KMS H.B. 1975 75(R) BILL ANALYSIS INSURANCE H.B. 1975 By: Smithee 3-21-97 Committee Report (Unamended) BACKGROUND Under current law, insurers domiciled in Texas are subject to different laws relating to financial examinations conducted by the Texas Department of Insurance, depending upon the chapters of the Insurance Code under which they are licensed. As a result, TDI often has to examine affiliated insurers at different times, even though the insurers are common members of the same holding company groups. This is administratively burdensome for both TDI and insurers, and results in more costly examinations for certain insurance groups. PURPOSE To provide that insurers subject to TDI's examination are governed by common statutes relating to financial examinations. This will increase the efficiency of TDI's examinations by providing that affiliated insurers may be examined at common intervals. Costs to certain insurers will decrease as a result of efficiencies gained through the use of common examination intervals. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS Updates language throughout bill to reflect commissioner instead of Board of Insurance. SECTION 1. - Amends article 9.22, Insurance Code, to provide that title insurers are subject to articles 1.15 and 1.16, Insurance Code. SECTION 2. - Amends article 10.33, Insurance Code, to provide that domestic fraternal benefit societies are subject to articles 1.15 and 1.16, Insurance Code. SECTION 3. - Amends article 10.35, Insurance Code, to provide that foreign fraternal benefit societies are subject to articles 1.15 and 1.16, Insurance Code. SECTION 4. - Amends article 13.09, Insurance Code, to provide that statewide mutual assessment companies are subject to articles 1.15 and 1.16, Insurance Code. SECTION 5. - Amends article 14.16, Insurance Code, to provide that mutual assessment companies and associations are subject to articles 1.15 and 1.16, Insurance Code. SECTION 6. - Amends article 17.22(a), Insurance Code, to provide that county mutual insurance companies are subject to articles 1.15, 1.16, and 4.10 Insurance Code. SECTION 7. - Amends article 20.21, Insurance Code, to provide that group hospital service corporations are subject to articles 1.15 and 1.16, Insurance Code. SECTION 8. - Amends section 5B(a), article 21.49, Insurance Code, to provide that the Texas Catastrophe Property Insurance Association is subject to articles 1.15 and 1.16, Insurance Code. SECTION 9. - Amends section 10, article 21.49-3, Insurance Code, to provide that the Texas Medical Liability Insurance Underwriting Association is subject to articles 1.15 and 1.16, Insurance Code. SECTION 10. - Repeals article 17.18 and section 5B(c), article 21.49, Insurance Code. SECTION 11. - Act takes effect on September 1, 1997. SECTION 12. - Emergency Clause.