By Wise H.B. No. 2193
75R5691 SAW-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the trust fund requirement for alien surplus lines
1-3 insurers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 8(d), Article 1.14-2, Insurance Code, is
1-6 amended to read as follows:
1-7 (d) In addition to meeting the minimum capital and surplus
1-8 requirements provided by this section, an alien insurer must
1-9 provide evidence that it maintains in the United States an
1-10 irrevocable trust fund in a Federal Reserve System member bank in
1-11 an amount not less than $5.4 [$1.5] million for the protection of
1-12 all its policyholders in the United States and that the trust fund
1-13 consists of cash, securities, letters of credit, or investments of
1-14 substantially the same character and quality as those that are
1-15 eligible investments for the capital and statutory reserves of
1-16 authorized insurers licensed to write like kinds and classes of
1-17 insurance in this state.
1-18 SECTION 2. This Act takes effect September 1, 1997.
1-19 SECTION 3. This Act applies only to surplus lines insurance
1-20 placed with an insurer on or after September 1, 1997. Surplus
1-21 lines insurance placed with an insurer before September 1, 1997, is
1-22 governed by the law as it existed immediately before the effective
1-23 date of this Act and that law is continued in effect for that
1-24 purpose.
2-1 SECTION 4. The importance of this legislation and the
2-2 crowded condition of the calendars in both houses create an
2-3 emergency and an imperative public necessity that the
2-4 constitutional rule requiring bills to be read on three several
2-5 days in each house be suspended, and this rule is hereby suspended.