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Texas Senate Bill SB1449

Texas 2017 - 85th Regular

Texas Senate Bill SB1449 Compare Versions

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1-85R31312 SCL-F
21 By: Taylor of Galveston S.B. No. 1449
3- (Bonnen of Galveston)
4- Substitute the following for S.B. No. 1449: No.
52
63
74 A BILL TO BE ENTITLED
85 AN ACT
96 relating to an insurer's compliance with National Association of
107 Insurance Commissioners requirements.
118 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
129 SECTION 1. Section 36.004, Insurance Code, is amended to
1310 read as follows:
1411 Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF
15- INSURANCE COMMISSIONERS REQUIREMENTS; INTERIM RULES; REPORT.
16- (a) Except as provided by Subsection (b) or (c) or Section 36.005,
17- the department may not require an insurer to comply with a rule,
18- regulation, directive, or standard adopted by the National
19- Association of Insurance Commissioners, including a rule,
20- regulation, directive, or standard relating to policy reserves,
21- unless:
22- (1) application of the rule, regulation, directive, or
23- standard is expressly authorized by statute; or
24- (2) a statute authorizes the commissioner to adopt
25- rules consistent with the rule, regulation, directive, or standard
26- [and approved by the commissioner].
27- (b) Subsection (a) does not apply to:
28- (1) any statute that is based on or substantially
29- similar to a National Association of Insurance Commissioners model
30- law or regulation;
31- (2) Sections 401.010 and 421.001(c);
32- (3) securities valuations by the Securities Valuation
33- Office of the National Association of Insurance Commissioners under
34- this code;
35- (4) mortality and reserve tables under Chapters 425
36- and 1105;
37- (5) financial reporting under Chapter 443;
38- (6) fraud reporting under Chapters 701 and 1111A;
39- (7) actuarial standards for reserve reporting under
40- Chapters 401, 802, and 2551;
41- (8) the Own Risk and Solvency Assessment Guidance
42- Manual and confidentiality agreements under Chapter 830; or
43- (9) the Interstate Insurance Product Regulation
44- Compact under Chapter 5001.
12+ INSURANCE COMMISSIONERS REQUIREMENTS; INTERIM RULES. (a) Except
13+ as provided by Subsection (c) and Section 36.005 and
14+ notwithstanding any other law, the department may not require an
15+ insurer to comply with a rule, regulation, directive, or standard
16+ adopted by the National Association of Insurance Commissioners,
17+ including a rule, regulation, directive, or standard relating to
18+ policy reserves, unless application of that version of the rule,
19+ regulation, directive, or standard is expressly authorized by
20+ statute [and approved by the commissioner].
21+ (b) For purposes of Subsection (a), a version of a rule,
22+ regulation, directive, or standard is expressly authorized by
23+ statute if:
24+ (1) the statute explicitly authorizes that version; or
25+ (2) that version is the latest version of the rule,
26+ regulation, directive, or standard on the date that the statute was
27+ enacted.
4528 (c) The commissioner may adopt an interim rule to require
4629 compliance with a rule, regulation, directive, or standard adopted
4730 by the National Association of Insurance Commissioners if:
4831 (1) the commissioner finds the rule is technical or
4932 nonsubstantive in nature or necessary to preserve the department's
5033 accreditation; and
5134 (2) before the adoption of the rule, the commissioner
5235 provides the standing committees of the senate and house of
5336 representatives with primary jurisdiction over the department with
5437 written notice of the commissioner's intent to adopt the rule.
55- (d) A substantive rule adopted under Subsection (c) shall
56- remain in effect only until 30 days following the end of the next
57- session of the legislature unless a law is enacted that authorizes
58- the subject matter of the rule. If a law is enacted that authorizes
59- the subject matter of the rule, the rule will continue in effect.
60- (e) Not later than December 31 of each even-numbered year,
61- the department shall submit to the standing committees of the
62- senate and house of representatives with primary jurisdiction over
63- the department a written report that includes:
64- (1) the specific statutes in this code and rules
65- adopted by the commissioner that are based on National Association
66- of Insurance Commissioners model laws or regulations;
67- (2) statutory changes that may be necessary to
68- maintain the department's accreditation; and
69- (3) the most recent standards the National Association
70- of Insurance Commissioners has adopted or published that are
71- necessary to maintain the department's accreditation.
38+ (d) Unless the legislature during the following regular
39+ legislative session enacts a law expressly approving or reflecting
40+ the substance of an interim rule adopted under Subsection (c), the
41+ rule is effective until the earlier of:
42+ (1) the day after the date on which the session ends;
43+ or
44+ (2) the effective date of a law that expressly
45+ disapproves of or supersedes the rule.
7246 SECTION 2. This Act takes effect immediately if it receives
7347 a vote of two-thirds of all the members elected to each house, as
7448 provided by Section 39, Article III, Texas Constitution. If this
7549 Act does not receive the vote necessary for immediate effect, this
7650 Act takes effect September 1, 2017.