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R E S O L U T I O N
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BE IT RESOLVED by the House of Representatives of the State of |
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Texas, 83rd Legislature, Regular Session, 2013, That House Rule 13, |
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Section 9(a), be suspended in part as provided by House Rule 13, |
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Section 9(f), to enable the conference committee appointed to |
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resolve the differences on House Bill 3106 (compensatory payments |
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and reinsurance agreements made in connection with the issuance of |
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title insurance) to consider and take action on the following |
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matter: |
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House Rule 13, Section 9(a)(4), is suspended to permit the |
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committee to add text on a matter which is not included in either |
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the house or senate version of the bill by adding the following new |
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SECTIONS to the bill: |
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SECTION 2. Section 2551.305, Insurance Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) Notwithstanding any other provision of this subchapter, |
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a title insurance company may obtain reinsurance by a reinsurance |
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treaty or other reinsurance agreement from an assuming insurer with |
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a financial strength rating of B+ or better from the A. M. Best |
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Company that meets the requirements of Subchapter C, Chapter 493, |
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if the title insurance company has provided the department with an |
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affidavit that: |
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(1) contains facts that demonstrate the title |
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insurance company was unable after diligent effort to procure |
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sufficient reinsurance from another title insurance company; and |
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(2) states the terms of the reinsurance treaty or |
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other reinsurance agreement that the title insurance company will |
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obtain. |
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SECTION 4. The change in law made by Section 2551.305(e), |
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Insurance Code, as added by this Act, applies only to reinsurance |
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obtained on or after the effective date of this Act. Reinsurance |
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obtained before the effective date of this Act is governed by the |
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law as it existed immediately before the effective date of this Act, |
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and that law is continued in effect for that purpose. |
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Explanation: This addition is necessary to allow a title |
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insurance company, on satisfaction of certain requirements, to |
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obtain reinsurance from certain insurers. |