)
	1	+	S.B. No. 1093
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to credit to certain ceding insurers for reinsurance ceded
8	6		to certain assuming insurers.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 492.104(b), Insurance Code, is amended
11	9		to read as follows:
12	10		(b) The funds held as security:
13	11		(1) must be held in the United States subject to
14	12		withdrawal solely by and under the exclusive control of the ceding
15	13		insurer or, in the case of a trust, held in a qualified United
16	14		States financial institution that has been granted the authority to
17	15		operate with fiduciary powers; and
18	16		(2) may be in the form of:
19	17		(A) cash;
20	18		(B) securities that[:
21	19		[(i) are readily marketable over a national
22	20		exchange;
23	21		[(ii) have a maturity date of not later than
24	22		one year;
25	23		[(iii)] are listed by the Securities
26	24		Valuation Office of the National Association of Insurance
27	25		Commissioners[;] and
28	26		[(iv)] qualify as admitted assets;
29	27		(C) subject to Section 492.105, a clean,
30	28		irrevocable, unconditional letter of credit, issued or confirmed by
31	29		a qualified United States financial institution that has been
32	30		determined by the commissioner or the Securities Valuation Office
33	31		of the National Association of Insurance Commissioners to meet the
34	32		standards of financial condition and standing that are considered
35	33		necessary and appropriate to regulate the quality of financial
36	34		institutions whose letters of credit will be acceptable to the
37	35		commissioner; or
38	36		(D) another form of security acceptable to the
39	37		commissioner.
40	38		SECTION 2. Section 493.104(b), Insurance Code, is amended
41	39		to read as follows:
42	40		(b) The funds held as security:
43	41		(1) must be held in the United States subject to
44	42		withdrawal solely by and under the exclusive control of the ceding
45	43		insurer or, in the case of a trust, held in a qualified United
46	44		States financial institution that has been granted the authority to
47	45		operate with fiduciary powers; and
48	46		(2) may be in the form of:
49	47		(A) cash;
50	48		(B) securities that[:
51	49		[(i) are readily marketable over a national
52	50		exchange;
53	51		[(ii) have a maturity date of not later than
54	52		one year;
55	53		[(iii)] are listed by the Securities
56	54		Valuation Office of the National Association of Insurance
57	55		Commissioners[;] and
58	56		[(iv)] qualify as admitted assets;
59	57		(C) subject to Section 493.105, a clean,
60	58		irrevocable, unconditional letter of credit, issued or confirmed by
61	59		a qualified United States financial institution that has been
62	60		determined by the commissioner or the Securities Valuation Office
63	61		of the National Association of Insurance Commissioners to meet the
64	62		standards of financial condition and standing that are considered
65	63		necessary and appropriate to regulate the quality of financial
66	64		institutions whose letters of credit will be acceptable to the
67	65		commissioner; or
68	66		(D) another form of security acceptable to the
69	67		commissioner.
70	68		SECTION 3. This Act applies to funds held as security on or
71	69		after the effective date of this Act.
72	70		SECTION 4. This Act takes effect September 1, 2015.
	71	+	______________________________ ______________________________
	72	+	President of the Senate Speaker of the House
	73	+	I hereby certify that S.B. No. 1093 passed the Senate on
	74	+	April 15, 2015, by the following vote: Yeas 30, Nays 0, one
	75	+	present not voting.
	76	+	______________________________
	77	+	Secretary of the Senate
	78	+	I hereby certify that S.B. No. 1093 passed the House
	79	+	on May 11, 2015, by the following vote: Yeas 123, Nays 1, two
	80	+	present not voting.
	81	+	______________________________
	82	+	Chief Clerk of the House
	83	+	Approved:
	84	+	______________________________
	85	+	Date
	86	+	______________________________
	87	+	Governor