SRC-AAA H.B. 1976 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1976
By: Smithee (Sibley)
Economic Development
5-5-97
Engrossed


DIGEST 

Currently, under the Insurance Code most insurance companies are subject
to risk-based capital requirements. Non-stock property and casualty
insurers, primarily mutuals and reciprocals, are exempt from Texas'
risk-based capital requirements.  This bill limits the exemption for
risk-based capital requirements to property and casualty insurers who are
domiciled and write business in Texas. 

PURPOSE

As proposed, H.B. 1976 limits the exemption for risk-based capital
requirements to property and casualty insurers who are domiciled and write
business in Texas. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subsection (f), Article 2.20, Insurance Code, to provide
that for insurers that write business only in this state and that are not
required by law to have capital stock, the minimum free surplus or
guaranty fund and free surplus required will be a certain amount. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Makes application of this Act prospective to January 1, 1998.

SECTION 4. Emergency clause.