1-1     By:  Sibley                                           S.B. No. 1896

 1-2           (In the Senate - Filed March 18, 1997; March 25, 1997, read

 1-3     first time and referred to Committee on Economic Development;

 1-4     April 4, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 9, Nays 0; April 4, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1896                  By:  Sibley

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to reciprocal regulation of insurance companies.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is

1-13     amended by adding Article 21.46A to read as follows:

1-14           Art. 21.46A.  RECIPROCAL REGULATION

1-15           Sec. 1.  DEFINITIONS.  In this article:

1-16                 (1)  "Insurance regulatory official" means the

1-17     insurance department, commissioner, director, or similar official

1-18     of another state.

1-19                 (2)  "Regulatory requirement or sanction" means any

1-20     regulatory requirement or other obligation of any kind imposed on

1-21     an insurance company as a condition of doing business in a state,

1-22     including a:

1-23                       (A)  sanction;

1-24                       (B)  fine;

1-25                       (C)  penalty;

1-26                       (D)  financial or deposit requirement;

1-27                       (E)  prohibition; or

1-28                       (F)  restriction.

1-29                 (3)  "State" includes a territory of the United States.

1-30           Sec. 2.  REPORTING REQUIREMENTS.  The department may not

1-31     accept an annual statement or other reporting document of an

1-32     insurance company domiciled in another state to satisfy a condition

1-33     of doing business in this state if the insurance regulatory

1-34     official of the other state does not accept:

1-35                 (1)  an annual statement or other reporting document

1-36     that is in compliance with the law of this state of a company

1-37     domiciled in this state; or

1-38                 (2)  any exemption from a requirement of submitting an

1-39     annual statement or other reporting document applicable under the

1-40     law of this state to a company domiciled in this state.

1-41           Sec. 3.  RECIPROCITY.  The department shall impose a

1-42     regulatory requirement or sanction on a company from another state

1-43     as a condition of doing business in this state if the insurance

1-44     regulatory official of the other state imposes, as a condition of

1-45     doing business in the other state, that regulatory requirement or

1-46     sanction on an insurance company that is domiciled in this state

1-47     and that is in compliance with the law and rules of this state.

1-48           SECTION 2.  The importance of this legislation and the

1-49     crowded condition of the calendars in both houses create an

1-50     emergency and an imperative public necessity that the

1-51     constitutional rule requiring bills to be read on three several

1-52     days in each house be suspended, and this rule is hereby suspended,

1-53     and that this Act take effect and be in force from and after its

1-54     passage, and it is so enacted.

1-55                                  * * * * *