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SENATE RESOLUTION
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BE IT RESOLVED by the Senate of the State of Texas, 83rd |
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Legislature, Regular Session, 2013, That Senate Rule 12.03 be |
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suspended in part as provided by Senate Rule 12.08 to enable the |
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conference committee appointed to resolve the differences on |
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House Bill 3106 (compensatory payments and reinsurance |
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agreements made in connection with the issuance of title |
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insurance) to consider and take action on the following matter: |
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Senate Rule 12.03(4) is suspended to permit the committee |
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to add text on a matter which is not included in either the house |
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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 |
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by adding Subsection (e) to read as follows: |
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(e) Notwithstanding any other provision of this |
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subchapter, a title insurance company may obtain reinsurance by a |
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reinsurance treaty or other reinsurance agreement from an |
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assuming insurer with a financial strength rating of B+ or better |
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from the A. M. Best Company that meets the requirements of |
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Subchapter C, Chapter 493, if the title insurance company has |
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provided the department with an 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 |
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will 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 |
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Act, 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. |
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_______________________________ |
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President of the Senate |
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I hereby certify that the |
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above Resolution was adopted by |
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the Senate on May 26, 2013, by the |
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following vote: Yeas 31, Nays 0. |
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_______________________________ |
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Secretary of the Senate |