S.B. No. 1283
relating to the application of certain laws to insurers that are
part of an insurance holding company system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 823.015, Insurance Code, is amended to
read as follows:
Sec. 823.015. EXEMPTION FROM CHAPTER. [
(a) This chapter
does not apply to an insurance holding company system if each
affiliate in the system is privately owned by not more than five
security holders, each of whom is an individual. For purposes of
this subsection, a person is a security holder of another if the
person owns any security of the other person, including common
stock, preferred stock, a debt obligation, and any other security
convertible into or evidencing the right to acquire stock or a debt
[ (b)] The commissioner may exempt from the application of
this chapter a commercially domiciled insurer that the commissioner
determines has assets physically located in this state or an
asset-to-liability ratio sufficient to justify the conclusion that
there is no reasonable danger that the operations or conduct of the
business of the insurer could present a danger of loss to the
policyholders of this state.
SECTION 2. An insurance holding company system that becomes
subject to Chapter 823, Insurance Code, as a result of the repeal of
Subsection (a), Section 823.015, Insurance Code, by Section 1 of
this Act is not required to comply with Chapter 823, Insurance Code,
until January 1, 2006.
SECTION 3. This Act takes effect September 1, 2005.
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1283 passed the Senate on
April 21, 2005, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendments on May 27, 2005, by the
following vote: Yeas 29, Nays 0.
Secretary of the Senate
I hereby certify that S.B. No. 1283 passed the House, with
amendments, on May 25, 2005, by a non-record vote.
Chief Clerk of the House