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AN ACT
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relating to the approval of insurance companies to provide certain |
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structured settlement annuity contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 142.009(b), Property Code, is amended to |
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read as follows: |
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(b) In approving an insurance company under Subsection |
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(a)(3), the court may consider whether the company: |
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(1) holds an issuer credit [an industry] rating |
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equivalent to a National Association of Insurance Commissioners |
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NAIC 1 designation from a national or international [at least two of
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the following] rating agency that [organizations]: |
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(A) has registered with the Securities and |
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Exchange Commission [A. M. Best Company: A++ or A+]; |
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(B) is designated as a nationally recognized |
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statistical rating organization [Duff & Phelps Credit Rating
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Company Insurance Company Claims Paying Ability Rating: AA-, AA,
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AA+, or AAA]; and |
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(C) is on the list of Credit Rating Providers by |
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the Securities Valuation Office of the National Association of |
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Insurance Commissioners [Moody's Investors Service Claims Paying
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Ability Rating: Aa3, Aa2, Aa1, or aaa; or
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[(D)
Standard & Poor's Corporation Insurer
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Claims-Paying Ability Rating: AA-, AA, AA+, or AAA]; |
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(2) is an affiliate, as that term is described by |
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Section 823.003, Insurance Code, of a liability insurance carrier |
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involved in the suit for which the structured settlement is |
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created; or |
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(3) is connected in any way to a person obligated to |
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fund the structured settlement. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3771 was passed by the House on May 7, |
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2019, by the following vote: Yeas 146, Nays 1, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3771 was passed by the Senate on May |
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22, 2019, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |