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  H.B. No. 1047
 
 
 
 
AN ACT
  relating to the regulation of certain surety companies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 221.002(c), Insurance Code, is amended
  to read as follows:
         (c)  The following premium receipts are not included in
  determining an insurer's taxable premium receipts:
               (1)  premium receipts received from the business of
  title insurance;
               (2)  premium receipts received from the business of
  life insurance, personal accident insurance, life and accident
  insurance, or health and accident insurance for profit, written by
  a life insurance company, life and accident insurance company,
  health and accident insurance company, or for mutual benefit or
  protection in this state;
               (3)  premium receipts received from another authorized
  insurer for reinsurance;
               (4)  returned premiums and dividends paid to
  policyholders; [and]
               (5)  premiums excluded by another law of this state;
  and
               (6)  premiums or service fees retained by a bail bond
  surety licensed under Chapter 1704, Occupations Code, or by a
  property and casualty agent in connection with the execution or
  delivery of a bail bond as defined by Section 1704.001, Occupations
  Code.
         SECTION 2.  Subchapter E, Chapter 3503, Insurance Code, is
  amended by adding Sections 3503.202, 3503.203, and 3503.204 to read
  as follows:
         Sec. 3503.202.  UNEARNED PREMIUM RESERVE FOR BAIL BOND NOT
  REQUIRED. A surety company is not required to maintain an unearned
  premium reserve for a bail bond, as defined by Section 1704.001,
  Occupations Code, executed or delivered by the company.
         Sec. 3503.203.  DIRECT WRITTEN PREMIUM CALCULATION. Direct
  written premium reported by a surety company in a financial
  statement filed with the department may be calculated excluding any
  premiums or service fees retained by a bail bond surety licensed
  under Chapter 1704, Occupations Code, or by a property and casualty
  agent in connection with the execution or delivery of a bail bond as
  defined by Section 1704.001, Occupations Code.
         Sec. 3503.204.  DISCLOSURE REQUIREMENTS. A surety company
  that executes or delivers in this state a bail bond as defined by
  Section 1704.001, Occupations Code, shall disclose in the company's
  financial statement filed with the department the aggregate amount
  of:
               (1)  gross premium for bail bond business reported in
  the company's surety line of business;
               (2)  premium or service fees retained by the bail bond
  surety or agent; and
               (3)  premium for bail bond business received by the
  company, net of amounts retained by the bail bond surety or agent.
         SECTION 3.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1047 was passed by the House on May 2,
  2013, by the following vote:  Yeas 146, Nays 0, 4 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1047 was passed by the Senate on May
  20, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor