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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirements for reinsurance contracts covering |
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title insurance policies issued in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2551.302, Insurance Code, is amended to |
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read as follows: |
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Sec. 2551.302. REQUIREMENTS FOR REINSURING POLICIES. A |
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title insurance company may reinsure any of its policies and |
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contracts issued on real property located in this state or on |
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policies and contracts issued in this state under Chapter 2751, |
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if[:
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[(1)] the reinsuring title insurance company is |
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authorized to engage in business in this state under this title[;
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and
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[(2) the department first approves the form of the
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reinsurance contract]. |
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SECTION 2. Section 2551.303, Insurance Code, is repealed. |
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SECTION 3. The change in law made by this Act applies only |
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to a reinsurance contract entered into by a title insurance company |
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on or after the effective date of this Act. A reinsurance contract |
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entered into by a title insurance company before the effective date |
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of this Act is governed by the law in effect immediately before the |
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effective date of this Act, and the former law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |