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AN ACT
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relating to credit to certain ceding insurers for reinsurance ceded |
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to certain assuming insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 492.104(b), Insurance Code, is amended |
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to read as follows: |
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(b) The funds held as security: |
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(1) must be held in the United States subject to |
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withdrawal solely by and under the exclusive control of the ceding |
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insurer or, in the case of a trust, held in a qualified United |
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States financial institution that has been granted the authority to |
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operate with fiduciary powers; and |
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(2) may be in the form of: |
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(A) cash; |
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(B) securities that[:
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[(i)
are readily marketable over a national
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exchange;
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[(ii)
have a maturity date of not later than
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one year;
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[(iii)] are listed by the Securities |
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Valuation Office of the National Association of Insurance |
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Commissioners[;] and |
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[(iv)] qualify as admitted assets; |
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(C) subject to Section 492.105, a clean, |
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irrevocable, unconditional letter of credit, issued or confirmed by |
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a qualified United States financial institution that has been |
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determined by the commissioner or the Securities Valuation Office |
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of the National Association of Insurance Commissioners to meet the |
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standards of financial condition and standing that are considered |
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necessary and appropriate to regulate the quality of financial |
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institutions whose letters of credit will be acceptable to the |
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commissioner; or |
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(D) another form of security acceptable to the |
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commissioner. |
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SECTION 2. Section 493.104(b), Insurance Code, is amended |
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to read as follows: |
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(b) The funds held as security: |
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(1) must be held in the United States subject to |
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|
withdrawal solely by and under the exclusive control of the ceding |
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|
insurer or, in the case of a trust, held in a qualified United |
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|
States financial institution that has been granted the authority to |
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|
operate with fiduciary powers; and |
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(2) may be in the form of: |
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(A) cash; |
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(B) securities that[:
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[(i)
are readily marketable over a national
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|
exchange;
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[(ii)
have a maturity date of not later than
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one year;
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[(iii)] are listed by the Securities |
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Valuation Office of the National Association of Insurance |
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Commissioners[;] and |
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[(iv)] qualify as admitted assets; |
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(C) subject to Section 493.105, a clean, |
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|
irrevocable, unconditional letter of credit, issued or confirmed by |
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|
a qualified United States financial institution that has been |
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|
determined by the commissioner or the Securities Valuation Office |
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|
of the National Association of Insurance Commissioners to meet the |
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|
standards of financial condition and standing that are considered |
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|
necessary and appropriate to regulate the quality of financial |
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institutions whose letters of credit will be acceptable to the |
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commissioner; or |
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(D) another form of security acceptable to the |
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commissioner. |
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SECTION 3. This Act applies to funds held as security on or |
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after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1093 passed the Senate on |
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April 15, 2015, by the following vote: Yeas 30, Nays 0, one |
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present not voting. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1093 passed the House |
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on May 11, 2015, by the following vote: Yeas 123, Nays 1, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |