1-1 AN ACT 1-2 relating to risk limitations for certain insurance companies. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 1(a), Article 21.72, Insurance Code, is 1-5 amended to read as follows: 1-6 (a) An insurance company incorporated under the laws of this 1-7 state, another state, or the United States and authorized to do 1-8 business in this state may not expose itself to any loss or hazard 1-9 on any one risk in an amount that exceeds 10 percent of the 1-10 company's surplus as regards policyholders unless the excess is 1-11 reinsured by the company in another solvent insurer. 1-12 SECTION 2. This Act takes effect September 1, 1997. 1-13 SECTION 3. The importance of this legislation and the 1-14 crowded condition of the calendars in both houses create an 1-15 emergency and an imperative public necessity that the 1-16 constitutional rule requiring bills to be read on three several 1-17 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1977 was passed by the House on April 18, 1997, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 1977 was passed by the Senate on May 15, 1997, by the following vote: Yeas 31, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor