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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 surety companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 221.002(c), Insurance Code, is amended |
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to read as follows: |
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(c) The following premium receipts are not included in |
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determining an insurer's taxable premium receipts: |
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(1) premium receipts received from the business of |
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title insurance; |
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(2) premium receipts received from the business of |
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life insurance, personal accident insurance, life and accident |
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insurance, or health and accident insurance for profit, written by |
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a life insurance company, life and accident insurance company, |
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health and accident insurance company, or for mutual benefit or |
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protection in this state; |
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(3) premium receipts received from another authorized |
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insurer for reinsurance; |
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(4) returned premiums and dividends paid to |
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policyholders; [and] |
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(5) premiums excluded by another law of this state; |
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and |
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(6) premiums or service fees retained by a bail bond |
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surety licensed under Chapter 1704, Occupations Code, or by a |
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property and casualty agent in connection with the execution or |
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delivery of a bail bond as defined by Section 1704.001, Occupations |
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Code. |
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SECTION 2. Subchapter E, Chapter 3503, Insurance Code, is |
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amended by adding Sections 3503.202, 3503.203, and 3503.204 to read |
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as follows: |
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Sec. 3503.202. UNEARNED PREMIUM RESERVE FOR BAIL BOND NOT |
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REQUIRED. A surety company is not required to maintain an unearned |
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premium reserve for a bail bond, as defined by Section 1704.001, |
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Occupations Code, executed or delivered by the company. |
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Sec. 3503.203. DIRECT WRITTEN PREMIUM CALCULATION. Direct |
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written premium reported by a surety company in a financial |
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statement filed with the department may be calculated excluding any |
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premiums or service fees retained by a bail bond surety licensed |
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under Chapter 1704, Occupations Code, or by a property and casualty |
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agent in connection with the execution or delivery of a bail bond as |
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defined by Section 1704.001, Occupations Code. |
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Sec. 3503.204. DISCLOSURE REQUIREMENTS. A surety company |
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that executes or delivers in this state a bail bond as defined by |
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Section 1704.001, Occupations Code, shall disclose in the company's |
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financial statement filed with the department the aggregate amount |
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of: |
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(1) gross premium for bail bond business reported in |
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the company's surety line of business; |
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(2) premium or service fees retained by the bail bond |
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surety or agent; and |
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(3) premium for bail bond business received by the |
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company, net of amounts retained by the bail bond surety or agent. |
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SECTION 3. This Act takes effect September 1, 2013. |
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