By: Cain S.B. No. 1565
97S0813/1
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 examiners will be calculated as 120
2-9 percent of the step 4, salary group 21, annual amount from the
2-10 position classification salary schedule and converted to a daily
2-11 rate. No salary charge shall be made for days on which examiners
2-12 are absent due to sickness or any other cause, provided the company
2-13 is open for the normal transaction of business. If the examiner is
2-14 available for work on site on any national holiday or any other day
2-15 that the company has optionally closed for business, the examiner
2-16 shall be allowed salary and per diem allowances for that particular
2-17 day. Meals and lodging expenses for examinations performed outside
2-18 of a 50-mile radius of the examiner's official domicile will be
2-19 reimbursed on a basis not to exceed rates published in the
2-20 geographical expense reimbursement plan (GERP). No per diem meals
2-21 and lodging reimbursement will be allowed for examinations
2-22 performed within a 50-mile radius of the examiner's official
2-23 domicile. Examiners are authorized to return to their official
2-24 domicile every other weekend. Expenses will be paid based on the
2-25 lesser of airfare or mileage. This reimbursement is made in lieu
3-1 of the per diem allowance. Mileage reimbursement will be paid
3-2 according to the rules of reimbursement in effect for department
3-3 examiners. Payments under this subsection [Such payment] shall be
3-4 made by the insurance organization being examined and all such
3-5 examination fees so paid shall be allowed as a credit on the amount
3-6 of premium or other taxes to be paid by any such insurance
3-7 organization for the taxable year during which examination fees are
3-8 paid just as examination fees are credited when the department uses
3-9 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 to the standards set forth in Section 1
3-17 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.