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CONCURRENT RESOLUTION
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WHEREAS, Like many other states, Texas incorporates |
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noncontroversial technical and procedural changes into its |
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insurance statutes by reference to the model laws and regulations |
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of the National Association of Insurance Commissioners; this |
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practice is known as incorporation by reference; and |
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WHEREAS, An example of incorporation by reference is Section |
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421.001(c), Insurance Code, which requires the commissioner of |
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insurance to adopt each current formula recommended by the National |
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Association of Insurance Commissioners for establishing reserves |
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for each line of insurance; and |
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WHEREAS, Another example is Section 541.401(b)(2), Insurance |
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Code, which authorizes the commissioner of insurance to adopt a |
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rulemaking provision the commissioner considers necessary to |
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conform to the adopted procedures of the National Association of |
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Insurance Commissioners; and |
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WHEREAS, There is concern that incorporation by reference in |
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the Texas Insurance Code is an unconstitutional delegation of |
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legislative authority, and a study would help to determine the |
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appropriateness of using National Association of Insurance |
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Commissioners model laws and regulations instead of passing laws |
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specific to Texas; now, therefore, be it |
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RESOLVED, That the 86th Legislature of the State of Texas |
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hereby request the lieutenant governor and the speaker of the house |
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of representatives to create a joint interim committee to study the |
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use of incorporation by reference in the Texas Insurance Code; and, |
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be it further |
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RESOLVED, That the committee submit a full report, including |
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findings and recommendations, to the 87th Texas Legislature before |
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it convenes in January 2021; and, be it further |
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RESOLVED, That the committee's proceedings and operations be |
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governed by such general rules and policies for interim committees |
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as the 86th Texas Legislature may adopt. |