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.

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