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 * * * * *