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.