| 1 | 1 | | 85R6546 BEE-F |
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| 2 | 2 | | By: Smithee H.B. No. 3202 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to registration statement and reporting requirements of |
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| 8 | 8 | | insurers in an insurance holding company system. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 823.054(b), Insurance Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (b) If the amount of a single transaction or the total |
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| 13 | 13 | | amount of all transactions involving sales, purchases, exchanges, |
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| 14 | 14 | | loans or other extensions of credit, or investments is more than |
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| 15 | 15 | | [the lesser of] one-half of one percent of an insurer's admitted |
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| 16 | 16 | | assets [or five percent of an insurer's surplus,] as of December 31 |
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| 17 | 17 | | of the year preceding the date of the transaction or transactions, |
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| 18 | 18 | | the transaction or transactions, respectively, are considered to be |
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| 19 | 19 | | material for purposes of this section. |
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| 20 | 20 | | SECTION 2. Section 823.0595(a), Insurance Code, is amended |
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| 21 | 21 | | to read as follows: |
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| 22 | 22 | | (a) The [Except as provided by Subsections (d) and (f), the] |
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| 23 | 23 | | ultimate controlling person, as defined by Section 823.055, of each |
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| 24 | 24 | | insurer required to file an annual registration shall file with the |
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| 25 | 25 | | registration an annual enterprise risk report. The report must, to |
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| 26 | 26 | | the best of the ultimate controlling person's knowledge, identify |
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| 27 | 27 | | the material risks within the insurance holding company system that |
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| 28 | 28 | | may pose enterprise risk to the insurer. The report must be filed |
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| 29 | 29 | | with the lead state commissioner of the insurance holding company |
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| 30 | 30 | | system, as determined by the commissioner. In determining the lead |
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| 31 | 31 | | state commissioner, the commissioner shall consider the procedures |
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| 32 | 32 | | adopted by the National Association of Insurance Commissioners. |
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| 33 | 33 | | SECTION 3. Sections 823.0595(d), (e), and (f), Insurance |
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| 34 | 34 | | Code, are repealed. |
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| 35 | 35 | | SECTION 4. This Act takes effect immediately if it receives |
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| 36 | 36 | | a vote of two-thirds of all the members elected to each house, as |
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| 37 | 37 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 38 | 38 | | Act does not receive the vote necessary for immediate effect, this |
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| 39 | 39 | | Act takes effect September 1, 2017. |
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