By:  Eiland (Senate Sponsor - Lucio)                              H.B. No. 2614
	(In the Senate - Received from the House April 25, 2005; 
April 26, 2005, read first time and referred to Committee on 
Business and Commerce; May 16, 2005, reported adversely, with 
favorable Committee Substitute by the following vote:  Yeas 7, 
Nays 0; May 16, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 2614                                   By:  Lucio


A BILL TO BE ENTITLED

AN ACT


relating to the applicability of certain insurance laws to Lloyd's 
plans and reciprocal and interinsurance exchanges.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 38.001(b), Insurance Code, is amended to 
read as follows:
	(b)  The department may address a reasonable inquiry to any 
[an] insurance company, including a Lloyd's plan or reciprocal or 
interinsurance exchange, or an agent[,] or other holder of an 
authorization relating to:
		(1)  the person's business condition; or                                      
		(2)  any matter connected with the person's 
transactions that the department considers necessary for the public 
good or for the proper discharge of the department's duties.
	SECTION 2.  Section 941.003(b), Insurance Code, is amended 
to read as follows:
	(b)  A Lloyd's plan is subject to:                                             
		(1)  Section 5, Article 1.10;                                                 
		(2)  Article 1.15A;                                                           
		(3)  Subchapters A, Q, T, and U, Chapter 5;                                   
		(4)  Articles 5.35, 5.38, 5.39, and 5.40[, and 5.49]; 
		(5)  Article [Articles 21.21 and] 21.49-8;            
		(6)  Sections 822.203, 822.205, 822.210, and 822.212; 
[and]
		(7)  Article 5.13-2, as provided by that article;                      
		(8)  Chapters 251, 252, and 541; and                                   
		(9)  Section 38.001.                                                   
	SECTION 3.  Section 942.003(b), Insurance Code, is amended 
to read as follows:
	(b)  An exchange is subject to:                                                
		(1)  Section 5, Article 1.10;                                                 
		(2)  Articles 1.15, 1.15A, and 1.16;                                          
		(3)  Subchapters A, Q, T, and U, Chapter 5;                                   
		(4)  Articles 5.35, 5.37, 5.38, 5.39, and 5.40;                               
		(5)  Article [Articles 21.21 and] 21.49-8;            
		(6)  Sections 822.203, 822.205, 822.210, 822.212, 
861.254(a)-(f), 861.255, 862.001(b), and 862.003; [and]
		(7)  Article 5.13-2, as provided by that article;                      
		(8)  Chapter 541; and                                                  
		(9)  Section 38.001.                                                   
	SECTION 4.  Subchapter A, Chapter 551, Insurance Code, is 
amended by adding new Section 551.004 to read as follows:
	Sec. 551.004.  TRANSFER NOT CONSIDERED A REFUSAL TO RENEW.  
For purposes of this chapter and Articles 5.06-1 and 5.06-3 of this 
code, the transfer of a policyholder between admitted companies 
within the same insurance group is not considered a refusal to 
renew.
	SECTION 5.  Section 551.056, Insurance Code, is repealed.                      
	SECTION 6.  The change in law made by Section 38.001, 
Insurance Code, as amended by this Act, applies only to an inquiry 
made by the Texas Department of Insurance on or after the effective 
date of this Act.  An inquiry made by the Texas Department of 
Insurance before the effective date of this Act is covered by the 
law in effect at the time the inquiry is made, and that law is 
continued in effect for that purpose.
	SECTION 7.  This Act takes effect September 1, 2005.                           



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