By: Taylor of Galveston S.B. No. 1449
(In the Senate - Filed March 8, 2017; March 20, 2017, read
first time and referred to Committee on Business & Commerce;
April 24, 2017, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 24, 2017,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1449 By: Taylor of Galveston
A BILL TO BE ENTITLED
AN ACT
relating to an insurer's compliance with National Association of
Insurance Commissioners requirements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 36.004, Insurance Code, is amended to
read as follows:
Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS REQUIREMENTS; INTERIM RULES. (a) Except
as provided by Subsection (c) and Section 36.005 and
notwithstanding any other law, the department may not require an
insurer to comply with a rule, regulation, directive, or standard
adopted by the National Association of Insurance Commissioners,
including a rule, regulation, directive, or standard relating to
policy reserves, unless application of that version of the rule,
regulation, directive, or standard is expressly authorized by
statute [and approved by the commissioner].
(b) For purposes of Subsection (a), a version of a rule,
regulation, directive, or standard is expressly authorized by
statute if:
(1) the statute explicitly authorizes that version; or
(2) that version is the latest version of the rule,
regulation, directive, or standard on the date that the statute was
enacted.
(c) The commissioner may adopt an interim rule to require
compliance with a rule, regulation, directive, or standard adopted
by the National Association of Insurance Commissioners if:
(1) the commissioner finds the rule is technical or
nonsubstantive in nature or necessary to preserve the department's
accreditation; and
(2) before the adoption of the rule, the commissioner
provides the standing committees of the senate and house of
representatives with primary jurisdiction over the department with
written notice of the commissioner's intent to adopt the rule.
(d) Unless the legislature during the following regular
legislative session enacts a law expressly approving or reflecting
the substance of an interim rule adopted under Subsection (c), the
rule is effective until the earlier of:
(1) the day after the date on which the session ends;
or
(2) the effective date of a law that expressly
disapproves of or supersedes the rule.
SECTION 2. 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.
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