H.B. No. 1243
1-1 AN ACT
1-2 relating to requirements for certain insurers and health
1-3 maintenance organizations concerning financial solvency.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 1.39, Insurance Code, is amended by
1-6 amending Subsection (b) and adding Subsections (e) and (f) to read
1-7 as follows:
1-8 (b) An insurer may obtain a loan or an advance of cash, cash
1-9 equivalents, or other assets that have a readily determinable value
1-10 and are satisfactory to the commissioner <or property>, repayable
1-11 with interest, and may assume a subordinated liability for
1-12 repayment of the advance and payment of interest on the advance if
1-13 the insurer and creditor execute a written agreement stating that
1-14 the creditor may be paid only out of that portion of the insurer's
1-15 surplus that exceeds the greater of a minimum surplus stated and
1-16 fixed in the agreement or a minimum surplus of $500,000 for that
1-17 insurer. The department or the commissioner may not require the
1-18 agreement to provide another minimum surplus amount.
1-19 (e) An agreement entered into under Subsection (b) of this
1-20 article must be submitted to the commissioner for approval as to
1-21 form and content; provided, however, that the commissioner must
1-22 give his decision of either approval or disapproval within 30 days
1-23 after the written filing by the insurer, and his failure to so act
1-24 within such 30 days shall constitute approval of the transaction.
2-1 An insurer may not assume a subordinated liability until the
2-2 commissioner has approved the agreement under either Section 4,
2-3 Article 21.49-1, or this article. An insurer may not repay
2-4 principal or pay interest on a subordinated liability assumed under
2-5 either Section 4, Article 21.49-1, or this article on or after
2-6 September 1, 1995, unless either (i) such payment or repayment
2-7 complies with a specific schedule of payments contained within the
2-8 terms of the previously approved agreement, or (ii) written notice
2-9 is provided to the commissioner at least 15 days before the date
2-10 scheduled for any payment or repayment if either a schedule of
2-11 payments is not contained within the terms of the previously
2-12 approved agreement, or such payment or repayment does not comply
2-13 with the specific schedule of payments contained within the terms
2-14 of the previously approved agreement. A loan, debenture, revenue
2-15 bond, or advance agreement issued before September 1, 1995, and any
2-16 subsequent payment of interest or repayment of principal are
2-17 governed by the law in effect on the date of issuance.
2-18 (f) The commissioner shall adopt rules as necessary to
2-19 implement this article.
2-20 SECTION 2. Article 3.10(l), Insurance Code, is amended to
2-21 read as follows:
2-22 (l) An insurer shall account for reinsurance agreements and
2-23 shall record those reinsurance agreements in the insurer's
2-24 financial statement in a manner that accurately reflects the effect
2-25 of the reinsurance agreements on the financial condition of the
2-26 company. The State Board of Insurance may adopt reasonable rules
2-27 relating to the accounting and financial statement requirements of
3-1 this section and the treatment of reinsurance agreements between
3-2 insurance companies, including minimum risk transfer standards,
3-3 asset debits or credits, reinsurance debits or credits, and reserve
3-4 debits or credits relating to the transfer of all or any part of an
3-5 insurer's risks or liabilities by reinsurance agreements and any
3-6 contingencies arising from reinsurance agreements. Rules adopted
3-7 subsequent to September 1, 1995, shall apply to reinsurance
3-8 agreements entered into on or after the effective date of such
3-9 rules, and to reinsurance agreements that are amended on or after
3-10 the effective date of such rules. A reinsurance agreement may
3-11 contain a provision that allows the offset of mutual debts and
3-12 credits between a ceding insurer and the assuming insurer, whether
3-13 arising out of one or more reinsurance agreements.
3-14 SECTION 3. Subchapter B, Chapter 3, Insurance Code, is
3-15 amended by adding Article 3.27-4 to read as follows:
3-16 Art. 3.27-4. APPLICATION OF CERTAIN SOLVENCY REQUIREMENTS.
