By Harris S.B. No. 91
76R2972 DB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to authorizing title auditors to audit and review escrow
1-3 and trust accounts of title insurance companies.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 14(c), Article 9.48, Insurance Code, is
1-6 amended to read as follows:
1-7 (c) Powers and duties of association. In addition to the
1-8 powers and duties provided by other sections of this article, the
1-9 association:
1-10 (1) may render assistance and advice to the
1-11 commissioner, on the commissioner's [upon his] request, concerning
1-12 rehabilitation, payment of claims, continuations of coverage, or
1-13 the performance of other contractual obligations of any impaired
1-14 insurer or agent;
1-15 (2) has standing to appear before any court in this
1-16 state with jurisdiction over an impaired insurer or agent
1-17 concerning which the association is or may become obligated under
1-18 this article;
1-19 (3) Each director of the association shall file a
1-20 financial statement with the Texas Ethics Commission in accordance
1-21 with Subchapter B, Chapter 572, Government Code;[.]
1-22 (4) may borrow funds as necessary to implement this
1-23 article in accordance with the plan of operation;
1-24 (5) may lend money to an impaired insurer;
2-1 (6) sue or be sued, including taking any legal actions
2-2 necessary or proper for recovery of any unpaid assessments;
2-3 (7) may enter into contracts as necessary or proper to
2-4 implement this article;
2-5 (8) may employ or retain such persons who are
2-6 necessary to handle the financial transactions of the association,
2-7 and to perform any other functions that become necessary or proper
2-8 under this article;
2-9 (9) may ensure payment of the policy obligations of an
2-10 impaired insurer;
2-11 (10) may negotiate and contract with any liquidator,
2-12 rehabilitator, conservator, receiver, or ancillary receiver to
2-13 carry out the powers and duties of the association;
2-14 (11) may guarantee, assume, or reinsure, or cause to
2-15 be guaranteed, assumed, or reinsured, a policy or contract of an
2-16 impaired insurer;
2-17 (12) may take legal action as necessary to avoid the
2-18 payment of improper claims, or to settle claims or potential claims
2-19 against the impaired insurer or association;
2-20 (13) shall, on the request of the commissioner,
2-21 authorize the expenditure of funds from the guaranty fee account to
2-22 retain, compensate, and reimburse for reasonable and necessary
2-23 expenses, a person or persons who will audit and review agent and
2-24 insurer escrow and trust accounts, financial condition, and
2-25 compliance with applicable statutes and rules and make reports
2-26 relating to the accounts, agent financial condition, and compliance
2-27 to the commissioner, solely under the direction of and as assigned
3-1 by the commissioner;
3-2 (14) shall collect, receive, retain, and disburse the
3-3 income provided by Section 6 of this article solely for the
3-4 purposes, to the persons, and under the circumstances that are
3-5 specifically stated in this article; and
3-6 (15) may perform other acts as necessary or proper to
3-7 implement this article.
3-8 SECTION 2. This Act takes effect September 1, 1999.
3-9 SECTION 3. The importance of this legislation and the
3-10 crowded condition of the calendars in both houses create an
3-11 emergency and an imperative public necessity that the
3-12 constitutional rule requiring bills to be read on three several
3-13 days in each house be suspended, and this rule is hereby suspended.