85R31312 SCL-F
By: Taylor of Galveston S.B. No. 1449
(Bonnen of Galveston)
Substitute the following for S.B. No. 1449: No.
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; REPORT.
(a) Except as provided by Subsection (b) or (c) or Section 36.005,
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:
(1) application of the rule, regulation, directive, or
standard is expressly authorized by statute; or
(2) a statute authorizes the commissioner to adopt
rules consistent with the rule, regulation, directive, or standard
[and approved by the commissioner].
(b) Subsection (a) does not apply to:
(1) any statute that is based on or substantially
similar to a National Association of Insurance Commissioners model
law or regulation;
(2) Sections 401.010 and 421.001(c);
(3) securities valuations by the Securities Valuation
Office of the National Association of Insurance Commissioners under
this code;
(4) mortality and reserve tables under Chapters 425
and 1105;
(5) financial reporting under Chapter 443;
(6) fraud reporting under Chapters 701 and 1111A;
(7) actuarial standards for reserve reporting under
Chapters 401, 802, and 2551;
(8) the Own Risk and Solvency Assessment Guidance
Manual and confidentiality agreements under Chapter 830; or
(9) the Interstate Insurance Product Regulation
Compact under Chapter 5001.
(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) A substantive rule adopted under Subsection (c) shall
remain in effect only until 30 days following the end of the next
session of the legislature unless a law is enacted that authorizes
the subject matter of the rule. If a law is enacted that authorizes
the subject matter of the rule, the rule will continue in effect.
(e) Not later than December 31 of each even-numbered year,
the department shall submit to the standing committees of the
senate and house of representatives with primary jurisdiction over
the department a written report that includes:
(1) the specific statutes in this code and rules
adopted by the commissioner that are based on National Association
of Insurance Commissioners model laws or regulations;
(2) statutory changes that may be necessary to
maintain the department's accreditation; and
(3) the most recent standards the National Association
of Insurance Commissioners has adopted or published that are
necessary to maintain the department's accreditation.
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.