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A BILL TO BE ENTITLED
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AN ACT
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relating to an insurer's compliance with National Association of |
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Insurance Commissioners requirements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.004, Insurance Code, is amended to |
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read as follows: |
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Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF |
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INSURANCE COMMISSIONERS REQUIREMENTS; INTERIM RULES; REPORT. |
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(a) Except as provided by Subsection (b) or (c) or Section 36.005, |
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the department may not require an insurer to comply with a rule, |
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regulation, directive, or standard adopted by the National |
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Association of Insurance Commissioners, including a rule, |
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regulation, directive, or standard relating to policy reserves, |
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unless: |
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(1) application of the rule, regulation, directive, or |
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standard is expressly authorized by statute; or |
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(2) a statute authorizes the commissioner to adopt |
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rules consistent with the rule, regulation, directive, or standard |
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[and approved by the commissioner]. |
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(b) Subsection (a) does not apply to: |
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(1) any statute that is based on or substantially |
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similar to a National Association of Insurance Commissioners model |
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law or regulation; |
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(2) Sections 401.010 and 421.001(c); |
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(3) securities valuations by the Securities Valuation |
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Office of the National Association of Insurance Commissioners under |
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this code; |
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(4) mortality and reserve tables under Chapters 425 |
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and 1105; |
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(5) financial reporting under Chapter 443; |
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(6) fraud reporting under Chapters 701 and 1111A; |
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(7) actuarial standards for reserve reporting under |
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Chapters 401, 802, and 2551; |
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(8) the Own Risk and Solvency Assessment Guidance |
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Manual and confidentiality agreements under Chapter 830; or |
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(9) the Interstate Insurance Product Regulation |
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Compact under Chapter 5001. |
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(c) The commissioner may adopt an interim rule to require |
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compliance with a rule, regulation, directive, or standard adopted |
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by the National Association of Insurance Commissioners if: |
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(1) the commissioner finds the rule is technical or |
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nonsubstantive in nature or necessary to preserve the department's |
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accreditation; and |
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(2) before the adoption of the rule, the commissioner |
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provides the standing committees of the senate and house of |
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representatives with primary jurisdiction over the department with |
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written notice of the commissioner's intent to adopt the rule. |
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(d) A substantive rule adopted under Subsection (c) shall |
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remain in effect only until 30 days following the end of the next |
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session of the legislature unless a law is enacted that authorizes |
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the subject matter of the rule. If a law is enacted that authorizes |
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the subject matter of the rule, the rule will continue in effect. |
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(e) Not later than December 31 of each even-numbered year, |
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the department shall submit to the standing committees of the |
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senate and house of representatives with primary jurisdiction over |
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the department a written report that includes: |
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(1) the specific statutes in this code and rules |
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adopted by the commissioner that are based on National Association |
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of Insurance Commissioners model laws or regulations; |
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(2) statutory changes that may be necessary to |
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maintain the department's accreditation; and |
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(3) the most recent standards the National Association |
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of Insurance Commissioners has adopted or published that are |
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necessary to maintain the department's accreditation. |
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SECTION 2. 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. |