1-1  By:  Harris                                            S.B. No. 391
    1-2        (In the Senate - Filed January 31, 1995; February 2, 1995,
    1-3  read first time and referred to Committee on Economic Development;
    1-4  March 21, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 11, Nays 0; March 21, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 391                   By:  Harris
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to recovery from certain insureds of payments made by the
   1-11  Texas Property and Casualty Insurance Guaranty Association.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Subsection (b), Section 11, Article 21.28-C,
   1-14  Insurance Code, is amended to read as follows:
   1-15        (b)  The association is entitled to recover from the
   1-16  following persons the amount of any covered claim paid on behalf of
   1-17  that person under this Act:
   1-18              (1)  any insured, other than an insured who is exempt
   1-19  from federal income tax under Section 501(a) of the Internal
   1-20  Revenue Code of 1986 (26 U.S.C. Section 501(a)) by being described
   1-21  by Section 501(c)(3) of that code, whose net worth on December 31
   1-22  of the year next preceding the date the insurer becomes an impaired
   1-23  insurer exceeds $50 million and whose liability obligations to
   1-24  other persons under a policy or contract of insurance written,
   1-25  issued, and placed in force after January 1, 1992, are satisfied in
   1-26  whole or in part by payments made under this Act; and
   1-27              (2)  any person who is an affiliate of the impaired
   1-28  insurer and whose liability obligations to other persons are
   1-29  satisfied in whole or in part by payments made under this Act.
   1-30        SECTION 2.  The change in law made by this Act does not apply
   1-31  to a recovery under Section 11, Article 21.28-C, Insurance Code,
   1-32  that has been reduced to a final judgment before the effective date
   1-33  of this Act.
   1-34        SECTION 3.  The importance of this legislation and the
   1-35  crowded condition of the calendars in both houses create an
   1-36  emergency and an imperative public necessity that the
   1-37  constitutional rule requiring bills to be read on three several
   1-38  days in each house be suspended, and this rule is hereby suspended,
   1-39  and that this Act take effect and be in force from and after its
   1-40  passage, and it is so enacted.
   1-41                               * * * * *