87R3672 RDS-F
By: Frullo H.B. No. 3545
A BILL TO BE ENTITLED
AN ACT
relating to the applicability of certain insurance laws to certain
farm mutual insurance companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 221.001(b), Insurance Code, is amended
to read as follows:
(b) This chapter does not apply to:
(1) a fraternal benefit society, including a fraternal
benefit society operating under Chapter 885;
(2) a group hospital service corporation operating
under Chapter 842;
(3) a stipulated premium company operating under
Chapter 884;
(4) a mutual assessment association, company, or
corporation regulated under Chapter 887;
(5) a purely cooperative or mutual fire insurance
company carried on by its members solely for the protection of their
own property and not for profit, except as provided by Section
221.002(b)(13); or
(6) a farm mutual insurance company operating under
Chapter 911, unless the company:
(A) insures property in more than five counties
in this state;
(B) has gross annual premium receipts greater
than $50 million;
(C) is a member of an insurance group that
includes insurance companies writing lines of insurance other than
those a farm mutual insurance company is authorized to write under
Section 911.151; or
(D) is acting as a fronting insurer.
SECTION 2. Section 252.005, Insurance Code, is amended to
read as follows:
Sec. 252.005. EXCEPTION. This chapter does not apply to:
(1) a farm mutual insurance company operating under
Chapter 911, unless the company:
(A) insures property in more than five counties
in this state;
(B) has gross annual premium receipts greater
than $50 million;
(C) is a member of an insurance group that
includes insurance companies writing lines of insurance other than
those a farm mutual insurance company is authorized to write under
Section 911.151; or
(D) is acting as a fronting insurer as defined by
Section 221.001(c); or
(2) a mutual insurance company engaged in business
under Chapter 12, Title 78, Revised Statutes, before that chapter's
repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st
Called Session, 1929, as amended by Section 1, Chapter 60, General
Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that
retains the rights and privileges under the repealed law to the
extent provided by those sections.
SECTION 3. Section 2210.006(b), Insurance Code, is amended
to read as follows:
(b) This chapter does not apply to:
(1) a farm mutual insurance company operating under
Chapter 911, unless the company:
(A) insures property in more than five counties
in this state;
(B) has gross annual premium receipts greater
than $50 million;
(C) is a member of an insurance group that
includes insurance companies writing lines of insurance other than
those a farm mutual insurance company is authorized to write under
Section 911.151; or
(D) is acting as a fronting insurer, as defined
by Section 221.001(c);
(2) a nonaffiliated county mutual fire insurance
company described by Section 912.310 that is writing exclusively
industrial fire insurance policies as described by Section
912.310(a)(2); or
(3) a mutual insurance company or a statewide mutual
assessment company engaged in business under Chapter 12 or 13,
Title 78, Revised Statutes, respectively, before those chapters'
repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st
Called Session, 1929, as amended by Section 1, Chapter 60, General
Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that
retains the rights and privileges under the repealed law to the
extent provided by those sections.
SECTION 4. (a) Sections 221.001(b) and 252.005, Insurance
Code, as amended by this Act, do not affect tax liability accruing
before the effective date of this Act. That liability continues in
effect as if this Act had not been enacted, and the former law is
continued in effect for the collection of taxes due and for civil
and criminal enforcement of the liability for those taxes.
(b) Section 2210.006(b), Insurance Code, as amended by this
Act, applies only to participation in the Texas Windstorm Insurance
Association on or after the effective date of this Act, including
the payment of assessments the liability for which accrues on or
after that date. Participation in the Texas Windstorm Insurance
Association before the effective date of this Act, including the
payment of assessments the liability for which accrued before that
date, is governed by the law as it existed immediately before that
date, and that law is continued in effect for that purpose.
SECTION 5. This Act takes effect January 1, 2022.