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A BILL TO BE ENTITLED
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AN ACT
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relating to what constitutes the business of insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (b), Section 101.053, Insurance Code, |
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is amended to read as follows: |
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(b) Sections 101.051 and 101.052 do not apply to: |
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(1) the lawful transaction of surplus lines insurance |
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under Chapter 981; |
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(2) the lawful transaction of reinsurance by insurers; |
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(3) a transaction in this state that: |
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(A) involves a policy that: |
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(i) is lawfully solicited, written, and |
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delivered outside this state; and |
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(ii) covers, at the time the policy is |
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issued, only subjects of insurance that are not resident, located, |
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or expressly to be performed in this state; and |
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(B) takes place after the policy is issued; |
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(4) a transaction: |
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(A) that involves an insurance contract |
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independently procured by the insured from an insurance company not |
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authorized to do insurance business in this state through |
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negotiations occurring entirely outside this state; |
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(B) that is reported; and |
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(C) on which premium tax is paid in accordance |
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with Chapter 226; |
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(5) a transaction in this state that: |
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(A) involves group life, health, or accident |
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insurance, other than credit insurance, and group annuities in |
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which the master policy for the group was lawfully issued and |
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delivered in a state in which the insurer or person was authorized |
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to do insurance business; and |
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(B) is authorized by a statute of this state; |
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(6) an activity in this state by or on the sole behalf |
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of a nonadmitted captive insurance company that insures solely: |
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(A) directors' and officers' liability insurance |
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for the directors and officers of the company's parent and |
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affiliated companies; |
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(B) the risks of the company's parent and |
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affiliated companies; or |
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(C) both the individuals and entities described |
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by Paragraphs (A) and (B); |
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(7) the issuance of a qualified charitable gift |
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annuity under Chapter 102; [or] |
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(8) a lawful transaction by a servicing company of the |
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Texas workers' compensation employers' rejected risk fund under |
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Section 4.08, Article 5.76-2, as that article existed before its |
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repeal; or |
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(9) a transaction in this state between two or more |
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entities for commercial marketing or promotional purposes in which |
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a monetary risk is transferred from one or more of the entities |
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under a written contract that: |
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(A) contains a clear and conspicuous |
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acknowledgment by the parties that the contract is not an insurance |
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contract and is not protected by any state guaranty association; |
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(B) does not require any actual economic loss by |
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the party transferring the risk as a condition precedent to |
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imposing contractual liability on the party accepting the risk; and |
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(C) does not require submission of proof of |
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economic loss by the party transferring the risk as a condition |
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precedent to imposing contractual liability on the party accepting |
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the risk. |
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SECTION 2. 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. |