1-1 By: Smithee (Senate Sponsor - Sibley) H.B. No. 1977 1-2 (In the Senate - Received from the House April 21, 1997; 1-3 April 22, 1997, read first time and referred to Committee on 1-4 Economic Development; May 7, 1997, reported favorably by the 1-5 following vote: Yeas 7, Nays 0; May 7, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to risk limitations for certain insurance companies. 1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-10 SECTION 1. Section 1(a), Article 21.72, Insurance Code, is 1-11 amended to read as follows: 1-12 (a) An insurance company incorporated under the laws of this 1-13 state, another state, or the United States and authorized to do 1-14 business in this state may not expose itself to any loss or hazard 1-15 on any one risk in an amount that exceeds 10 percent of the 1-16 company's surplus as regards policyholders unless the excess is 1-17 reinsured by the company in another solvent insurer. 1-18 SECTION 2. This Act takes effect September 1, 1997. 1-19 SECTION 3. The importance of this legislation and the 1-20 crowded condition of the calendars in both houses create an 1-21 emergency and an imperative public necessity that the 1-22 constitutional rule requiring bills to be read on three several 1-23 days in each house be suspended, and this rule is hereby suspended. 1-24 * * * * *