3-17 Articles 3.02 and 21.49-8 of this code apply to an insurance
3-18 company subject to this subchapter.
3-19 SECTION 4. Article 5.75-1(n), Insurance Code, is amended to
3-20 read as follows:
3-21 (n) An insurer shall account for reinsurance agreements and
3-22 shall record those agreements in the insurer's financial statements
3-23 in a manner that accurately reflects the effect of the reinsurance
3-24 agreements on the financial condition of the insurer. The State
3-25 Board of Insurance may adopt reasonable rules relating to the
3-26 accounting and financial statement requirements of this subsection
3-27 and the treatment of reinsurance agreements between insurers,
4-1 including minimum risk transfer standards, asset debits or credits,
4-2 reinsurance debits or credits, and reserve debits or credits
4-3 relating to the transfer of all or any part of an insurer's risks
4-4 or liabilities by reinsurance agreements and to any contingencies
4-5 arising from reinsurance agreements. Reinsurance agreements may
4-6 contain a provision allowing the offset of mutual debts and credits
4-7 between the ceding insurer and the assuming insurer whether arising
4-8 out of one or more reinsurance agreements.
4-9 SECTION 5. Section 2, Article 9.47, Insurance Code, is
4-10 amended to read as follows:
4-11 Sec. 2. Regardless of Section 1 of this Article, where
4-12 applicable to title insurance companies, Article 1.01 through 1.25;
4-13 Article 2.01; Article 2.02, Sections 1, 2 and 3; Article 2.03,
4-14 except Section 5; Article 2.04; Article 2.05; Article 2.06; Article
4-15 3.01, Section 10(a), (b) and (c); Article 3.12, except Section (c);
4-16 Article 3.13; <Article 3.14;> Article 21.21; Article 21.21-1;
4-17 Article 21.25; Article 21.26; Article 21.31; Article 21.36; Article
4-18 21.37; Article 21.43; Article 21.46; <and> Article 21.47; Article
4-19 21.49-8; and Subchapter F of Chapter 5 of this code shall apply to
4-20 and govern title insurance companies where applicable thereto. In
4-21 case of conflict between provisions of any of the foregoing
4-22 articles and the provisions of this Chapter Nine, the latter shall
4-23 govern.
4-24 SECTION 6. Section 16.24(b), Insurance Code, is amended to
4-25 read as follows:
4-26 (b) Regardless of the preceding portion of this Article,
4-27 Articles 1.01, 1.02, 1.04, <1.08,> 1.09, 1.09-1, 1.11, 1.12, 1.13,
5-1 1.14, 1.15, 1.15A, 1.16, 1.17, 1.18, 1.19, 1.20, 1.21, 1.22, 1.23,
5-2 1.24, 1.29, 2.08, 2.10, 3.12, 3.13, 6.16, 21.21, 21.25, 21.28,
5-3 21.28-A, <21.28-B,> 21.28-C, 21.39, 21.39-A, and Sections 10(a),
5-4 (b) and (c) of Article 3.01 and Sections 1, 2, 5, 6, 7, 8, 9, 10,
5-5 11, 13, 14 and 17 of Article 1.10 of this code <the Insurance Code
5-6 as they now exist or shall hereafter be amended> shall apply to and
5-7 govern farm mutual insurance companies except where such Articles
5-8 or portions thereof are in conflict with the provisions of Chapter
5-9 16 of the Insurance Code.
