By: Sibley S.B. No. 1896 A BILL TO BE ENTITLED AN ACT 1-1 relating to reciprocal regulation of insurance companies. 1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-3 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is 1-4 amended by adding Article 21.46A to read as follows: 1-5 Art. 21.46A. RECIPROCAL REGULATION 1-6 Sec. 1. DEFINITIONS. In this article: 1-7 (1) "Insurance regulatory official" means the 1-8 insurance department, commissioner, director, or similar official 1-9 of another state. 1-10 (2) "Regulatory requirement or sanction" means any 1-11 regulatory requirement or other obligation of any kind imposed on 1-12 an insurance company as a condition of doing business in a state, 1-13 including a: 1-14 (A) sanction; 1-15 (B) fine; 1-16 (C) penalty; 1-17 (D) financial or deposit requirement; 1-18 (E) prohibition; or 1-19 (F) restriction. 1-20 (3) "State" includes a territory of the United States. 1-21 Sec. 2. REPORTING REQUIREMENTS. The department may not 1-22 accept an annual statement or other reporting document of an 1-23 insurance company domiciled in another state to satisfy a condition 2-1 of doing business in this state if the insurance regulatory 2-2 official of the other state does not accept: 2-3 (1) an annual statement or other reporting document 2-4 that is in compliance with the law of this state of a company 2-5 domiciled in this state; or 2-6 (2) any exemption from a requirement of submitting an 2-7 annual statement or other reporting document applicable under the 2-8 law of this state to a company domiciled in this state. 2-9 Sec. 3. RECIPROCITY. The department shall impose a 2-10 regulatory requirement or sanction on a company from another state 2-11 as a condition of doing business in this state if the insurance 2-12 regulatory official of the other state imposes, as a condition of 2-13 doing business in the other state, that regulatory requirement or 2-14 sanction on an insurance company that is domiciled in this state 2-15 and that is in compliance with the law and rules of this state. 2-16 SECTION 2. The importance of this legislation and the 2-17 crowded condition of the calendars in both houses create an 2-18 emergency and an imperative public necessity that the 2-19 constitutional rule requiring bills to be read on three several 2-20 days in each house be suspended, and this rule is hereby suspended, 2-21 and that this Act take effect and be in force from and after its 2-22 passage, and it is so enacted.