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                                                                  S.B. No. 1283




AN ACT

relating to the application of certain laws to insurers that are 
part of an insurance holding company system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 823.015, Insurance Code, is amended to 
read as follows:  
	Sec. 823.015.  EXEMPTION FROM CHAPTER.  [(a)  This chapter 
does not apply to an insurance holding company system if each 
affiliate in the system is privately owned by not more than five 
security holders, each of whom is an individual.  For purposes of 
this subsection, a person is a security holder of another if the 
person owns any security of the other person, including common 
stock, preferred stock, a debt obligation, and any other security 
convertible into or evidencing the right to acquire stock or a debt 
obligation.
	[(b)]  The commissioner may exempt from the application of 
this chapter a commercially domiciled insurer that the commissioner 
determines has assets physically located in this state or an 
asset-to-liability ratio sufficient to justify the conclusion that 
there is no reasonable danger that the operations or conduct of the 
business of the insurer could present a danger of loss to the 
policyholders of this state.
	SECTION 2.  An insurance holding company system that becomes 
subject to Chapter 823, Insurance Code, as a result of the repeal of 
Subsection (a), Section 823.015, Insurance Code, by Section 1 of 
this Act is not required to comply with Chapter 823, Insurance Code, 
until January 1, 2006.
	SECTION 3.  This Act takes effect September 1, 2005.                    





______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 1283 passed the Senate on 
April 21, 2005, by the following vote:  Yeas 31, Nays 0; and that 
the Senate concurred in House amendments on May 27, 2005, by the 
following vote:  Yeas 29, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 1283 passed the House, with 
amendments, on May 25, 2005, by a non-record vote.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor