SRC-SLL S.B. 1896 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1896
By: Sibley
Economic Development
3-27-97
As Filed


DIGEST 

Currently, out-of-state life, health, and accident companies are required
to file an annual statement and articles of incorporation and meet capital
stock, surplus, and deposit requirements before doing business in Texas.
Recently, some states have attempted to force Texas companies to make
special deposits and refused to recognize the companies' annual
statements.  This bill will require the Texas Department of Insurance to
impose a regulatory requirement or sanction on an out-of-state company if
another state imposes the same regulatory requirement or sanction on a
Texas company. 

PURPOSE

As proposed, S.B. 1896 requires the Texas Department of Insurance to
impose a regulatory requirement or sanction on an out-of-state company if
another state imposes the same regulatory requirement or sanction on a
Texas company. 

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 Chapter 3B, Insurance Code, by adding Article 3.27-5, as
follows: 

Art.  3.27-5.  RECIPROCAL REGULATION

Sec.  1.  DEFINITIONS.   Defines "insurance regulatory official,"
"regulatory requirement or sanction," and "state." 

Sec.  2.  REPORTING REQUIREMENTS.  Prohibits the Texas Department of
Insurance (department) from accepting an annual statement or other
reporting document of an insurance company domiciled in another state to
satisfy a condition of doing business in this state if the insurance
regulatory official of the other state does not accept certain items. 

Sec.  3.  RECIPROCITY.  Requires the department to impose a regulatory
requirement or sanction on a company from another state as a condition of
doing business in this state if the insurance regulatory official of the
other state imposes, as a condition of doing business in that other state,
that regulatory requirement or sanction on an insurance company that is
domiciled in this state and that is in compliance with the law and rules
of this state. 

SECTION 2. Emergency clause.
  Effective date: upon passage.