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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of certain insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article 5.13(a), Insurance Code, is amended to |
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read as follows: |
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(a) This subchapter applies to every insurance company, |
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corporation, interinsurance exchange, mutual, reciprocal, |
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association, Lloyd's plan, or other organization or insurer writing |
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any of the characters of insurance business herein set forth, |
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hereinafter called "Insurer"; provided that nothing in this entire |
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subchapter shall be construed to apply to any county or farm mutual |
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insurance company or association, as regulated under Chapters 911 |
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and 912 of this code, except that[:
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[(1)] Article 5.13-2 of this code shall apply to a |
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county mutual insurance company with respect to personal automobile |
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and commercial automobile insurance, residential and commercial |
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property insurance, and inland marine insurance[;
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[(2)
Article 5.20 of this code shall apply to a county
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mutual insurance company with respect to each line of insurance
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that a county mutual insurance company is authorized to write under
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Section 912.151; and
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[(3)
Article 5.20 of this code shall apply to a farm
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mutual insurance company with respect to each line of insurance
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that a farm mutual insurance company is authorized to write under
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Section 911.151]. |
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SECTION 2. Section 822.055(d), Insurance Code, is amended |
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to read as follows: |
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(d) The shareholders of an insurance company authorizing |
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par value shares of stock must in good faith subscribe and fully pay |
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for shares representing at least 50 percent of the total par value |
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of the authorized shares with a par value [before the company:
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[(1) is granted a charter; or
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[(2) amends its charter to:
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[(A)
authorize the issuance of par value shares;
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or
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[(B)
increase or decrease from time to time the
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number of authorized par value shares]. |
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SECTION 3. Section 822.056(d), Insurance Code, is amended |
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to read as follows: |
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(d) The shareholders of an insurance company authorizing |
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shares of stock without par value must in good faith subscribe and |
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pay for shares representing at least 50 percent of the authorized |
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shares without par value before the company is granted a charter [or
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has its charter amended to authorize the issuance of shares without
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par value]. The total amount paid for the shares must be at least |
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$250,000. |
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SECTION 4. Section 912.152(a), Insurance Code, is amended |
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to read as follows: |
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(a) A county mutual insurance company is subject to: |
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(1) Sections 1952.051-1952.055; |
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(2) Subchapter B, Chapter 2002; and |
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(3) Chapter 2301[; and
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[(4) Articles 5.06 and 5.35]. |
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SECTION 5. Section 912.301, Insurance Code, is amended to |
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read as follows: |
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Sec. 912.301. ANNUAL REPORT [REGARDING CONDITION OF
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COMPANY]. Not later than March 1 of each year, each county mutual |
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insurance company shall file with the department a verified report |
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on a form prepared by the department of: |
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(1) the business conducted by the company during the |
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preceding year; |
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(2) the condition of the affairs of the company; and |
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(3) any other information required by the department. |
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[(a)
The commissioner may, at any time the commissioner determines
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advisable, compel written reports from a county mutual insurance
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company regarding the company's condition.
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[(b)
The commissioner may require that the report be
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verified under oath by a responsible officer of the company.] |
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SECTION 6. Section 1953.001(b), Insurance Code, is amended |
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to read as follows: |
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(b) A type or class of insurance to which this section |
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applies is excluded from regulation under this chapter and: |
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(1) Articles 5.01, 5.01B, 5.03, 5.04, and 5.04-1[,
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5.06, 5.10, and 5.11]; |
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(2) Chapters 251 and 254; |
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(3) Subchapters A and B, Chapter 1806; and |
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(4) Chapters 1951 and 1952. |
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SECTION 7. The following sections of the Insurance Code are |
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repealed: |
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(1) Section 911.067; |
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(2) Section 912.061; and |
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(3) Section 912.302. |
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SECTION 8. (a) The repeal by this Act of Sections 911.067 |
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and 912.061, Insurance Code, does not apply to an application for an |
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extension of charter submitted before the effective date of this |
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Act. An application submitted before the effective date of this Act |
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is governed by the law in effect immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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(b) The repeal by this Act of Section 912.302, Insurance |
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Code, applies only to an annual statement filed on or after the |
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effective date of this Act. A statement filed before the effective |
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date of this Act is governed by the law in effect immediately before |
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the effective date of this Act, and that law is continued in effect |
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for that purpose. |
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SECTION 9. This Act takes effect September 1, 2009. |