1-1     By:  Smithee (Senate Sponsor - Sibley)                H.B. No. 2830
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Business
 1-4     and Commerce; May 10, 2001, reported favorably by the following
 1-5     vote:  Yeas 6, Nays 0; May 10, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to unauthorized insurance.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1. Section 101.001, Insurance Code, is amended by
1-11     adding Subsection (d) to read as follows:
1-12           (d)  It is also a concern that this state not become a safe
1-13     harbor for persons or insurers engaged in the unauthorized business
1-14     of insurance in this state, regardless of whether the insureds or
1-15     other persons affected by the unauthorized business of insurance
1-16     are residents of this state.
1-17           SECTION 2. Section 101.051, Insurance Code, is amended by
1-18     adding Subsection (c) to read as follows:
1-19           (c)  An act described by Subsection (b) by an unlicensed or
1-20     unauthorized person or insurer that occurs in this state and that
1-21     affects a person in another state or jurisdiction constitutes the
1-22     business of insurance in this state.
1-23           SECTION 3. (a)  The change in law made by Section 101.051(c),
1-24     Insurance Code, as added by this Act, applies only to conduct
1-25     engaged in on or after the effective date of this Act.
1-26           (b)  Conduct engaged in before the effective date of this Act
1-27     is covered by the law in effect when the conduct was engaged in,
1-28     and the former law is continued in effect for that purpose.
1-29           SECTION 4. This Act takes effect September 1, 2001.
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