| 1 | 1 | | 86R14379 CLE-D |
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| 2 | 2 | | By: Taylor S.C.R. No. 26 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | CONCURRENT RESOLUTION |
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| 6 | 6 | | WHEREAS, Like many other states, Texas incorporates |
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| 7 | 7 | | noncontroversial technical and procedural changes into its |
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| 8 | 8 | | insurance statutes by reference to the model laws and regulations |
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| 9 | 9 | | of the National Association of Insurance Commissioners; this |
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| 10 | 10 | | practice is known as incorporation by reference; and |
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| 11 | 11 | | WHEREAS, An example of incorporation by reference is Section |
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| 12 | 12 | | 421.001(c), Insurance Code, which requires the commissioner of |
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| 13 | 13 | | insurance to adopt each current formula recommended by the National |
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| 14 | 14 | | Association of Insurance Commissioners for establishing reserves |
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| 15 | 15 | | for each line of insurance; and |
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| 16 | 16 | | WHEREAS, Another example is Section 541.401(b)(2), Insurance |
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| 17 | 17 | | Code, which authorizes the commissioner of insurance to adopt a |
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| 18 | 18 | | rulemaking provision the commissioner considers necessary to |
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| 19 | 19 | | conform to the adopted procedures of the National Association of |
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| 20 | 20 | | Insurance Commissioners; and |
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| 21 | 21 | | WHEREAS, There is concern that incorporation by reference in |
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| 22 | 22 | | the Texas Insurance Code is an unconstitutional delegation of |
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| 23 | 23 | | legislative authority, and a study would help to determine the |
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| 24 | 24 | | appropriateness of using National Association of Insurance |
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| 25 | 25 | | Commissioners model laws and regulations instead of passing laws |
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| 26 | 26 | | specific to Texas; now, therefore, be it |
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| 27 | 27 | | RESOLVED, That the 86th Legislature of the State of Texas |
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| 28 | 28 | | hereby request the lieutenant governor and the speaker of the house |
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| 29 | 29 | | of representatives to create a joint interim committee to study the |
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| 30 | 30 | | use of incorporation by reference in the Texas Insurance Code; and, |
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| 31 | 31 | | be it further |
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| 32 | 32 | | RESOLVED, That the committee submit a full report, including |
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| 33 | 33 | | findings and recommendations, to the 87th Texas Legislature before |
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| 34 | 34 | | it convenes in January 2021; and, be it further |
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| 35 | 35 | | RESOLVED, That the committee's proceedings and operations be |
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| 36 | 36 | | governed by such general rules and policies for interim committees |
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| 37 | 37 | | as the 86th Texas Legislature may adopt. |
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