By Turner of Coleman H.B. No. 2389
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the 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 a new Section 4, to read as follows:
1-7 Sec. 1. Except as provided in this Article, the [The]
1-8 following Articles of this Code: Article 1.14, Article 1.15,
1-9 Article 1.16, Article 1.19, Article 1.24, Article 1.32, Article
1-10 3.10, Article 3.13, Article 3.39, Article 3.40, Article 3.61,
1-11 Article 3.63, Article 3.67, Article 21.07-7, Article 21.21, Article
1-12 21.25, Article 21.26, Article 21.28, Article 21.32, Article 21.39,
1-13 Article 21.45, and Article 21.47, shall apply to and govern
1-14 stipulated premium companies and each company shall comply with the
1-15 provisions thereof.
1-16 Sec. 4. A stipulated premium insurance company issuing life,
1-17 health, or accident coverages or maintaining policies in force that
1-18 were issued in accordance with Article 22.23A of this code may
1-19 elect that its investments and transactions be governed by Article
1-20 3.33 of this code. The election shall be made by written notice to
1-21 the commissioner and shall be effective on the first day of the
1-22 calendar quarter following the day on which the notice is filed
2-1 with the commissioner. After the second anniversary of the
2-2 effective date of an initial election authorized by this section,
2-3 the stipulated premium insurance company may elect that its
2-4 investments and transactions be governed by Article 3.39 of this
2-5 code. The subsequent election shall be made by written notice to
2-6 the commissioner and shall be effective on the first day of the
2-7 calendar quarter following the day on which the notice is filed
2-8 with the commissioner. In the event of a subsequent election, no
2-9 further election by the stipulated premium insurance company may be
2-10 made under the authority of this section.
2-11 SECTION 2. Section 1, Article 3.33, Insurance Code, is
2-12 amended to read as follows:
2-13 Sec. 1. This article and the rules promulgated to interpret
2-14 and implement it shall apply to all domestic companies as defined
2-15 in Section 5 of Article 3.01 of this code and other insurers
2-16 specifically made subject to the provisions hereof, including a
2-17 stipulated premium insurance company electing to be governed by
2-18 this Article in accordance with Section 4 of Article 22.18 of this
2-19 code. Articles 3.39, 3.40, and 3.40-1 of this code shall not be
2-20 applicable to such companies, but such articles shall continue to
2-21 be applicable to insurance companies chartered under Chapters 9,
2-22 10, 12, 13, 14, and 22 of this code, except as otherwise
2-23 specifically provided in such chapters. This article shall not
2-24 limit or restrict the investments in or transactions with or within
2-25 subsidiaries and affiliates which are made pursuant to the
2-26 authority of the Texas Insurance Holding Company System Regulatory
3-1 Act (Article 21.49-1, Insurance Code).
3-2 SECTION 3. This Act shall be effective September 1, 2001.