Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Burnam H.B. No. 3536
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to regulating Lloyds Plan Underwriters, County Mutuals,
1-3 and reciprocal or interinsurance exchanges.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 17.22, Insurance Code, is amended to read
1-6 as follows:
1-7 County mutual companies shall [be exempt from] comply with
1-8 the operation of all insurance laws of this state. [, except such
1-9 laws are made applicable by their specific terms or as in this
1-10 chapter specifically provided. In addition to such other Articles
1-11 as may be made to apply by other Articles of this Code, county
1-12 mutual insurance companies shall be subject to all the provisions
1-13 of Article 1.01(c), and of Subdivision 7 of Article 1.10 and of
1-14 Article 1.21 and of Article 2.01 and of Article 2.05 and of Article
1-15 2.08 and of Article 2.10 and of ARticle 5.12 and of Article 5.37
1-16 and of Article 5.38 and of Article 5.39 and of Article 5.40 and of
1-17 Article 5.10 and of Article 21.21 and of Article 21.28B and of
1-18 Article 21.49 of this Code, and the p(rovisions of Article 7064 of
1-19 the Revised Civil Statutes of Texas, 1.925.]
1-20 SECTION 2. Article 18.23, Insurance Code, is amended to read
1-21 as follows:
1-22 Underwriters at a Lloyds' shall [be exempt from] comply with
1-23 the operation of all insurance laws of this state. [except as in
1-24 this Chapter specifically provided, or unless it is specifically so
2-1 provided in such other law]]L. [ In addition to such Articles as may be
2-2 made to apply by other Articles of this Chapter, under writers at a
2-3 Lloyds' shall not be exempt from and shall be subject to all of the
2-4 provisions of Article 2.20 and of Article 5.35 and of Article 5.36
2-5 and of Article 5.38 and of Article 5.39 and of Article 5.10 and of
2-6 Article 5.19 of this Code.]
2-7 SECTION 3. Add new Article 5.101 Sec. 6.
2-8 Sec. 6. Application of Flex Rating to County Mutual
2-9 Insurers. (a) This article also applies to county mutual
2-10 insurance companies, Lloyd's plan companies, and reciprocal or
2-11 interinsurance exchanges.
2-12 (b) As part of the benchmark rate hearing process, the
2-13 commissioner shall establish separate benchmark rates for county
2-14 mutual insurers than the benchmark rates for other insurers. In
2-15 setting the county mutual benchmark rates, the commissioner shall
2-16 consider the experience of county mutual insurers only, in addition
2-17 to the considerations of section 3(c) of this article.
2-18 (c) County mutual insurers are subject to the rate and
2-19 manual filing requirements of section 3 of this article, except
2-20 that county mutual insurers may utilize multiple rating tiers, or
2-21 rating programs, within one company. The county mutual insurer
2-22 shall make a separate rate filing for each rating tier, or rating
2-23 program.
2-24 SECTION 4. This Act takes effect September 1, 1997.
2-25 SECTION 5. The importance of this legislation and the
2-26 crowded condition of the calendars in both houses create an
2-27 emergency and an imperative public necessity that the
2-28 constitutional rule requiring bills to be read on three several
2-29 days in each house be suspended, and this rule is hereby suspended.