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A BILL TO BE ENTITLED
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relating to authorized investments in securities or property for |
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foreign companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 404.001, Insurance Code, is amended to |
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read as follows: |
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Sec. 404.001. DEFINITION. In this subchapter, "insurer" |
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includes the following, whether foreign or domestic: |
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(1) a capital stock insurance company; |
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(2) a reciprocal or interinsurance exchange; |
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(3) a Lloyd's plan; |
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(4) a fraternal benefit society; |
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(5) a mutual company, including a mutual assessment |
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company; |
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(6) a statewide mutual assessment company; |
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(7) a local mutual aid association; |
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(8) a burial association; |
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(9) a county mutual insurance company; |
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(10) a farm mutual insurance company; |
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(11) a fidelity, guaranty, or surety company; |
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(12) a title insurance company; |
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(13) a stipulated premium company; |
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(14) a group hospital service corporation; |
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(15) a health maintenance organization; |
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(16) a risk retention group; and |
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(17) any other organization or person engaged in the |
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business of insurance. |
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SECTION 2. Sections 404.003(a) and (c), Insurance Code, are |
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amended to read as follows: |
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(a) If the financial condition of an insurer, when reviewed |
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as provided by Subsection (b), indicates a condition that might |
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make the insurer's continued operation hazardous to the insurer's |
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policyholders or creditors or to the public, the commissioner may, |
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after notice and hearing, order the insurer to take action |
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reasonably necessary to remedy the condition. A hearing held under |
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this section is not subject to Chapter 40. |
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(c) In an order issued under Subsection (a), the |
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commissioner may take any action the commissioner considers |
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reasonably necessary to remedy the condition described by |
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Subsection (a), including: |
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(1) requiring an insurer to: |
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(A) reduce the total amount of present and |
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potential liability for policy benefits by reinsurance; |
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(B) reduce the volume of new business accepted; |
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(C) suspend or limit writing new business for a |
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period; |
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(D) reduce general insurance and commission |
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expenses by specified methods; [or] |
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(E) increase the insurer's capital and surplus by |
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contribution; or |
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(F) rectify an asset deficiency as a result of |
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the insurer holding an investment that is not of the same type, |
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quality, character, or class of investment authorized under this |
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code; or |
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(2) suspending or canceling the insurer's certificate |
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of authority. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |