Texas 2017 - 85th Regular

Texas Senate Bill SB1073 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Hancock S.B. No. 1073
2		-	(Smithee)
	1	+	S.B. No. 1073
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to registration statement and reporting requirements of
8	6		insurers in an insurance holding company system.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 823.054(b), Insurance Code, is amended
11	9		to read as follows:
12	10		(b) If the amount of a single transaction or the total
13	11		amount of all transactions involving sales, purchases, exchanges,
14	12		loans or other extensions of credit, or investments is more than
15	13		[the lesser of] one-half of one percent of an insurer's admitted
16	14		assets [or five percent of an insurer's surplus,] as of December 31
17	15		of the year preceding the date of the transaction or transactions,
18	16		the transaction or transactions, respectively, are considered to be
19	17		material for purposes of this section.
20	18		SECTION 2. Sections 823.0595(d) and (f), Insurance Code,
21	19		are amended to read as follows:
22	20		(d) Except as provided by Subsection (e), the ultimate
23	21		controlling person of a domestic [an] insurer that is authorized,
24	22		admitted, or eligible to engage in the business of insurance only in
25	23		this state and has [with] total direct or assumed annual premiums of
26	24		less than $300 million is not required to submit an enterprise risk
27	25		report under Subsection (a) unless the ultimate controlling person
28	26		of the domestic insurer also controls other insurers that do not
29	27		meet the requirements of this subsection. For the purposes of this
30	28		subsection, an insurer is not considered to be authorized,
31	29		admitted, or eligible to engage in the business of insurance only in
32	30		this state if the insurer directly or indirectly writes or assumes
33	31		insurance in any manner in another state.
34	32		(f) An insurer [or health maintenance organization] that in
35	33		the preceding calendar year had direct written and assumed premiums
36	34		of more than $300 million but less than $500 million and otherwise
37	35		meets the requirements of Subsection (d) may request an exemption
38	36		from the reporting requirements of Subsection (a) by filing with
39	37		the commissioner a written statement describing the undue financial
40	38		or organizational hardship the insurer [or health maintenance
41	39		organization] would suffer as a result of complying with Subsection
42	40		(a). The commissioner may grant the exemption if the commissioner
43	41		finds that compliance with Subsection (a) would impose an undue
44	42		financial or organizational hardship on the insurer [or health
45	43		maintenance organization].
46	44		SECTION 3. This Act takes effect immediately if it receives
47	45		a vote of two-thirds of all the members elected to each house, as
48	46		provided by Section 39, Article III, Texas Constitution. If this
49	47		Act does not receive the vote necessary for immediate effect, this
50	48		Act takes effect September 1, 2017.
	49	+	______________________________ ______________________________
	50	+	President of the Senate Speaker of the House
	51	+	I hereby certify that S.B. No. 1073 passed the Senate on
	52	+	April 24, 2017, by the following vote: Yeas 29, Nays 1.
	53	+	______________________________
	54	+	Secretary of the Senate
	55	+	I hereby certify that S.B. No. 1073 passed the House on
	56	+	May 9, 2017, by the following vote: Yeas 142, Nays 3, two present
	57	+	not voting.
	58	+	______________________________
	59	+	Chief Clerk of the House
	60	+	Approved:
	61	+	______________________________
	62	+	Date
	63	+	______________________________
	64	+	Governor