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78R961 DLF-D

By:  Burnam                                                       H.B. No. 122



A BILL TO BE ENTITLED

AN ACT

relating to the withdrawal of certain insurers from the insurance 
market.   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsections (a)(1) and (3), Article 21.49-2C, 
Insurance Code, are amended to read as follows:
	(a)(1)  An [authorized] insurer shall file with the 
commissioner a plan for orderly withdrawal if the insurer proposes 
to withdraw from writing a line of insurance in this state or to 
reduce its total annual premium volume by 75 percent or more or 
proposes, in a personal line of motor vehicle comprehensive or 
residential property insurance, to reduce its total annual premium 
volume in a rating territory by 50 percent or more.  The insurer's 
plan shall be constructed to protect the interests of the people of 
this state and shall indicate the date it intends to begin and 
complete its withdrawal plan and must contain provisions for:
			(A)  meeting the insurer's contractual 
obligations;                        
			(B)  providing service to its Texas policyholders 
and claimants;  and      
			(C)  meeting any applicable statutory 
obligations, such as the payment of assessments to the guaranty 
fund and participation in any assigned risk plans or joint 
underwriting arrangements.
		(3)  In this article:                                                  
			(A)  "Insurer" means any insurer authorized to 
engage in business in this state, including a county mutual 
insurance company, farm mutual insurance company, Lloyd's plan, or 
reciprocal or interinsurance exchange.
			(B)  "Rating territory" means a rating territory 
established by the department [Texas Department of Insurance].
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.