86R24196 AJA-F

By: Oliverson H.B. No. 3771

Substitute the following for H.B. No. 3771:

By: Meyer C.S.H.B. No. 3771

A BILL TO BE ENTITLED

AN ACT

relating to the approval of insurance companies to provide certain structured settlement annuity contracts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 142.009(b), Property Code, is amended to read as follows:

(b) In approving an insurance company under Subsection (a)(3), the court may consider whether the company:

(1) holds an issuer credit [an industry] rating equivalent to a National Association of Insurance Commissioners NAIC 1 designation from a national or international [at least two of the following] rating agency that [organizations]:

(A) has registered with the Securities and Exchange Commission [A. M. Best Company: A++ or A+];

(B) is designated as a nationally recognized statistical rating organization [Duff & Phelps Credit Rating Company Insurance Company Claims Paying Ability Rating: AA-, AA, AA+, or AAA]; and

(C) is on the list of Credit Rating Providers by the Securities Valuation Office of the National Association of Insurance Commissioners [Moody's Investors Service Claims Paying Ability Rating: Aa3, Aa2, Aa1, or aaa; or

[(D) Standard & Poor's Corporation Insurer Claims-Paying Ability Rating: AA-, AA, AA+, or AAA];

(2) is an affiliate, as that term is described by Section 823.003, Insurance Code, of a liability insurance carrier involved in the suit for which the structured settlement is created; or

(3) is connected in any way to a person obligated to fund the structured settlement.

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, 2019.