1-1 By: Wise (Senate Sponsor - Cain) H.B. No. 2193
1-2 (In the Senate - Received from the House April 21, 1997;
1-3 April 23, 1997, read first time and referred to Committee on
1-4 Economic Development; April 30, 1997, reported favorably by the
1-5 following vote: Yeas 11, Nays 0; April 30, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the trust fund requirement for alien surplus lines
1-9 insurers.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 8(d), Article 1.14-2, Insurance Code, is
1-12 amended to read as follows:
1-13 (d) In addition to meeting the minimum capital and surplus
1-14 requirements provided by this section, an alien insurer must
1-15 provide evidence that it maintains in the United States an
1-16 irrevocable trust fund in a Federal Reserve System member bank in
1-17 an amount not less than $5.4 [$1.5] million for the protection of
1-18 all its policyholders in the United States and that the trust fund
1-19 consists of cash, securities, letters of credit, or investments of
1-20 substantially the same character and quality as those that are
1-21 eligible investments for the capital and statutory reserves of
1-22 authorized insurers licensed to write like kinds and classes of
1-23 insurance in this state.
1-24 SECTION 2. This Act takes effect September 1, 1997.
1-25 SECTION 3. This Act applies only to surplus lines insurance
1-26 placed with an insurer on or after September 1, 1997. Surplus
1-27 lines insurance placed with an insurer before September 1, 1997, is
1-28 governed by the law as it existed immediately before the effective
1-29 date of this Act and that law is continued in effect for that
1-30 purpose.
1-31 SECTION 4. The importance of this legislation and the
1-32 crowded condition of the calendars in both houses create an
1-33 emergency and an imperative public necessity that the
1-34 constitutional rule requiring bills to be read on three several
1-35 days in each house be suspended, and this rule is hereby suspended.
1-36 * * * * *