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A BILL TO BE ENTITLED
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AN ACT
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relating to the frequency of certain examinations conducted by the |
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Texas Department of Insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 401.052, Insurance Code, is amended to |
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read as follows: |
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Sec. 401.052. FREQUENCY OF EXAMINATION. (a) Subject to |
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Subsection (b) and except as provided by the rules adopted under |
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that subsection, the [The] department shall visit and examine a |
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carrier as frequently[:
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[(1) annually during the first three years after the
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carrier is organized or incorporated; and
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[(2) except as provided by Subsection (b), once every
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three years after the period described by Subdivision (1), or on a
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more frequent basis] as the department considers necessary. At a |
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minimum, the department shall examine a carrier not less frequently |
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than once every five years. |
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(b) [If the commissioner determines that the financial
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strength of a carrier justifies less frequent examinations than
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those required under Subsection (a)(2), the department may conduct
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the examination at intervals not less frequent than every five
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years.] The commissioner shall adopt rules governing the frequency |
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of examinations of carriers that have been organized or |
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incorporated for less than five years [determination under this
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subsection of whether the financial strength of a carrier justifies
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less frequent examinations]. |
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SECTION 2. This Act takes effect September 1, 2007. |