5-10 SECTION 7. Section 17.22(a), Insurance Code, is amended to
5-11 read as follows:
5-12 (a) County mutual insurance companies shall be exempt from
5-13 the operation of all insurance laws of this state, except such laws
5-14 as are made applicable by their specific terms or as in this
5-15 Chapter specifically provided. In addition to such other Articles
5-16 as may be made to apply by other Articles of this Code, county
5-17 mutual insurance companies shall be subject to:
5-18 (1) <all the provisions of Article 1.04(e), and of>
5-19 Subdivision 7 of Article 1.10 of this Code;
5-20 (2) Articles <and of Article> 1.15A, <and of Article>
5-21 1.24, <and of Article> 2.04, <and of Article> 2.05, <and of
5-22 Article> 2.08, <and of Article> 2.10, <and of Article> 5.12, <a
5-23 of Article> 5.37, <and of Article> 5.38, <and of Article> 5.39,
5-24 <and of Article> 5.40, <and of Article> 5.49, <and of Article>
5-25 21.21, and <of Article 21.28B and of Article> 21.49 of this
5-26 Code;<,> and
5-27 (3) <the provisions of> Article 7064, <of the> Revised
6-1 <Civil> Statutes <of Texas, 1925>.
6-2 SECTION 8. Section 18.23(b), Insurance Code, is amended to
6-3 read as follows:
6-4 (b) In addition to such Articles as may be made to apply by
6-5 other Articles of this Chapter, underwriters at a Lloyds' shall not
6-6 be exempt from and shall be subject to Articles <all of the
6-7 provisions of Article> 1.15A, <and of Article> 2.20, <and of
6-8 Article> 5.35, <and of Article> 5.38, <and of Article> 5.39, <
6-9 of Article> 5.40, <and of Article> 5.49, <and of Article> 21.21,
6-10 and 21.49-8 of this Code.
6-11 SECTION 9. Section 19.12(b), Insurance Code, is amended to
6-12 read as follows:
6-13 (b) In addition to such Articles as may be made to apply by
6-14 other Articles of this Code, reciprocal or inter-insurance
6-15 exchanges shall not be exempt from and shall be subject to:
6-16 (1) <all of the provisions of> Section 5, <of> Article
6-17 1.10 of this Code; and
6-18 (2) Articles <of Article> 1.15, <and of Article>
6-19 1.15A, <and of Article> 1.16, 2.20, <and of Article> 5.35, <and ofª
6-20 Article 5.36 and of Article> 5.37, <and of Article> 5.38, <and of
6-21 Article> 5.39, <and of Article> 5.40, <and of Article> 6.12, <a
6-22 of Article> 8.07, <and of Article> 21.21, and 21.49-8 of this Code.
6-23 SECTION 10. Section 26(i), Texas Health Maintenance
6-24 Organization Act (Article 20A.26, Vernon's Texas Insurance Code),
6-25 is amended to read as follows:
6-26 (i) Any health maintenance organization authorized under
6-27 this Act shall be subject to:
7-1 (1) Article 21.49-8, Insurance Code; and
7-2 (2) Article 3.51-6, Section 3B, Insurance Code.
7-3 SECTION 11. Article 21.44, Insurance Code, is amended to
7-4 read as follows:
7-5 Art. 21.44. CAPITAL AND SURPLUS REQUIREMENTS FOR FOREIGN OR
7-6 ALIEN INSURANCE COMPANIES OTHER THAN LIFE. (a) No foreign or
7-7 alien insurance company subject to the provisions of Article 21.43
7-8 of this code shall be permitted to do business within this State
7-9 unless it shall have and maintain the minimum requirements of this
7-10 Code as to capital or surplus or both, applicable to companies
7-11 organized under this Code doing the same kind or kinds of business.
7-12 (b) Articles 2.20 and 21.49-8 of this code apply to an
7-13 insurance company subject to this article.
7-14 SECTION 12. Section 4(c), Article 21.49-1, Insurance Code,
7-15 is amended to read as follows:
7-16 (c) Dividends and Other Distributions. (1) No insurer
7-17 subject to registration under Section 3 shall pay any extraordinary
7-18 dividend or make any other extraordinary distribution to its
7-19 shareholders until (i) 30 days after the commissioner has received
7-20 notice of the declaration thereof and has not within such period
7-21 disapproved such payment, or (ii) the commissioner shall have
7-22 approved such payment within such 30-day period.
