By: Hancock  S.B. No. 1073
         (In the Senate - Filed February 23, 2017; March 7, 2017,
  read first time and referred to Committee on Business & Commerce;
  April 10, 2017, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 8, Nays 1; April 10, 2017,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1073 By:  Hancock
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to registration statement and reporting requirements of
  insurers in an insurance holding company system.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 823.054(b), Insurance Code, is amended
  to read as follows:
         (b)  If the amount of a single transaction or the total
  amount of all transactions involving sales, purchases, exchanges,
  loans or other extensions of credit, or investments is more than
  [the lesser of] one-half of one percent of an insurer's admitted
  assets [or five percent of an insurer's surplus,] as of December 31
  of the year preceding the date of the transaction or transactions,
  the transaction or transactions, respectively, are considered to be
  material for purposes of this section.
         SECTION 2.  Sections 823.0595(d) and (f), Insurance Code,
  are amended to read as follows:
         (d)  Except as provided by Subsection (e), the ultimate
  controlling person of a domestic [an] insurer that is authorized,
  admitted, or eligible to engage in the business of insurance only in
  this state and has [with] total direct or assumed annual premiums of
  less than $300 million is not required to submit an enterprise risk
  report under Subsection (a) unless the ultimate controlling person
  of the domestic insurer also controls other insurers that do not
  meet the requirements of this subsection. For the purposes of this
  subsection, an insurer is not considered to be authorized,
  admitted, or eligible to engage in the business of insurance only in
  this state if the insurer directly or indirectly writes or assumes
  insurance in any manner in another state.
         (f)  An insurer [or health maintenance organization] that in
  the preceding calendar year had direct written and assumed premiums
  of more than $300 million but less than $500 million and otherwise
  meets the requirements of Subsection (d) may request an exemption
  from the reporting requirements of Subsection (a) by filing with
  the commissioner a written statement describing the undue financial
  or organizational hardship the insurer [or health maintenance
  organization] would suffer as a result of complying with Subsection
  (a).  The commissioner may grant the exemption if the commissioner
  finds that compliance with Subsection (a) would impose an undue
  financial or organizational hardship on the insurer [or health
  maintenance organization].
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
 
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