Amend SB 277 on third reading as follows:
      Add a new SECTION 2 to read as follows and renumber the
subsequent sections appropriately.
      SECTION 2. Section 142.009, Property Code, is amended to read
as follows:
      Sec. 142.009. Annuity Contract Requirements for Structured
Settlement
      (a) <An annuity contract that funds a structured settlement as
provided by Section 142.008 must be provided by an insurance
company that is not:>
            <(1) an affiliate, as that term is defined by Article
21.49-1, Insurance Code, of a liability insurance carrier involved
in the suit for which the structured settlement is created; or>
            <(2) connected in any way to a person obligated to fund
the structured settlement.>
      <(b)> An insurance company providing an annuity contract for a
structured settlement as provided by Section 142.008 must:
            (1) be licensed to write annuity contracts in this
state;
            (2) have a minimum of $1 million of capital and
surplus; and
            (3) be approved by the court and comply with any
requirements imposed by the court to ensure funding to satisfy
periodic settlement payments.
      (b) In approving an insurance company under Sub-section
(<b>)(a)(3), the court may consider whether the company:
            (1) holds an industry rating equivalent to at least two
of the following rating organizations:
                  (A) A.M. Best Company: A++ or A+ ;
                  (B) Duff & Phelps Credit Rating Company Insurance
                  Company Claims Paying Ability Rating; AA-, AA,
                  AA+, or AAA;
                  (C) Moody's Investors Service Claims Paying
                  Ability Rating; Aa3, Aa2, Aa1, or aaa; or
                  (D) Standard & Poor's Corporation Insurer
                  Claims-Paying Ability Rating; AA-, AA,
                  AA+, or AAA;
            (2) is an affiliate, as that term is defined by Article
21.49-1, Insurance Code, of a liability insurance carrier involved
in the suit for which the structured settlement is created: or
            (3) is connected in any way to a person obligated to
fund the structured settlement.