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A BILL TO BE ENTITLED
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AN ACT
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relating to security deposit requirements for certain insurance |
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companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 861.252(b) and (d), Insurance Code, are |
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amended to read as follows: |
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(b) If, as a prerequisite to engaging in the business of |
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insurance in another state, country, or province, a general |
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casualty company is required to deposit with the appropriate |
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officer of that state, country, or province, or with the |
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comptroller, securities or cash [in excess of the deposit made
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under Subsection (a)], the company may deposit with the comptroller |
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any authorized securities or cash sufficient to meet the |
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requirement. The comptroller shall receive and hold the deposit |
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exclusively for the protection of policyholders of the company. |
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(d) A general casualty company may change the company's |
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securities on deposit with the comptroller by withdrawing those |
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securities and substituting an equal amount of other securities |
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consisting only of: |
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(1) United States currency; |
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(2) bonds of any state; |
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(3) bonds or other evidences of indebtedness of the |
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United States the principal and interest of which are guaranteed by |
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the United States; |
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(4) bonds or other interest-bearing evidences of |
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indebtedness of a county or municipality of any state; |
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(5) notes secured by first mortgages: |
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(A) on otherwise unencumbered real property in |
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this state the title to which is valid; and |
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(B) the payment of which is insured wholly or |
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partly by the United States; or |
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(6) another form of security acceptable to the |
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commissioner [authorized by Subsection (a)]. |
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SECTION 2. Sections 861.252(a) and 982.306, Insurance Code, |
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are repealed. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |