By: Cain S.B. No. 1565
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the qualifications and compensation of persons
1-2 performing examinations of insurance organizations.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Article 1.04A, Insurance Code, is amended to read
1-5 as follows:
1-6 Art. 1.04A. Salaried Examiners. (a) In making examinations
1-7 of any insurance organization as provided by law, the department
1-8 shall only [may] use its own salaried examiners or [may use] the
1-9 services of persons having (i) knowledge of this code, the Texas
1-10 Administrative Code, and departmental procedural guidelines, rules,
1-11 and regulations; (ii) knowledge of association examination
1-12 procedures; (iii) the credentials of a certified financial examiner
1-13 as granted by the Society of Financial Examiners; (iv) extensive
1-14 experiences as the examiner-in-charge of association examinations;
1-15 (v) ability to supervise and train examination staff members of the
1-16 department; (vi) at least 10 years of examination experience as an
1-17 employee of the department; and (vii) Texas examination experience
1-18 within the preceding five years [or firms qualified to perform such
1-19 examinations or assist in the performance of such examinations].
1-20 Such examination shall cover the period of time that the department
1-21 requests. In the event the department does not specify a longer
1-22 period of time, such examination shall be from the time of the last
1-23 examination theretofore made by the department to December 31st of
2-1 the year preceding the examination then being made. All fees paid
2-2 to those persons [or firms] whose services are used shall be in
2-3 accordance with the provisions of this article [paid at the usual
2-4 and customary rates charged for the performance of those services,
2-5 subject to the right of the Commissioner to disapprove for payment
2-6 any fees that are excessive in relation to the services actually
2-7 performed].
2-8 (b) Compensation for the contract examiners will be
2-9 calculated as 120 percent of the step 4, salary group 21, annual
2-10 amount from the position classification salary schedule and
2-11 converted to a daily rate. No salary charge shall be made for days
2-12 on which examiners are absent due to sickness or any other cause,
2-13 provided the company is open for the normal transaction of
2-14 business. If the examiner is available for work on-site on any
2-15 national holiday or any other day that the company has optionally
2-16 closed for business, the examiner shall be allowed salary and per
2-17 diem allowances for that particular day. Meals and lodging
2-18 expenses for examinations performed outside of a 50-mile radius of
2-19 the examiner's official domicile will be reimbursed on a basis not
2-20 to exceed rates published in the geographical expense reimbursement
2-21 plan (GERP). No per diem meals and lodging reimbursement will be
2-22 allowed for examinations performed within a 50-mile radius of the
2-23 examiner's official domicile. Examiners are authorized to return
2-24 to their official domicile every other weekend. Expenses will be
2-25 paid based on the lesser of airfare or mileage. This reimbursement
3-1 is made in lieu of the per diem allowance. Mileage reimbursement
3-2 will be paid according to the rules of reimbursement in effect for
3-3 department examiners. Payments under this subsection [Such
3-4 payment] shall be made by the insurance organization being examined
3-5 and all such examination fees so paid shall be allowed as a credit
3-6 on the amount of premium or other taxes to be paid by any such
3-7 insurance organization for the taxable year during which
3-8 examination fees are paid just as examination fees are credited
3-9 when the department uses its own salaried examiners.
3-10 SECTION 2. If any provision of this Act or its application
3-11 to any person or circumstance is held invalid, the invalidity does
3-12 not affect other provisions or applications of this Act that can be
3-13 given effect without the invalid provision or application, and to
3-14 this end the provisions of this Act are declared to be severable.
3-15 SECTION 3. Any rule adopted by the Commissioner of Insurance
3-16 which is not in conformity with the standards set forth in Section
3-17 1 of this Act shall be null and void and of no force or effect.
3-18 SECTION 4. If any provision of this Act is in conflict with
3-19 any other law, rule, regulation, or provision of the Insurance
3-20 Code, this Act shall control.
3-21 SECTION 5. The importance of this legislation and the
3-22 crowded condition of the calendars in both houses create an
3-23 emergency and an imperative public necessity that the
3-24 constitutional rule requiring bills to be read on three several
3-25 days in each house be suspended, and this rule is hereby suspended,
4-1 and that this Act take effect and be in force from and after its
4-2 passage, and it is so enacted.