By Sibley                                       S.B. No. 1896

      75R4893 DLF-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to reciprocal regulation of certain life, health, or

 1-3     accident insurance companies.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter B, Chapter 3, Insurance Code, is

 1-6     amended by adding Article 3.27-5 to read as follows:

 1-7           Art. 3.27-5. RECIPROCAL REGULATION

 1-8           Sec. 1. DEFINITIONS. In this article:

 1-9                 (1)  "Insurance regulatory official" means the

1-10     insurance department, commissioner, director, or similar official

1-11     of another state.

1-12                 (2)  "Regulatory requirement or sanction" means any

1-13     regulatory requirement or other obligation of any kind imposed on

1-14     an  insurance company as a condition of doing business in a state,

1-15     including a:

1-16                       (A)  sanction;

1-17                       (B)  fine;

1-18                       (C)  penalty;

1-19                       (D)  financial or deposit requirement;

1-20                       (E)  prohibition; or

1-21                       (F)  restriction.

1-22                 (3)  "State" includes a territory of the United States.

1-23           Sec. 2.  REPORTING REQUIREMENTS.  The department may not

1-24     accept an annual statement or other reporting document of an

 2-1     insurance company domiciled in another state to satisfy a condition

 2-2     of doing business in this state if the  insurance regulatory

 2-3     official of the other state does not accept:

 2-4                 (1)  an annual statement or other reporting instrument

 2-5     that is in compliance with the law of this state of a company

 2-6     domiciled in this state; or

 2-7                 (2)  any exemption from a requirement of submitting an

 2-8     annual statement or other reporting instrument applicable under the

 2-9     law of this state to a company domiciled in this state.

2-10           Sec. 3.  RECIPROCITY.  The department shall impose a

2-11     regulatory requirement or sanction on a company from another state

2-12     as a condition of doing business in this state if the insurance

2-13     regulatory official of the other state imposes, as a condition of

2-14     doing business in that other state, that regulatory requirement or

2-15     sanction on an insurance company that is domiciled in this state

2-16     and that is in compliance with the law and rules of this state.

2-17           SECTION 2.  The importance of this legislation and the

2-18     crowded condition of the calendars in both houses create an

2-19     emergency and an imperative public necessity that the

2-20     constitutional rule requiring bills to be read on three several

2-21     days in each house be suspended, and this rule is hereby suspended,

2-22     and that this Act take effect and be in force from and after its

2-23     passage, and it is so enacted.