| 1 | | - | H.B. No. 3771 |
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| 1 | + | By: Oliverson (Senate Sponsor - Zaffirini) H.B. No. 3771 |
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| 2 | + | (In the Senate - Received from the House May 7, 2019; |
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| 3 | + | May 10, 2019, read first time and referred to Committee on Business & |
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| 4 | + | Commerce; May 20, 2019, reported favorably by the following vote: |
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| 5 | + | Yeas 9, Nays 0; May 20, 2019, sent to printer.) |
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| 6 | + | Click here to see the committee vote |
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| 4 | 10 | | AN ACT |
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| 5 | 11 | | relating to the approval of insurance companies to provide certain |
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| 6 | 12 | | structured settlement annuity contracts. |
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| 7 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 14 | | SECTION 1. Section 142.009(b), Property Code, is amended to |
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| 9 | 15 | | read as follows: |
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| 10 | 16 | | (b) In approving an insurance company under Subsection |
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| 11 | 17 | | (a)(3), the court may consider whether the company: |
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| 12 | 18 | | (1) holds an issuer credit [an industry] rating |
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| 13 | 19 | | equivalent to a National Association of Insurance Commissioners |
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| 14 | 20 | | NAIC 1 designation from a national or international [at least two of |
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| 15 | 21 | | the following] rating agency that [organizations]: |
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| 16 | 22 | | (A) has registered with the Securities and |
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| 17 | 23 | | Exchange Commission [A. M. Best Company: A++ or A+]; |
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| 18 | 24 | | (B) is designated as a nationally recognized |
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| 19 | 25 | | statistical rating organization [Duff & Phelps Credit Rating |
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| 20 | 26 | | Company Insurance Company Claims Paying Ability Rating: AA-, AA, |
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| 21 | 27 | | AA+, or AAA]; and |
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| 22 | 28 | | (C) is on the list of Credit Rating Providers by |
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| 23 | 29 | | the Securities Valuation Office of the National Association of |
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| 24 | 30 | | Insurance Commissioners [Moody's Investors Service Claims Paying |
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| 25 | 31 | | Ability Rating: Aa3, Aa2, Aa1, or aaa; or |
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| 26 | 32 | | [(D) Standard & Poor's Corporation Insurer |
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| 27 | 33 | | Claims-Paying Ability Rating: AA-, AA, AA+, or AAA]; |
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| 28 | 34 | | (2) is an affiliate, as that term is described by |
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| 29 | 35 | | Section 823.003, Insurance Code, of a liability insurance carrier |
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| 30 | 36 | | involved in the suit for which the structured settlement is |
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| 31 | 37 | | created; or |
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| 32 | 38 | | (3) is connected in any way to a person obligated to |
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| 33 | 39 | | fund the structured settlement. |
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| 34 | 40 | | SECTION 2. This Act takes effect immediately if it receives |
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| 35 | 41 | | a vote of two-thirds of all the members elected to each house, as |
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| 36 | 42 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 37 | 43 | | Act does not receive the vote necessary for immediate effect, this |
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| 38 | 44 | | Act takes effect September 1, 2019. |
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| 39 | | - | ______________________________ ______________________________ |
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| 40 | | - | President of the Senate Speaker of the House |
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| 41 | | - | I certify that H.B. No. 3771 was passed by the House on May 7, |
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| 42 | | - | 2019, by the following vote: Yeas 146, Nays 1, 1 present, not |
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| 43 | | - | voting. |
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| 44 | | - | ______________________________ |
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| 45 | | - | Chief Clerk of the House |
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| 46 | | - | I certify that H.B. No. 3771 was passed by the Senate on May |
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| 47 | | - | 22, 2019, by the following vote: Yeas 31, Nays 0. |
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| 48 | | - | ______________________________ |
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| 49 | | - | Secretary of the Senate |
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| 50 | | - | APPROVED: _____________________ |
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| 51 | | - | Date |
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| 52 | | - | _____________________ |
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| 53 | | - | Governor |
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| 45 | + | * * * * * |
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