7-23 (2) For purposes of this section an extraordinary
7-24 dividend or distribution includes any dividend or distribution of
7-25 cash or other property, whose fair market value together with that
7-26 of other dividends or distributions made within the preceding 12
7-27 months exceeds the greater of (i) 10 percent (20 percent if such
8-1 insurer is a title insurer) of such insurer's surplus as regards
8-2 policyholders as of the 31st day of December next preceding, or
8-3 (ii) the net gain from operations of such insurer, if such insurer
8-4 is a life or title insurer, or the net <investment> income, if such
8-5 insurer is not a life or title insurer, for the 12-month period
8-6 ending the 31st day of December next preceding, but shall not
8-7 include pro rata distributions of any class of the insurer's own
8-8 securities.
8-9 (3) Notwithstanding any other provision of law, an
8-10 insurer may declare an extraordinary dividend or distribution which
8-11 is conditional upon the commissioner's approval thereof, and such a
8-12 declaration shall confer no rights upon shareholders until (i) the
8-13 commissioner has approved the payment of such dividend or
8-14 distribution or (ii) the commissioner has not disapproved such
8-15 payment within the 30-day period referred to above.
8-16 SECTION 13. Subchapter E, Chapter 21, Insurance Code, is
8-17 amended by adding Article 21.49-8 to read as follows:
8-18 Art. 21.49-8. DISCLOSURE OF MATERIAL TRANSACTIONS REPORT
8-19 Sec. 1. APPLICATION; EXEMPTION. (a) Except as provided by
8-20 Subsection (b) of this section, this article applies to the
8-21 following domestic insurers and commercially domiciled insurers:
8-22 (1) a capital stock company;
8-23 (2) a mutual company;
8-24 (3) a title insurance company;
8-25 (4) a fraternal benefit society;
8-26 (5) a Lloyd's plan company;
8-27 (6) a reciprocal or interinsurance exchange;
9-1 (7) a group hospital service corporation;
9-2 (8) a health maintenance organization;
9-3 (9) a risk retention group;
9-4 (10) a nonprofit legal service corporation; and
9-5 (11) a nonprofit hospital, medical, or dental service
9-6 corporation.
9-7 (b) A domestic insurer listed under Subsection (a) of this
9-8 section that does business only in this state is exempt from the
9-9 application of this article until the insurer obtains authority to
9-10 conduct the business of insurance in another state.
9-11 Sec. 2. REPORT. (a) Unless the material acquisition and
9-12 disposition of assets and the nonrenewal, cancellation, or
9-13 revisions of material ceded reinsurance agreements have been
9-14 submitted to the commissioner for review, approval, or information
9-15 under other provisions of this code or other laws, regulations, or
9-16 requirements, each insurer shall file a report with the
9-17 commissioner that discloses:
9-18 (1) material acquisitions and dispositions of assets;
9-19 or
9-20 (2) material nonrenewals, cancellations, or revisions
9-21 of ceded reinsurance agreements.
9-22 (b) The report required under Subsection (a) of this section
9-23 must be filed not later than the 15th day after the last day of the
9-24 calendar month in which any of the affected transactions occur.
9-25 (c) The insurer also shall file one complete copy of the
9-26 report, including any necessary exhibits or other attachments, with
9-27 the department.
10-1 (d) A report obtained by or disclosed to the commissioner
10-2 under this article is confidential and is not subject to a
10-3 subpoena, other than a grand jury subpoena. The report may not be
10-4 disclosed by the commissioner, the National Association of
10-5 Insurance Commissioners, or any other person, except to the
10-6 insurance department of another state or another authorized
10-7 governmental agency, without the prior written consent of the
10-8 affected insurer, unless the commissioner, after notice to the
10-9 affected insurer and an opportunity for a hearing, determines that
10-10 the interest of policyholders, shareholders, or the public will be
10-11 served by the publication of the report. If the commissioner does
10-12 so determine, the department may disclose a report to the public
10-13 and may publish all or any part of the report in any manner
10-14 considered appropriate by the commissioner.
