By:  Lucio                                   S.B. No. 1076

         97S0729/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to prohibited activities of officers, directors, and

 1-2     certain shareholders of insurance companies.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 2, Article 1.29, Insurance Code, is

 1-5     amended to read as follows:

 1-6           Sec. 2.  (a)  The provisions of this Article are applicable

 1-7     to all insurance companies subject to regulation by the Insurance

 1-8     Code and any provision of exemption or any provision of

 1-9     inapplicability or applicability limiting such regulation in any

1-10     chapter of the Code are not in limitation of the provisions of this

1-11     Article, and, except as provided by Subsection (b) of this Section,

1-12     in the event of conflict between this Article and any other article

1-13     of the Code or in the event of any ambiguity the provisions of this

1-14     Article shall govern.

1-15           (b)  To the extent of any conflict between this Article and

1-16     Article 21.49-1 of this code, Article 21.49-1 controls.

1-17           SECTION 2.  If any provision of this Act or its application

1-18     to any person or circumstance is held invalid, the invalidity does

1-19     not affect other provisions or applications of this Act that can be

1-20     given effect without the invalid provision or application, and to

1-21     this end the provisions of this Act are declared to be severable.

1-22           SECTION 3.  Any rule adopted by the commissioner of insurance

1-23     which is not in conformity to the standards set forth in Section 1

 2-1     of this Act shall be null and void and of no force or effect.

 2-2           SECTION 4.  If this Act is in conflict with any other law,

 2-3     rule, regulation, or provision of the Insurance Code, this Act

 2-4     shall control.

 2-5           SECTION 5.  The importance of this legislation and the

 2-6     crowded condition of the calendars in both houses create an

 2-7     emergency and an imperative public necessity that the

 2-8     constitutional rule requiring bills to be read on three several

 2-9     days in each house be suspended, and this rule is hereby suspended,

2-10     and that this Act take effect and be in force from and after its

2-11     passage, and it is so enacted.