| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to insurance premium and maintenance taxes, and payment of |
|
|
excess losses of the Texas Windstorm Insurance Association. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subsection (b), Section 221.001, Insurance Code, |
|
|
is amended to read as follows: |
|
|
(b) This chapter does not apply to: |
|
|
(1) a fraternal benefit society, including a fraternal |
|
|
benefit society operating under Chapter 885; |
|
|
(2) a group hospital service corporation operating |
|
|
under Chapter 842; |
|
|
(3) a stipulated premium company operating under |
|
|
Chapter 884; |
|
|
(4) a mutual assessment association, company, or |
|
|
corporation regulated under Chapter 887; [or]
|
|
|
(5) a purely cooperative or mutual fire insurance |
|
|
company carried on by its members solely for the protection of their |
|
|
own property and not for profit, except as provided by Section |
|
|
221.002(b)(13); or |
|
|
(6) a farm mutual insurance company operating under |
|
|
Chapter 911, unless the company: |
|
|
(A) insures property in more than five counties |
|
|
in this state; |
|
|
(B) has gross annual premium receipts greater |
|
|
than $1 million; or |
|
|
(C) is a member of an insurance group that |
|
|
includes insurance companies that write insurance that is not among |
|
|
the lines of insurance that a farm mutual insurance company is |
|
|
authorized to write under Section 911.151.
|
|
|
SECTION 2. Section 252.005, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 252.005. EXCEPTION. This chapter does not apply to: |
|
|
(1) a farm mutual insurance company operating under |
|
|
Chapter 911, unless the company: |
|
|
(A) insures property in more than five counties |
|
|
in this state; |
|
|
(B) has gross annual premium receipts greater |
|
|
than $1 million; or |
|
|
(C) is a member of an insurance group that |
|
|
includes insurance companies that write insurance that is not among |
|
|
the lines of insurance that a farm mutual insurance company is |
|
|
authorized to write under Section 911.151; or
|
|
|
(2) a mutual insurance company engaged in business |
|
|
under Chapter 12, Title 78, Revised Statutes, before that chapter's |
|
|
repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st |
|
|
Called Session, 1929, as amended by Section 1, Chapter 60, General |
|
|
Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that |
|
|
retains the rights and privileges under the repealed law to the |
|
|
extent provided by those sections. |
|
|
SECTION 3. Subsection (b), Section 2210.006, Insurance |
|
|
Code, is amended to read as follows: |
|
|
(b) This chapter does not apply to: |
|
|
(1) a farm mutual insurance company operating under |
|
|
Chapter 911, unless the company: |
|
|
(A) insures property in more than five counties |
|
|
in this state; |
|
|
(B) has gross annual premium receipts greater |
|
|
than $1 million; or |
|
|
(C) is a member of an insurance group that |
|
|
includes insurance companies that write insurance that is not among |
|
|
the lines of insurance that a farm mutual insurance company is |
|
|
authorized to write under Section 911.151;
|
|
|
(2) a nonaffiliated county mutual fire insurance |
|
|
company described by Section 912.310 that is writing exclusively |
|
|
industrial fire insurance policies as described by Section |
|
|
912.310(a)(2); or |
|
|
(3) a mutual insurance company or a statewide mutual |
|
|
assessment company engaged in business under Chapter 12 or 13, |
|
|
Title 78, Revised Statutes, respectively, before those chapters' |
|
|
repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st |
|
|
Called Session, 1929, as amended by Section 1, Chapter 60, General |
|
|
Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that |
|
|
retains the rights and privileges under the repealed law to the |
|
|
extent provided by those sections. |
|
|
SECTION 4. (a) The changes in law made by Sections 1 and 2 |
|
|
of this Act do not affect tax liability accruing before the |
|
|
effective date of this Act. That liability continues in effect as |
|
|
if this Act had not been enacted, and the former law is continued in |
|
|
effect for the collection of taxes due and for civil and criminal |
|
|
enforcement of the liability for those taxes. |
|
|
(b) The change in law made by Section 3 of this Act does not |
|
|
affect liability for an assessment accruing under Chapter 2210, |
|
|
Insurance Code, before the effective date of this Act. That |
|
|
liability continues in effect as if this Act had not been enacted, |
|
|
and the former law is continued in effect for the collection of |
|
|
assessments due and for civil and criminal enforcement of the |
|
|
liability for those assessments. |
|
|
SECTION 5. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect January 1, 2012. |