85R31312 SCL-F
 
  By: Taylor of Galveston S.B. No. 1449
 
  (Bonnen of Galveston)
 
  Substitute the following for S.B. No. 1449:  No.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an insurer's compliance with National Association of
  Insurance Commissioners requirements.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 36.004, Insurance Code, is amended to
  read as follows:
         Sec. 36.004.  COMPLIANCE WITH NATIONAL ASSOCIATION OF
  INSURANCE COMMISSIONERS REQUIREMENTS; INTERIM RULES; REPORT.
  (a)  Except as provided by Subsection (b) or (c) or Section 36.005,
  the department may not require an insurer to comply with a rule,
  regulation, directive, or standard adopted by the National
  Association of Insurance Commissioners, including a rule,
  regulation, directive, or standard relating to policy reserves,
  unless:
               (1)  application of the rule, regulation, directive, or
  standard is expressly authorized by statute; or
               (2)  a statute authorizes the commissioner to adopt
  rules consistent with the rule, regulation, directive, or standard 
  [and approved by the commissioner].
         (b)  Subsection (a) does not apply to:
               (1)  any statute that is based on or substantially
  similar to a National Association of Insurance Commissioners model
  law or regulation;
               (2)  Sections 401.010 and 421.001(c);
               (3)  securities valuations by the Securities Valuation
  Office of the National Association of Insurance Commissioners under
  this code;
               (4)  mortality and reserve tables under Chapters 425
  and 1105;
               (5)  financial reporting under Chapter 443;
               (6)  fraud reporting under Chapters 701 and 1111A;
               (7)  actuarial standards for reserve reporting under
  Chapters 401, 802, and 2551;
               (8)  the Own Risk and Solvency Assessment Guidance
  Manual and confidentiality agreements under Chapter 830; or
               (9)  the Interstate Insurance Product Regulation
  Compact under Chapter 5001.
         (c)  The commissioner may adopt an interim rule to require
  compliance with a rule, regulation, directive, or standard adopted
  by the National Association of Insurance Commissioners if:
               (1)  the commissioner finds the rule is technical or
  nonsubstantive in nature or necessary to preserve the department's
  accreditation; and
               (2)  before the adoption of the rule, the commissioner
  provides the standing committees of the senate and house of
  representatives with primary jurisdiction over the department with
  written notice of the commissioner's intent to adopt the rule.
         (d)  A substantive rule adopted under Subsection (c) shall
  remain in effect only until 30 days following the end of the next
  session of the legislature unless a law is enacted that authorizes
  the subject matter of the rule. If a law is enacted that authorizes
  the subject matter of the rule, the rule will continue in effect.
         (e)  Not later than December 31 of each even-numbered year,
  the department shall submit to the standing committees of the
  senate and house of representatives with primary jurisdiction over
  the department a written report that includes:
               (1)  the specific statutes in this code and rules
  adopted by the commissioner that are based on National Association
  of Insurance Commissioners model laws or regulations;
               (2)  statutory changes that may be necessary to
  maintain the department's accreditation; and
               (3)  the most recent standards the National Association
  of Insurance Commissioners has adopted or published that are
  necessary to maintain the department's accreditation.
         SECTION 2.  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.