77R8701 DLF-F
By Turner of Coleman H.B. No. 2389
Substitute the following for H.B. No. 2389:
By Burnam C.S.H.B. No. 2389
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to authorized investments and transactions of certain
1-3 stipulated premium insurance companies.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 22.18, Insurance Code, is amended by
1-6 amending Section 1 and adding Section 4 to read as follows:
1-7 Sec. 1. (a) Except as provided by this Article, the [The]
1-8 following laws shall apply to and govern stipulated premium
1-9 insurance companies [Articles of this Code]:
1-10 (1) Article 1.14, Article 1.15, Article 1.15A, Article
1-11 1.16, Article 1.19, [Article 1.24,] Article 1.32, Article 3.10,
1-12 Article 3.13, Article 3.39, Article 3.40, Article 3.61, Article
1-13 3.63, Article 3.67, Article 21.07-7, Article 21.21, Article 21.25,
1-14 Article 21.26, Article 21.28, Article 21.32, Article 21.39, Article
1-15 21.45, and Article 21.47 of this code; and
1-16 (2) Section 38.001 of this code.
1-17 (b) Each stipulated premium insurance[, shall apply to and
1-18 govern stipulated premium companies and each] company shall comply
1-19 with the provisions of law listed in Subsection (a) of this
1-20 section [thereof].
1-21 Sec. 4. (a) A stipulated premium insurance company that
1-22 issues life, health, or accident coverages or that maintains
1-23 policies in force issued in accordance with Article 22.23A of this
1-24 code may elect that the company's investments and transactions be
2-1 governed by Article 3.33 of this code. A stipulated premium
2-2 insurance company shall make the election under this subsection by
2-3 written notice to the commissioner. The election is effective on
2-4 the first day of the calendar quarter following the date on which
2-5 the notice is filed with the commissioner.
2-6 (b) After the second anniversary of the effective date of an
2-7 initial election authorized by this section, the stipulated premium
2-8 insurance company may elect that the company's investments and
2-9 transactions be governed by Article 3.39 of this code. The
2-10 stipulated premium insurance company shall make the subsequent
2-11 election under this subsection by written notice to the
2-12 commissioner. The election is effective on the first day of the
2-13 calendar quarter following the day on which the notice is filed
2-14 with the commissioner. After a stipulated premium company has made
2-15 a subsequent election under this subsection, the company may not
2-16 make a further election under this section.
2-17 SECTION 2. Section 1, Article 3.33, Insurance Code, is
2-18 amended to read as follows:
2-19 Sec. 1. SCOPE. This article and the rules promulgated to
2-20 interpret and implement it shall apply to all domestic companies as
2-21 defined in Section 5 of Article 3.01 of this code and other
2-22 insurers specifically made subject to the provisions hereof,
2-23 including a stipulated premium insurance company electing to be
2-24 governed by this Article in accordance with Section 4, Article
2-25 22.18, of this code. Articles 3.39, 3.40, and 3.40-1 of this code
2-26 shall not be applicable to such companies, but such articles shall
2-27 continue to be applicable to insurance companies chartered under
3-1 Chapters 9, 10, 12, 13, 14, and 22 of this code, except as
3-2 specifically provided by Section 4, Article 22.18, of this code.
3-3 This article shall not limit or restrict the investments in or
3-4 transactions with or within subsidiaries and affiliates which are
3-5 made pursuant to the authority of the Texas Insurance Holding
3-6 Company System Regulatory Act (Article 21.49-1, Insurance Code).
3-7 SECTION 3. This Act takes effect September 1, 2001.