| |
| |
| |
|
|
AN ACT
|
|
|
relating to the frequency and expenses of certain examinations |
|
|
conducted by the Texas Department of Insurance. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 401.052, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 401.052. FREQUENCY OF EXAMINATION. (a) Subject to |
|
|
Subsection (b) and except as provided by the rules adopted under |
|
|
that subsection, the [The] department shall visit and examine a |
|
|
carrier as frequently[:
|
|
|
[(1)
annually during the first three years after the
|
|
|
carrier is organized or incorporated; and
|
|
|
[(2)
except as provided by Subsection (b), once every
|
|
|
three years after the period described by Subdivision (1), or on a
|
|
|
more frequent basis] as the department considers necessary. At a |
|
|
minimum, the department shall examine a carrier not less frequently |
|
|
than once every five years. |
|
|
(b) [If the commissioner determines that the financial
|
|
|
strength of a carrier justifies less frequent examinations than
|
|
|
those required under Subsection (a)(2), the department may conduct
|
|
|
the examination at intervals not less frequent than every five
|
|
|
years.] The commissioner shall adopt rules governing the frequency |
|
|
of examinations of carriers that have been organized or |
|
|
incorporated for less than five years [determination under this
|
|
|
subsection of whether the financial strength of a carrier justifies
|
|
|
less frequent examinations]. |
|
|
SECTION 2. Section 1305.251, Insurance Code, is amended by |
|
|
adding Subsections (c) and (d) to read as follows: |
|
|
(c) A network shall pay a fee to the department, in an amount |
|
|
set by the commissioner and in accordance with rules adopted by the |
|
|
commissioner, for the expenses of an examination conducted under |
|
|
this section or Section 1305.252 that: |
|
|
(1) are incurred by the commissioner or under the |
|
|
commissioner's authority; and |
|
|
(2) are directly attributable to that examination, |
|
|
including the actual salaries and expenses of the examiners |
|
|
directly attributable to that examination, as determined under |
|
|
rules adopted by the commissioner. |
|
|
(d) Fees collected under this section shall be deposited to |
|
|
the credit of the Texas Department of Insurance operating account. |
|
|
SECTION 3. This Act takes effect September 1, 2007. |
|
|
|
|
|
|
| |
| |
| |
| |
______________________________ |
______________________________ |
| |
President of the Senate |
Speaker of the House |
| |
|
|
I hereby certify that S.B. No. 1253 passed the Senate on |
|
|
April 12, 2007, by the following vote: Yeas 31, Nays 0. |
|
|
|
| |
| |
______________________________ |
| |
Secretary of the Senate |
| |
|
|
I hereby certify that S.B. No. 1253 passed the House on |
|
|
May 10, 2007, by the following vote: Yeas 128, Nays 0, one present |
|
|
not voting. |
|
|
|
| |
| |
______________________________ |
| |
Chief Clerk of the House |
| |
|
|
|
| |
|
|
Approved: |
|
|
|
|
|
______________________________ |
|
|
Date |
|
|
|
|
|
|
|
|
______________________________ |
|
|
Governor |