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You are here: Home . bulletins . 2017 . b-0030-17

COMMISSIONER'S BULLETIN # B-0030-17

September 15, 2017


To: ALL REGULATED ENTITIES, THEIR AGENTS AND REPRESENTATIVES, AND THE PUBLIC GENERALLY


Re: Legislation Enacted – 85th Legislative Regular and First Called Sessions

This bulletin provides brief summaries of selected bills enacted by the 85th Legislature that affect the regulation of solvency and licensing that may be relevant to individuals and entities regulated by the Texas Department of Insurance (TDI).

TDI is only providing summary information in this bulletin regarding particular provisions of the bills that may apply to the regulation of solvency and licensing. Please refer to the actual bills for the complete content of the legislation. If you view the bills in this bulletin on a web-enabled computer, each bill number will link directly to the enrolled bill text. Alternatively, you may access the bills, as well as other legislative information, at the Texas Legislature Online website at www.capitol.state.tx.us.

TDI has attempted to include only relevant legislation. While TDI encourages use of this bulletin to aid in your compliance efforts, individuals and entities regulated by TDI are responsible for ensuring compliance with all enacted legislation affecting the business they conduct.

To completely and timely implement any changes necessary to comply with new and amended statutes, share this information with all staff, agents, and other parties affected by the legislation. Also, review each bill listed below and monitor TDI's website for rules TDI may propose to implement the legislation.

In addition to monitoring TDI's website, you can stay connected by receiving email or text message updates from TDI by signing up online at www.tdi.texas.gov//news/index.html. This will allow you to receive notifications regarding proposed rules, bulletins, and other items of interest.

House and Senate Bills Relating to Regulation of Solvency and Licensing

(This list may not include all bills affecting your insurance business.)

House Bills

HB 2437               Confidentiality of reports and related information for a solvency examination of an insurance carrier. This bill amends Insurance Code Chapter 401 to make financial examination reports and any information obtained during an examination by TDI privileged for all purposes and not subject to subpoena or discovery.

 This bill took effect May 26, 2017.

HB 2492               Domestic surplus lines insurers. This bill amends Insurance Code Chapter 981 to authorize a property and casualty insurance company organized under the Insurance Code that has capital and surplus in an amount of at least $15 million to apply to TDI for designation as a domestic surplus lines insurer allowed to sell surplus lines insurance in Texas. It also authorizes a foreign insurer to redomesticate to Texas as a domestic surplus lines insurer.

This bill takes effect January 1, 2018.

HB 3220               Regulation of insurance holding company systems. This bill amends Insurance Code Chapter 823 to authorize and establish a framework for the commissioner to act as the group-wide supervisor for certain internationally active insurance groups. The bill also expressly allows the commissioner to become the primary regulator, or supervisor, of an internationally active insurance group that prefers to be primarily regulated by Texas.

This bill took effect May 19, 2017.

Senate Bills

SB 1070                Authorized reinsurance and financial statement credit and accounting for reinsurance. This bill, named “The Mattax Act,” provides for a reduction in the amount of collateral reinsurers must post to secure their obligations to Texas domestic insurers if the reinsurers meet certain requirements. Under the Act, in order to qualify for reduced collateral requirements, reinsurers must meet financial requirements and reside in a jurisdiction with a history of honoring and enforcing U.S. judgments. 

This bill took effect September 1, 2017, but only applies to a reinsurance contract entered into or renewed on or after January 1, 2018.

SB 1073                Registration statement and reporting requirements of insurers in an insurance holding company system. This bill amends Insurance Code Chapter 823 to narrow the exemptions from filing an enterprise risk report and modify disclosure requirements.  An exemption is allowed only if all insurers in the insurance holding company system are domesticated in Texas, the total direct or assumed annual premium is less than $300 million, and any insurer in the holding company system does not directly or indirectly write or assume insurance in any manner in another state. Also, the bill decreases the material transaction disclosure requirements for holding company registration statements.              

This bill took effect May 22, 2017.

If you have questions concerning the bills listed in this bulletin, please contact the following offices, as applicable:

Regulation of solvency: Financial Analysis at (512) 676-6885 or (800) 578-4677, or by email at FinancialAnalysis@tdi.texas.gov.

Regulation of licensing: Company Licensing and Registration at (512) 676-6400 or (866) 554-4926, or by email at CompanyLicense@tdi.texas.gov.



For more information contact:

Last updated: 09/18/2017

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