Bill not drafted by TLC or Senate E&E. Line and page numbers may not match official copy. By Dutton H.B. No. 2024 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to permitting policyholder dividends for multiple lines of 1-3 insurance. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Amend Chapter 5, Insurance Code, by adding 1-6 Article 5.41-2 to read as follows: 1-7 Article 5.41-2. Multiple Line Dividends. 1-8 Sec. 1. An insurer may pay to a commercial policyholder or 1-9 group of commercial policyholders a dividend which covers more than 1-10 one class or line of commercial business. This dividend may only 1-11 be paid to the policyholder or group of policyholders after 1-12 adequate loss reserves are established on an aggregate basis for 1-13 the classes or lines of commercial insurance included within the 1-14 dividend, and the insurer must have sufficient surplus from which 1-15 to pay the dividend. An insurer shall file a notice of its intent 1-16 to pay such dividend with the Department at least fifteen days 1-17 prior to the payment thereof. 1-18 Sec. 2. Limitation of the payment of a dividend on one or 1-19 more classes or lines of commercial business to a group of 1-20 commercial policyholders, shall not be unfair discrimination, so 1-21 long as the group has clearly identifiable underwriting 1-22 characteristics or is an association or group of business entities 1-23 engaged in similar undertakings. 1-24 Sec. 3. The classes or lines of commercial business for 2-1 which such dividends are authorized include any or all of the 2-2 commercial classes or lines of commercial business regulated by 2-3 this Chapter 5. 2-4 SECTION 2. The importance of this legislation and the 2-5 crowded condition of the calendars in both houses create an 2-6 emergency and an imperative public necessity that the 2-7 constitutional rule requiring bills to be read on three several 2-8 days in each house be suspended, and this rule is hereby suspended.