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A BILL TO BE ENTITLED
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AN ACT
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relating to the registration with the Texas Department of Insurance |
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of certain contract examiners. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 751.052, Insurance Code, is amended to |
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read as follows: |
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Sec. 751.052. COORDINATION WITH OTHER STATES; REGISTRATION |
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OF CONTRACT EXAMINER. (a) The commissioner shall coordinate the |
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department's market analysis and examination efforts with other |
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states through the National Association of Insurance |
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Commissioners. |
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(b) A person with whom another state contracts to perform |
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any market analysis or examination initiated by the other state of |
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an insurer domiciled in this state shall register with and provide |
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the following information to the department's chief examiner: |
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(1) the person's name; |
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(2) if the person is not an individual, the identity of |
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each examiner or other person who will perform any part of the |
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market analysis or examination; |
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(3) the name of the state that contracted with the |
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person; |
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(4) the identity of the insurer to be examined; and |
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(5) a description of each issue that the person has |
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been contracted to examine. |
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(c) It is a violation of this code for a person to accept |
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compensation from multiple states for the same examination, if |
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doing so results in duplicative costs to the insurer being |
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examined. It is not a violation of this code for: |
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(1) an examiner to conduct an examination of an |
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insurer for the benefit of multiple states in a coordinated |
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examination; and |
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(2) the examiner to accept compensation from the |
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states participating in the coordinated examination to reduce the |
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examination costs to the insurer being examined. |
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SECTION 2. Subchapter C, Chapter 401, Insurance Code, is |
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amended by adding Section 401.107 to read as follows: |
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Sec. 401.107. REGISTRATION OF CONTRACT EXAMINERS. (a) A |
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person with whom another state contracts to perform any examination |
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initiated by the other state of an insurer domiciled in this state |
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shall register with and provide the following information to the |
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department's chief examiner: |
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(1) the person's name; |
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(2) if the person is not an individual, the identity of |
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each examiner or other person who will perform any part of the |
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examination; |
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(3) the name of the state that contracted with the |
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person; |
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(4) the identity of the insurer to be examined; and |
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(5) a description of each issue that the person has |
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been contracted to examine. |
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(b) It is a violation of this code for a person to accept |
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compensation from multiple states for the same examination, if |
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doing so results in duplicative costs to the insurer being |
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examined. It is not a violation of this code for: |
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(1) an examiner to conduct an examination of an |
|
insurer for the benefit of multiple states in a coordinated |
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examination; and |
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(2) the examiner to accept compensation from the |
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states participating in the coordinated examination to reduce the |
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examination costs to the insurer being examined. |
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SECTION 3. Section 4053.107, Insurance Code, is amended by |
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adding Subsections (d) and (e) to read as follows: |
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(d) A person with whom another state contracts to perform |
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any examination initiated by the other state of a managing general |
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agent licensed under this chapter shall register with and provide |
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the following information to the department's chief examiner: |
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(1) the person's name; |
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(2) if the person is not an individual, the identity of |
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each examiner or other person who will perform any part of the |
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examination; |
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(3) the name of the state that contracted with the |
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person; |
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(4) the identity of the managing general agent to be |
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examined; and |
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(5) a description of each issue that the person has |
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been contracted to examine. |
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(e) It is a violation of this code for a person to accept |
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compensation from multiple states for the same examination, if |
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doing so results in duplicative costs to the managing general agent |
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being examined. It is not a violation of this code for: |
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(1) an examiner to conduct an examination of a |
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managing general agent for the benefit of multiple states in a |
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coordinated examination; and |
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(2) the examiner to accept compensation from the |
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states participating in the coordinated examination to reduce the |
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examination costs to the managing general agent being examined. |
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SECTION 4. 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, 2009. |