H.B. No. 4359
 
 
 
 
AN ACT
  relating to the registration with the Texas Department of Insurance
  of certain contract examiners.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 751.052, Insurance Code, is amended to
  read as follows:
         Sec. 751.052.  COORDINATION WITH OTHER STATES; REGISTRATION
  OF CONTRACT EXAMINER(a) The commissioner shall coordinate the
  department's market analysis and examination efforts with other
  states through the National Association of Insurance
  Commissioners.
         (b)  A person with whom another state contracts to perform
  any market analysis or examination initiated by the other state of
  an insurer domiciled in this state shall register with and provide
  the following information to the department's chief examiner:
               (1)  the person's name;
               (2)  if the person is not an individual, the identity of
  each examiner or other person who will perform any part of the
  market analysis or examination;
               (3)  the name of the state that contracted with the
  person;
               (4)  the identity of the insurer to be examined; and
               (5)  a description of each issue that the person has
  been contracted to examine.
         (c)  It is a violation of this code for a person to accept
  compensation from multiple states for the same examination, if
  doing so results in duplicative costs to the insurer being
  examined. It is not a violation of this code for:
               (1)  an examiner to conduct an examination of an
  insurer for the benefit of multiple states in a coordinated
  examination; and
               (2)  the examiner to accept compensation from the
  states participating in the coordinated examination to reduce the
  examination costs to the insurer being examined.
         SECTION 2.  Subchapter C, Chapter 401, Insurance Code, is
  amended by adding Section 401.107 to read as follows:
         Sec. 401.107.  REGISTRATION OF CONTRACT EXAMINERS. (a) A
  person with whom another state contracts to perform any examination
  initiated by the other state of an insurer domiciled in this state
  shall register with and provide the following information to the
  department's chief examiner:
               (1)  the person's name;
               (2)  if the person is not an individual, the identity of
  each examiner or other person who will perform any part of the
  examination;
               (3)  the name of the state that contracted with the
  person;
               (4)  the identity of the insurer to be examined; and
               (5)  a description of each issue that the person has
  been contracted to examine.
         (b)  It is a violation of this code for a person to accept
  compensation from multiple states for the same examination, if
  doing so results in duplicative costs to the insurer being
  examined. It is not a violation of this code for:
               (1)  an examiner to conduct an examination of an
  insurer for the benefit of multiple states in a coordinated
  examination; and
               (2)  the examiner to accept compensation from the
  states participating in the coordinated examination to reduce the
  examination costs to the insurer being examined.
         SECTION 3.  Section 4053.107, Insurance Code, is amended by
  adding Subsections (d) and (e) to read as follows:
         (d)  A person with whom another state contracts to perform
  any examination initiated by the other state of a managing general
  agent licensed under this chapter shall register with and provide
  the following information to the department's chief examiner:
               (1)  the person's name;
               (2)  if the person is not an individual, the identity of
  each examiner or other person who will perform any part of the
  examination;
               (3)  the name of the state that contracted with the
  person;
               (4)  the identity of the managing general agent to be
  examined; and
               (5)  a description of each issue that the person has
  been contracted to examine.
         (e)  It is a violation of this code for a person to accept
  compensation from multiple states for the same examination, if
  doing so results in duplicative costs to the managing general agent
  being examined. It is not a violation of this code for:
               (1)  an examiner to conduct an examination of a
  managing general agent for the benefit of multiple states in a
  coordinated examination; and
               (2)  the examiner to accept compensation from the
  states participating in the coordinated examination to reduce the
  examination costs to the managing general agent being examined.
         SECTION 4.  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, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4359 was passed by the House on April
  15, 2009, by the following vote:  Yeas 147, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 4359 was passed by the Senate on May
  26, 2009, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor