By: Oliverson H.B. No. 3771
A BILL TO BE ENTITLED
AN ACT
relating to the approval of insurance companies to provide certain
structured settlement annuity contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 142.009, Property Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) In approving an insurance company under Subsection
(a)(3), the court may consider whether the company:
(1) holds an issuer credit [an industry] rating
equivalent to a NAIC 1 designation from a national or international
[at least two of the following] rating agency that [organizations]:
(A) has registered with the Securities and
Exchange Commission [A. M. Best Company: A++ or A+];
(B) is designated as a nationally recognized
statistical rating organization [Duff & Phelps Credit Rating
Company Insurance Company Claims Paying Ability Rating: AA-, AA,
AA+, or AAA]; and
(C) is on the list of Credit Rating Providers by
the Securities Valuation Office of the National Association of
Insurance Commissioners [Moody's Investors Service Claims Paying
Ability Rating: Aa3, Aa2, Aa1, or aaa; or
[(D) Standard & Poor's Corporation Insurer
Claims-Paying Ability Rating:
AA-, AA, AA+, or AAA];
(2) is an affiliate, as that term is described by
Section 823.003, Insurance Code, of a liability insurance carrier
involved in the suit for which the structured settlement is
created; or
(3) is connected in any way to a person obligated to
fund the structured settlement.
(c) The presiding judge may resolve disputes regarding
which company will provide the annuity contract for a structured
settlement by making a determination that is in the best interests
of the beneficiary of the structured settlement, taking into
account factors customarily considered in making a determination
under Section 141.004, Civil Practice and Remedies Code.
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, 2019.