Texas 2017 - 85th Regular

Texas House Bill HB3543 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~85R20572~~ SCL-F
	1	+	85R6208 SCL-F
2	2		By: Morrison H.B. No. 3543
3		-	Substitute the following for H.B. No. 3543:
4		-	By: Phillips C.S.H.B. No. 3543
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to the applicability of certain insurance laws to certain
10	8		farm mutual insurance companies.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Section 221.001, Insurance Code, is amended by
13	11		amending Subsection (b) and adding Subsection (c) to read as
14	12		follows:
15	13		(b) This chapter does not apply to:
16	14		(1) a fraternal benefit society, including a fraternal
17	15		benefit society operating under Chapter 885;
18	16		(2) a group hospital service corporation operating
19	17		under Chapter 842;
20	18		(3) a stipulated premium company operating under
21	19		Chapter 884;
22	20		(4) a mutual assessment association, company, or
23	21		corporation regulated under Chapter 887; [or]
24	22		(5) a purely cooperative or mutual fire insurance
25	23		company carried on by its members solely for the protection of their
26	24		own property and not for profit, except as provided by Section
27	25		221.002(b)(13); or
28	26		(6) a farm mutual insurance company operating under
29	27		Chapter 911, unless the company is acting as a fronting insurer.
30	28		(c) In this section, "fronting insurer" means a farm mutual
31		-	insurance company:
32		-	~~(1) issuing an insurance policy that is the result~~ of:
33		-	(A) marketing by an insurer not affiliated with
34		-	~~the~~ farm mutual insurance company;
35		-	(B) an application submitted by a consumer to an
	29	+	insurance company issuing an insurance policy that is the result
	30	+	of:
	31	+	(1) marketing by an insurer not affiliated with the
	32	+	farm mutual insurance company;
	33	+	(2) an application submitted by a consumer to an
36	34		insurer not affiliated with the farm mutual insurance company; or
37		-	(C) an agreement with an insurer that is not a
38		-	farm mutual insurance company solely for the purpose of being
39		-	regulated under Chapter 911; or
40		-	(2) that cedes 85 percent or more of the farm mutual
41		-	insurance company's direct written premium to one or more
42		-	nonaffiliated reinsurers.
	35	+	(3) an agreement with an insurer that is not a farm
	36	+	mutual insurance company solely for the purpose of being regulated
	37	+	under Chapter 911.
43	38		SECTION 2. Section 252.005, Insurance Code, is amended to
44	39		read as follows:
45	40		Sec. 252.005. EXCEPTION. This chapter does not apply to:
46	41		(1) a farm mutual insurance company operating under
47	42		Chapter 911, unless the company is acting as a fronting insurer as
48	43		defined by Section 221.001(c); or
49	44		(2) a mutual insurance company engaged in business
50	45		under Chapter 12, Title 78, Revised Statutes, before that chapter's
51	46		repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st
52	47		Called Session, 1929, as amended by Section 1, Chapter 60, General
53	48		Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that
54	49		retains the rights and privileges under the repealed law to the
55	50		extent provided by those sections.
56	51		SECTION 3. Section 2210.006(b), Insurance Code, is amended
57	52		to read as follows:
58	53		(b) This chapter does not apply to:
59	54		(1) a farm mutual insurance company operating under
60	55		Chapter 911, unless the company is acting as a fronting insurer, as
61	56		defined by Section 221.001(c);
62	57		(2) a nonaffiliated county mutual fire insurance
63	58		company described by Section 912.310 that is writing exclusively
64	59		industrial fire insurance policies as described by Section
65	60		912.310(a)(2); or
66	61		(3) a mutual insurance company or a statewide mutual
67	62		assessment company engaged in business under Chapter 12 or 13,
68	63		Title 78, Revised Statutes, respectively, before those chapters'
69	64		repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st
70	65		Called Session, 1929, as amended by Section 1, Chapter 60, General
71	66		Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that
72	67		retains the rights and privileges under the repealed law to the
73	68		extent provided by those sections.
74	69		SECTION 4. (a) Sections 221.001 and 252.005, Insurance
75	70		Code, as amended by this Act, do not affect tax liability accruing
76	71		before the 2017 calendar year. That liability continues in effect
77	72		as if this Act had not been enacted, and the former law is continued
78	73		in effect for the collection of taxes due and for civil and criminal
79	74		enforcement of the liability for those taxes.
80	75		(b) Section 2210.006(b), Insurance Code, as amended by this
81	76		Act, applies only to participation in the Texas Windstorm Insurance
82	77		Association on or after the effective date of this Act, including
83	78		the payment of assessments the liability for which accrues on or
84	79		after that date. Participation in the Texas Windstorm Insurance
85	80		Association before the effective date of this Act, including the
86	81		payment of assessments the liability for which accrued before that
87	82		date, is governed by the law as it existed immediately before that
88	83		date, and that law is continued in effect for that purpose.
89	84		SECTION 5. This Act takes effect immediately if it receives
90	85		a vote of two-thirds of all the members elected to each house, as
91	86		provided by Section 39, Article III, Texas Constitution. If this
92	87		Act does not receive the vote necessary for immediate effect, this
93	88		Act takes effect September 1, 2017.