By Smithee                                      H.B. No. 1977

      75R5692 SAW-F                           

                                A BILL TO BE ENTITLED

 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.