1-1                                   AN ACT
 1-2     relating to unauthorized insurance.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 101.001, Insurance Code, is amended by
 1-5     adding Subsection (d) to read as follows:
 1-6           (d)  It is also a concern that this state not become a safe
 1-7     harbor for persons or insurers engaged in the unauthorized business
 1-8     of insurance in this state, regardless of whether the insureds or
 1-9     other persons affected by the unauthorized business of insurance
1-10     are residents of this state.
1-11           SECTION 2. Section 101.051, Insurance Code, is amended by
1-12     adding Subsection (c) to read as follows:
1-13           (c)  An act described by Subsection (b) by an unlicensed or
1-14     unauthorized person or insurer that occurs in this state and that
1-15     affects a person in another state or jurisdiction constitutes the
1-16     business of insurance in this state.
1-17           SECTION 3. (a)  The change in law made by Section 101.051(c),
1-18     Insurance Code, as added by this Act, applies only to conduct
1-19     engaged in on or after the effective date of this Act.
1-20           (b)  Conduct engaged in before the effective date of this Act
1-21     is covered by the law in effect when the conduct was engaged in,
1-22     and the former law is continued in effect for that purpose.
1-23           SECTION 4. This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2830 was passed by the House on May
         5, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2830 was passed by the Senate on May
         22, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor