SRC-AAA H.B. 2193 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2193
By: Wise (Cain)
Economic Development
4-28-97
Engrossed


DIGEST 

Currently, the Insurance Code requires an alien surplus lines insurer to
maintain a trust fund in an amount not less than $1.5 million to protect
policyholders in the event of an insolvency.  Texas' current requirement
is one of the lowest in the nation.  H.B. 2193 requires an alien insurer
to provide evidence that it maintains in the United States an irrevocable
trust fund in a federal reserve system member bank in an amount not less
than $5.4 million. 

PURPOSE

As proposed, H.B. 2193 requires an alien surplus lines insurer to provide
evidence that it maintains in the United States an irrevocable trust fund
in a federal reserve system member bank in an amount not less than $5.4
million. 

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 Section 8(d), Article 1.14-2, Insurance Code, to require
an alien surplus lines insurer to provide evidence that it maintains in
the United States an irrevocable trust fund in a federal reserve system
member bank in an amount not less than $5.4 million, rather than $1.5
million. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Makes application of this Act prospective.

SECTION 4. Emergency clause.