10-15 Sec. 3. ACQUISITIONS AND DISPOSITIONS OF ASSETS. (a) An
10-16 insurer is not required to report an acquisition or disposition of
10-17 assets under Section 2 of this article if the acquisition or
10-18 disposition is not material. For purposes of this article, an
10-19 acquisition, or the aggregate of a series of related acquisitions
10-20 during a 30-day period, or a disposition, or the aggregate of a
10-21 series of related dispositions during a 30-day period, is material
10-22 if it:
10-23 (1) is not recurring;
10-24 (2) is not in the ordinary course of business; and
10-25 (3) involves more than five percent of the reporting
10-26 insurer's total admitted assets as reported in its most recent
10-27 statutory statement filed with the department.
11-1 (b) An asset acquisition subject to this article includes
11-2 each purchase, lease, exchange, merger, consolidation, succession,
11-3 or other acquisition, other than the construction or development of
11-4 real property by or for the reporting insurer or the acquisition of
11-5 materials for that purpose.
11-6 (c) An asset disposition subject to this article includes
11-7 each sale, lease, exchange, merger, consolidation, mortgage,
11-8 hypothecation, assignment, whether for the benefit of creditors or
11-9 otherwise, abandonment, destruction, or other disposition.
11-10 (d) The following information must be disclosed in a report
11-11 of a material acquisition or disposition of assets:
11-12 (1) the date of the transaction;
11-13 (2) the manner of acquisition or disposition;
11-14 (3) a description of the assets involved;
11-15 (4) the nature and amount of the consideration given
11-16 or received;
11-17 (5) the purpose of or reason for the transaction;
11-18 (6) the manner by which the amount of consideration
11-19 was determined;
11-20 (7) the gain or loss recognized or realized as a
11-21 result of the transaction; and
11-22 (8) the name of each person from whom the assets were
11-23 acquired or to whom they were disposed.
11-24 (e) An insurer shall report material acquisitions and
11-25 dispositions on a nonconsolidated basis unless the insurer:
11-26 (1) is part of a consolidated group of insurers that
11-27 uses a pooling arrangement or a 100 percent reinsurance agreement
12-1 that affects the solvency and integrity of the insurer's reserves;
12-2 and
12-3 (2) ceded substantially all of its direct and assumed
12-4 business to the pooling arrangement.
12-5 (f) For purposes of Subsection (e), an insurer is considered
12-6 to have ceded substantially all of its direct and assumed business
12-7 to a pooling arrangement if:
12-8 (1) the insurer has, during a calendar year, less than
12-9 $1 million total direct and assumed written premiums that are not
12-10 subject to a pooling arrangement; and
12-11 (2) the net income of the business not subject to the
12-12 pooling arrangement represents less than five percent of the
12-13 insurer's capital and surplus.
12-14 Sec. 4. NONRENEWALS, CANCELLATIONS, OR REVISIONS OF CEDED
12-15 INSURANCE. (a) An insurer is not required to report a nonrenewal,
12-16 cancellation, or revision of a ceded reinsurance agreement under
12-17 Section 2 of this article if the nonrenewal, cancellation, or
12-18 revision is not material. For purposes of this article, a
12-19 nonrenewal, cancellation, or revision is material if it affects, on
12-20 an annual basis, as indicated in the insurer's most recently filed
12-21 statutory statement:
12-22 (1) for property and casualty business, including
12-23 accident and health business when written as property and casualty
12-24 business, more than 50 percent of an insurer's ceded written
12-25 premium; or
12-26 (2) for life, annuity, and accident and health
12-27 business, more than 50 percent of the total reserve credit taken
13-1 for business ceded.
13-2 (b) An insurer is not required to report if the insurer's
13-3 ceded written premium of the total reserve credit taken for
13-4 business ceded represents, on an annual basis, less than:
13-5 (1) 10 percent of direct and assumed written premiums;
13-6 or
13-7 (2) 10 percent of the statutory reserve requirement
13-8 before a cession.
