By: Hancock S.B. No. 1073
(Smithee)
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. Sections 823.0595(d) and (f), Insurance Code,
are amended to read as follows:
(d) Except as provided by Subsection (e), the ultimate
controlling person of a domestic [an] insurer that is authorized,
admitted, or eligible to engage in the business of insurance only in
this state and has [with] total direct or assumed annual premiums of
less than $300 million is not required to submit an enterprise risk
report under Subsection (a) unless the ultimate controlling person
of the domestic insurer also controls other insurers that do not
meet the requirements of this subsection. For the purposes of this
subsection, an insurer is not considered to be authorized,
admitted, or eligible to engage in the business of insurance only in
this state if the insurer directly or indirectly writes or assumes
insurance in any manner in another state.
(f) An insurer [or health maintenance organization] that in
the preceding calendar year had direct written and assumed premiums
of more than $300 million but less than $500 million and otherwise
meets the requirements of Subsection (d) may request an exemption
from the reporting requirements of Subsection (a) by filing with
the commissioner a written statement describing the undue financial
or organizational hardship the insurer [or health maintenance
organization] would suffer as a result of complying with Subsection
(a). The commissioner may grant the exemption if the commissioner
finds that compliance with Subsection (a) would impose an undue
financial or organizational hardship on the insurer [or health
maintenance organization].
SECTION 3. 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.