85R6546 BEE-F
By: Smithee H.B. No. 3202
A BILL TO BE ENTITLED
AN ACT
relating to registration statement and reporting requirements of
insurers in an insurance holding company system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 823.054(b), Insurance Code, is amended
to read as follows:
(b) If the amount of a single transaction or the total
amount of all transactions involving sales, purchases, exchanges,
loans or other extensions of credit, or investments is more than
[the lesser of] one-half of one percent of an insurer's admitted
assets [or five percent of an insurer's surplus,] as of December 31
of the year preceding the date of the transaction or transactions,
the transaction or transactions, respectively, are considered to be
material for purposes of this section.
SECTION 2. Section 823.0595(a), Insurance Code, is amended
to read as follows:
(a) The [Except as provided by Subsections (d) and (f), the]
ultimate controlling person, as defined by Section 823.055, of each
insurer required to file an annual registration shall file with the
registration an annual enterprise risk report. The report must, to
the best of the ultimate controlling person's knowledge, identify
the material risks within the insurance holding company system that
may pose enterprise risk to the insurer. The report must be filed
with the lead state commissioner of the insurance holding company
system, as determined by the commissioner. In determining the lead
state commissioner, the commissioner shall consider the procedures
adopted by the National Association of Insurance Commissioners.
SECTION 3. Sections 823.0595(d), (e), and (f), Insurance
Code, are repealed.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.