1-1 By: Cain S.B. No. 1565
1-2 (In the Senate - Filed March 14, 1997; March 20, 1997, read
1-3 first time and referred to Committee on Economic Development;
1-4 April 18, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 1; April 18, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1565 By: Cain
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the qualifications and compensation of persons
1-11 performing examinations of insurance organizations.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Article 1.04A, Insurance Code, is amended to read
1-14 as follows:
1-15 Art. 1.04A. Salaried Examiners. (a) In making examinations
1-16 of any insurance organization as provided by law, the department
1-17 shall only [may] use its own salaried examiners or [may use] the
1-18 services of persons having (i) knowledge of this code, the Texas
1-19 Administrative Code, and departmental procedural guidelines, rules,
1-20 and regulations; (ii) knowledge of association examination
1-21 procedures; (iii) the credentials of a certified financial examiner
1-22 as granted by the Society of Financial Examiners; (iv) extensive
1-23 experiences as the examiner-in-charge of association examinations;
1-24 (v) ability to supervise and train examination staff members of the
1-25 department; (vi) at least 10 years of examination experience as an
1-26 employee of the department; and (vii) Texas examination experience
1-27 within the preceding five years [or firms qualified to perform such
1-28 examinations or assist in the performance of such examinations].
1-29 Such examination shall cover the period of time that the department
1-30 requests. In the event the department does not specify a longer
1-31 period of time, such examination shall be from the time of the last
1-32 examination theretofore made by the department to December 31st of
1-33 the year preceding the examination then being made. All fees paid
1-34 to those persons [or firms] whose services are used shall be in
1-35 accordance with the provisions of this article [paid at the usual
1-36 and customary rates charged for the performance of those services,
1-37 subject to the right of the Commissioner to disapprove for payment
1-38 any fees that are excessive in relation to the services actually
1-39 performed].
1-40 (b) Compensation for the contract examiners will be
1-41 calculated as 120 percent of the step 4, salary group 21, annual
1-42 amount from the position classification salary schedule and
1-43 converted to a daily rate. No salary charge shall be made for days
1-44 on which examiners are absent due to sickness or any other cause,
1-45 provided the company is open for the normal transaction of
1-46 business. If the examiner is available for work on site on any
1-47 national holiday or any other day that the company has optionally
1-48 closed for business, the examiner shall be allowed salary and per
1-49 diem allowances for that particular day. Meals and lodging
1-50 expenses for examinations performed outside of a 50-mile radius of
1-51 the examiner's official domicile will be reimbursed on a basis not
1-52 to exceed rates published in the geographical expense reimbursement
1-53 plan (GERP). No per diem meals and lodging reimbursement will be
1-54 allowed for examinations performed within a 50-mile radius of the
1-55 examiner's official domicile. Examiners are authorized to return
1-56 to their official domicile every other weekend. Expenses will be
1-57 paid based on the lesser of airfare or mileage. This reimbursement
1-58 is made in lieu of the per diem allowance. Mileage reimbursement
1-59 will be paid according to the rules of reimbursement in effect for
1-60 department examiners. Payments under this subsection [Such
1-61 payment] shall be made by the insurance organization being examined
1-62 and all such examination fees so paid shall be allowed as a credit
1-63 on the amount of premium or other taxes to be paid by any such
1-64 insurance organization for the taxable year during which
2-1 examination fees are paid just as examination fees are credited
2-2 when the department uses its own salaried examiners.
2-3 SECTION 2. If any provision of this Act or its application
2-4 to any person or circumstance is held invalid, the invalidity does
2-5 not affect other provisions or applications of this Act that can be
2-6 given effect without the invalid provision or application, and to
2-7 this end the provisions of this Act are declared to be severable.
2-8 SECTION 3. Any rule adopted by the Commissioner of Insurance
2-9 which is not in comformity with the standards set forth in Section
2-10 1 of this Act shall be null and void and of no force or effect.
2-11 SECTION 4. If any provision of this Act is in conflict with
2-12 any other law, rule, regulation, or provision of the Insurance
2-13 Code, this Act shall control.
2-14 SECTION 5. The importance of this legislation and the
2-15 crowded condition of the calendars in both houses create an
2-16 emergency and an imperative public necessity that the
2-17 constitutional rule requiring bills to be read on three several
2-18 days in each house be suspended, and this rule is hereby suspended,
2-19 and that this Act take effect and be in force from and after its
2-20 passage, and it is so enacted.
2-21 * * * * *