By: Schaefer H.B. No. 2752
A BILL TO BE ENTITLED
AN ACT
Relating to the effect of the amendment of certain documents
incorporated by reference into the laws or policy of this state on
the Texas Department of Insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sec. 36.004, Insurance Code, is amended by
adding subsection (c)(3) to read as follows:
Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS REQUIREMENTS; RULES. (a) Except as
provided by Subsection (c) and Section 36.005, the department may
not require an insurer to comply with a rule, regulation,
directive, or standard adopted by the National Association of
Insurance Commissioners, including a rule, regulation, directive,
or standard relating to policy reserves, unless application of the
rule, regulation, directive, or standard is expressly authorized by
statute.
(b) For purposes of Subsection (a), a version of a rule,
regulation, directive, or standard is expressly authorized by
statute if:
(1) the statute explicitly authorizes the
commissioner to adopt rules consistent with the rule, regulation,
directive, or standard; or
(2) that version is the latest version of the rule,
regulation, directive, or standard on the date that the statute was
enacted.
(c) The commissioner may adopt a rule to require compliance
with a rule, regulation, directive, or standard adopted by the
National Association of Insurance Commissioners if:
(1) the commissioner finds the rule is technical or
nonsubstantive in nature or necessary to preserve the department's
accreditation; [and]
(2) before the adoption of the rule, the commissioner
provides the standing committees of the senate and house of
representatives with primary jurisdiction over the department with
written notice of the commissioner's intent to adopt the rule[.];
and
(3) if a rule relates to environmental, social, or
governance matters, or is otherwise substantive in nature, the
commissioner shall enter into the formal rulemaking process.
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, 2023.