| |
| |
|
|
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, Property Code, is amended by |
|
|
amending Subsection (b) and adding Subsection (c) 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 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. |
|
|
(c) The presiding judge may resolve disputes regarding |
|
|
which company will provide the annuity contract for a structured |
|
|
settlement by making a determination that is in the best interests |
|
|
of the beneficiary of the structured settlement, taking into |
|
|
account factors customarily considered in making a determination |
|
|
under Section 141.004, Civil Practice and Remedies Code. |
|
|
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. |