13-9 (c) Subject to the requirements imposed under Subsections
13-10 (a) and (b) of this section, an insurer shall file a report without
13-11 regard to which party initiated the nonrenewal, cancellation, or
13-12 revision of ceded reinsurance when one or more of the following
13-13 conditions exist:
13-14 (1) the entire cession has been canceled, nonrenewed,
13-15 or revised, and ceded indemnity and loss adjustment expense
13-16 reserves after the nonrenewal, cancellation, or revision represent
13-17 less than 50 percent of the comparable reserves that would have
13-18 been ceded had the nonrenewal, cancellation, or revision not
13-19 occurred;
13-20 (2) an authorized or accredited reinsurer has been
13-21 replaced on an existing cession by an unauthorized reinsurer; or
13-22 (3) collateral requirements previously established for
13-23 unauthorized reinsurers have been reduced in that the requirement
13-24 to collateralize incurred but not reported claim reserves has been
13-25 waived for one or more unauthorized reinsurers newly participating
13-26 in an existing cession.
13-27 (d) Subject to the requirement of materiality, for purposes
14-1 of Subsections (c)(2) and (3) of this section, an insurer shall
14-2 file a report if the result of the revision affects more than 10
14-3 percent of the cession.
14-4 (e) An insurer shall disclose the following information in a
14-5 report of a material nonrenewal, cancellation, or revision of a
14-6 ceded reinsurance agreement:
14-7 (1) the effective date of the nonrenewal,
14-8 cancellation, or revision;
14-9 (2) a description of the transaction that identifies
14-10 the initiator of the transaction;
14-11 (3) the purpose of or reason for the transaction; and
14-12 (4) if applicable, the identity of the replacement
14-13 reinsurers.
14-14 (f) An insurer shall report all material nonrenewals,
14-15 cancellations, or revisions of ceded reinsurance agreements on a
14-16 nonconsolidated basis unless the insurer:
14-17 (1) is part of a consolidated group of insurers that
14-18 uses a pooling arrangement or 100 percent reinsurance agreement
14-19 that affects the solvency and integrity of the insurer's reserves;
14-20 and
14-21 (2) ceded substantially all of its direct and assumed
14-22 business to the pooling arrangement.
14-23 (g) For purposes of Subsection (f) of this section, an
14-24 insurer is considered to have ceded substantially all of its direct
14-25 and assumed business to a pooling arrangement if:
14-26 (1) the insurer has, during a calendar year, less than
14-27 $1 million total direct and assumed written premiums that are not
15-1 subject to the pooling arrangement; and
15-2 (2) the net income of the business not subject to the
15-3 pooling arrangement represents less than five percent of the
15-4 insurer's capital and surplus.
15-5 SECTION 14. Subchapter E, Chapter 21, Insurance Code, is
15-6 amended by adding Article 21.72 to read as follows:
15-7 Art. 21.72. GENERAL REINSURANCE REQUIREMENTS
15-8 Sec. 1. (a) An insurance company incorporated under the laws
15-9 of another state or the United States and authorized to do business
15-10 in this state may not expose itself to any loss or hazard on any
15-11 one risk in an amount that exceeds 10 percent of the company's
15-12 surplus as regards policyholders unless the excess is reinsured by
15-13 the company in another solvent insurer.
15-14 (b) An insurance company incorporated under a jurisdiction
15-15 other than that of this state, another state, or the United States
15-16 and authorized to do business in this state may not expose itself
15-17 to any loss or hazard on any one risk in an amount that exceeds 10
15-18 percent of the company's deposit with the statutory officer in the
15-19 state through which the company gains admission to the United
15-20 States, together with 10 percent of the other surplus to
15-21 policyholders of the company's United States branch, unless the
15-22 excess is reinsured by the company in another solvent insurer.
15-23 Sec. 2. An insurance or reinsurance company authorized to
15-24 transact insurance or reinsurance in this state may reinsure the
15-25 whole or any part of an individual risk in another solvent insurer.
