1-1 By: Harris S.B. No. 91
1-2 (In the Senate - Filed December 11, 1998; January 26, 1999,
1-3 read first time and referred to Committee on Economic Development;
1-4 February 18, 1999, reported favorably by the following vote: Yeas
1-5 6, Nays 0; February 18, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to authorizing title auditors to audit and review escrow
1-9 and trust accounts of title insurance companies.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subsection (c), Section 14, Article 9.48,
1-12 Insurance Code, is amended to read as follows:
1-13 (c) Powers and duties of association. In addition to the
1-14 powers and duties provided by other sections of this article, the
1-15 association:
1-16 (1) may render assistance and advice to the
1-17 commissioner, on the commissioner's [upon his] request, concerning
1-18 rehabilitation, payment of claims, continuations of coverage, or
1-19 the performance of other contractual obligations of any impaired
1-20 insurer or agent;
1-21 (2) has standing to appear before any court in this
1-22 state with jurisdiction over an impaired insurer or agent
1-23 concerning which the association is or may become obligated under
1-24 this article;
1-25 (3) Each director of the association shall file a
1-26 financial statement with the Texas Ethics Commission in accordance
1-27 with Subchapter B, Chapter 572, Government Code;[.]
1-28 (4) may borrow funds as necessary to implement this
1-29 article in accordance with the plan of operation;
1-30 (5) may lend money to an impaired insurer;
1-31 (6) sue or be sued, including taking any legal actions
1-32 necessary or proper for recovery of any unpaid assessments;
1-33 (7) may enter into contracts as necessary or proper to
1-34 implement this article;
1-35 (8) may employ or retain such persons who are
1-36 necessary to handle the financial transactions of the association,
1-37 and to perform any other functions that become necessary or proper
1-38 under this article;
1-39 (9) may ensure payment of the policy obligations of an
1-40 impaired insurer;
1-41 (10) may negotiate and contract with any liquidator,
1-42 rehabilitator, conservator, receiver, or ancillary receiver to
1-43 carry out the powers and duties of the association;
1-44 (11) may guarantee, assume, or reinsure, or cause to
1-45 be guaranteed, assumed, or reinsured, a policy or contract of an
1-46 impaired insurer;
1-47 (12) may take legal action as necessary to avoid the
1-48 payment of improper claims, or to settle claims or potential claims
1-49 against the impaired insurer or association;
1-50 (13) shall, on the request of the commissioner,
1-51 authorize the expenditure of funds from the guaranty fee account to
1-52 retain, compensate, and reimburse for reasonable and necessary
1-53 expenses, a person or persons who will audit and review agent and
1-54 insurer escrow and trust accounts, financial condition, and
1-55 compliance with applicable statutes and rules and make reports
1-56 relating to the accounts, agent financial condition, and compliance
1-57 to the commissioner, solely under the direction of and as assigned
1-58 by the commissioner;
1-59 (14) shall collect, receive, retain, and disburse the
1-60 income provided by Section 6 of this article solely for the
1-61 purposes, to the persons, and under the circumstances that are
1-62 specifically stated in this article; and
1-63 (15) may perform other acts as necessary or proper to
1-64 implement this article.
2-1 SECTION 2. This Act takes effect September 1, 1999.
2-2 SECTION 3. The importance of this legislation and the
2-3 crowded condition of the calendars in both houses create an
2-4 emergency and an imperative public necessity that the
2-5 constitutional rule requiring bills to be read on three several
2-6 days in each house be suspended, and this rule is hereby suspended.
2-7 * * * * *