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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. Section 823.0595(a), Insurance Code, is amended |
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to read as follows: |
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(a) The [Except as provided by Subsections (d) and (f), the] |
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ultimate controlling person, as defined by Section 823.055, of each |
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insurer required to file an annual registration shall file with the |
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registration an annual enterprise risk report. The report must, to |
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the best of the ultimate controlling person's knowledge, identify |
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the material risks within the insurance holding company system that |
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may pose enterprise risk to the insurer. The report must be filed |
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with the lead state commissioner of the insurance holding company |
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system, as determined by the commissioner. In determining the lead |
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state commissioner, the commissioner shall consider the procedures |
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adopted by the National Association of Insurance Commissioners. |
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SECTION 3. Sections 823.0595(d), (e), and (f), Insurance |
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Code, are repealed. |
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SECTION 4. 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. |