15-26 Sec. 3. This article does not apply to:
15-27 (1) life insurance;
16-1 (2) health insurance;
16-2 (3) annuity contracts;
16-3 (4) title insurance;
16-4 (5) workers' compensation insurance;
16-5 (6) employers' liability insurance coverage; or
16-6 (7) any policy or type of coverage as to which the
16-7 maximum possible loss to the insurer is not readily ascertainable
16-8 on issuance of the policy.
16-9 Sec. 4. Any reinsurance required or permitted by this
16-10 article must comply with Article 5.75-1 of this code.
16-11 SECTION 15. Section 1, Article 22.18, Insurance Code, is
16-12 amended to read as follows:
16-13 Sec. 1. The following Articles of this Code<, to
16-14 wit>: Article 1.14, Article 1.15, Article 1.15A, Article 1.16,
16-15 Article 1.19, Article 1.24, Article 1.32, Article 3.10, Article
16-16 3.13, Article 3.39, Article 3.40, Article 3.61, <Article 3.62,>
16-17 Article 3.63, Article 3.67, Article 21.07-7, Article 21.21, Article
16-18 21.25, Article 21.26, Article 21.28, Article 21.32, Article 21.39,
16-19 Article 21.45, and Article 21.47, shall apply to and govern
16-20 stipulated premium companies and each company shall comply with the
16-21 provisions thereof.
16-22 SECTION 16. Section 23.26(b), Insurance Code, is amended to
16-23 read as follows:
16-24 (b) The following provisions of the Insurance Code as they
16-25 now exist or shall hereafter be amended shall, where not in
16-26 conflict with this chapter, apply to corporations complying with
16-27 the provisions of this chapter to the same extent as they apply to
17-1 insurers and to those doing the business of insurance: Articles
17-2 1.01, 1.02, 1.04, <1.08,> 1.09, 1.09-1, 1.11, 1.12, 1.13, 1.14,
17-3 1.15, 1.15A, 1.16, 1.17, 1.18, 1.19, 1.20, 1.21, 1.22, 1.23, 1.24,
17-4 1.25, 1.29, 3.12, 3.13, <3.14,> 21.21, 21.21-2, 21.25, 21.28,
17-5 21.28-A, <21.28A, and> 21.47, 21.49-8 and Sections 1, 2, 6, 8, 9,
17-6 10, 11, 12, 13, 14, and 17 of Article 1.10 of this code <the
17-7 Insurance Code, as amended>.
17-8 SECTION 17. Article 25.05, Insurance Code, is amended to
17-9 read as follows:
17-10 Art. 25.05. Other Laws to Govern. Chapter <Chapters> 2,
17-11 including Article 2.20, Chapter <and> 8, and Article 4.10 of this
17-12 code, and all other provisions of the Insurance Code, if not in
17-13 conflict with this chapter, shall apply to and govern any insurance
17-14 carrier operating under this chapter. In addition, Article 21.49-8
17-15 of this code applies to each insurance carrier operating under this
17-16 chapter.
17-17 SECTION 18. (a) This Act takes effect September 1, 1995.
17-18 (b) The commissioner of insurance shall adopt rules as
17-19 required by the Insurance Code, as amended by this Act, not later
17-20 than December 31, 1995.
17-21 (c) Article 21.49-8, Insurance Code, as added by this Act,
17-22 takes effect only on certification by the commissioner of insurance
17-23 that the National Association of Insurance Commissioners has
17-24 provided to the commissioner in writing a total budgetary
17-25 disclosure as to the use by that association of funds received by
17-26 that association from states that are members of the association.
17-27 The commissioner shall issue a finding regarding the certification
18-1 and shall publish the finding in the Texas Register.
18-2 SECTION 19. The importance of this legislation and the
18-3 crowded condition of the calendars in both houses create an
18-4 emergency and an imperative public necessity that the
18-5 constitutional rule requiring bills to be read on three several
18-6 days in each house be suspended, and this rule is hereby suspended.