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