By: Eiland (Senate Sponsor - Armbrister) H.B. No. 928
(In the Senate - Received from the House April 14, 2003;
April 15, 2003, read first time and referred to Committee on State
Affairs; May 19, 2003, reported favorably by the following vote:
Yeas 7, Nays 0; May 19, 2003, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the authorized investments and transactions of certain
stipulated premium insurance companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter G, Chapter 884, Insurance Code, as
effective June 1, 2003, is amended by adding Section 884.311 to read
as follows:
Sec. 884.311. LAW GOVERNING INVESTMENTS; ELECTION. (a) A
stipulated premium insurance company issuing life, health, or
accident coverages or maintaining policies in force that were
issued in accordance with Subchapter I may elect that the company's
investments and transactions be governed by Article 3.33 of this
code.
(b) The election under Subsection (a) must be made by
written notice to the commissioner and is effective on the first day
of the calendar quarter following the day on which the notice is
filed with the commissioner.
(c) After the second anniversary of the effective date of an
initial election authorized by this section, the stipulated premium
insurance company may elect that the company's investments and
transactions be governed by Article 3.39 of this code.
(d) The subsequent election under Subsection (c) must be
made by written notice to the commissioner and is effective on the
first day of the calendar quarter following the day on which the
notice is filed with the commissioner.
(e) After a stipulated premium insurance company has made a
subsequent election under Subsection (c), the company may make
another election under this section, subject to the approval of the
election by the commissioner.
SECTION 2. Section 1, Article 3.33, Insurance Code, is
amended to read as follows:
Sec. 1. SCOPE. This article and the rules promulgated to
interpret and implement it shall apply to all domestic insurance
companies as defined in Section 841.001 [5 of Article 3.01] of this
code and other insurers specifically made subject to the provisions
hereof, including a stipulated premium insurance company electing
to be governed by this article under Section 884.311 of this code.
Articles 3.39, 3.40, and 3.40-1 of this code shall not be applicable
to such companies, but such articles shall continue to be
applicable to insurance companies chartered under Chapters 9, 881
[10], 884 [12], 885 [13], 886 [14], and 887 [22] of this code,
except as otherwise specifically provided in those chapters. This
article shall not limit or restrict the investments in or
transactions with or within subsidiaries and affiliates which are
made pursuant to the authority of the Texas Insurance Holding
Company System Regulatory Act (Chapter 823, Insurance Code)
[(Article 21.49-1, Insurance Code)].
SECTION 3. This Act takes effect September 1, 2003.
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