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A BILL TO BE ENTITLED
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AN ACT
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relating to registration statement and reporting requirements of |
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insurers in an insurance holding company system. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 823.054(b), Insurance Code, is amended |
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to read as follows: |
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(b) If the amount of a single transaction or the total |
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amount of all transactions involving sales, purchases, exchanges, |
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loans or other extensions of credit, or investments is more than |
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[the lesser of] one-half of one percent of an insurer's admitted |
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assets [or five percent of an insurer's surplus,] as of December 31 |
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of the year preceding the date of the transaction or transactions, |
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the transaction or transactions, respectively, are considered to be |
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material for purposes of this section. |
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SECTION 2. Sections 823.0595(d) and (f), Insurance Code, |
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are amended to read as follows: |
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(d) Except as provided by Subsection (e), the ultimate |
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controlling person of a domestic [an] insurer that is authorized, |
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admitted, or eligible to engage in the business of insurance only in |
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this state and has [with] total direct or assumed annual premiums of |
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less than $300 million is not required to submit an enterprise risk |
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report under Subsection (a) unless the ultimate controlling person |
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of the domestic insurer also controls other insurers that do not |
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meet the requirements of this subsection. For the purposes of this |
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subsection, an insurer is not considered to be authorized, |
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admitted, or eligible to engage in the business of insurance only in |
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this state if the insurer directly or indirectly writes or assumes |
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insurance in any manner in another state. |
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(f) An insurer [or health maintenance organization] that in |
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the preceding calendar year had direct written and assumed premiums |
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of more than $300 million but less than $500 million and otherwise |
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meets the requirements of Subsection (d) may request an exemption |
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from the reporting requirements of Subsection (a) by filing with |
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the commissioner a written statement describing the undue financial |
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or organizational hardship the insurer [or health maintenance
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organization] would suffer as a result of complying with Subsection |
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(a). The commissioner may grant the exemption if the commissioner |
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finds that compliance with Subsection (a) would impose an undue |
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financial or organizational hardship on the insurer [or health
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maintenance organization]. |
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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, 2017. |