Enrolled Bill Summary

House Bill 2711 amends the Insurance Code to prohibit a person in charge of handling or investing funds for a domestic insurance company from depositing those funds except in the corporate name of the company, or in a pooling account with one or more affiliates, or in accordance with a reinsurance agreement. If such funds are deposited in a pooling account, the act provides that only the domestic company and its affiliate may hold funds in the account, and the act requires that accounting and operational records be adequately detailed to identify specific insurance policies and policyholders with premium funds received by the company issuing the insurance. In addition, the act requires a reinsurance agreement between a domestic company and one or more affiliates to provide specific authorization for the deposit of premium funds to the account of the affiliate that is assuming the reinsurance.