H.B. No. 3673
  relating to an exemption for certain life insurance companies
  regarding the valuation of reserves.
         SECTION 1.  Section 425.073(d), Insurance Code, is amended
  to read as follows:
         (d)  The valuation manual must specify:
               (1)  the minimum valuation standards for and
  definitions of the policies or contracts subject to Section
  425.0535, including:
                     (A)  the commissioner's reserve valuation method
  for life insurance contracts subject to Section 425.0535;
                     (B)  the commissioner's annuity reserve valuation
  method for annuity contracts subject to Section 425.0535; and
                     (C)  the minimum reserves for all other policies
  or contracts subject to Section 425.0535;
               (2)  the policies or contracts that are subject to the
  requirements of a principle-based valuation under Section 425.074
  and the minimum valuation standards consistent with those
  requirements, including:
                     (A)  the requirements for the format of reports to
  the commissioner under Section 425.074(b)(3), which must include
  the information necessary to determine if a valuation is
  appropriate and in compliance with this subchapter;
                     (B)  the assumptions prescribed for risks over
  which the company does not have significant control or influence;
                     (C)  the procedures for corporate governance and
  oversight of the actuarial function, and a process for appropriate
  waiver or modification of the procedures;
               (3)  the policies that are not subject to a
  principle-based valuation under Section 425.074;
               (4)  the data and form of data required under Section
  425.075, to whom the data must be submitted, and other desired
  requirements, including requirements concerning data analyses and
  reporting of analyses;
               (5)  other requirements, including requirements
  relating to reserve methods, models for measuring risk, generation
  of economic scenarios, assumptions, margins, use of company
  experience, disclosure, certification, reports, actuarial opinions
  and memorandums, transition rules, and internal controls; and
               (6)  an exemption that allows certain [small] companies
  to value reserves based on an exception from certain requirements
  of this section and Section 425.074[; however, the premium
  thresholds for determining whether the exemption applies shall be
  as follows:
                     [(A)  less than $300 million of ordinary life
  premium; and
                     [(B)  less than $600 million of combined ordinary
  life premiums for a group of life insurers if the company is a
  member of that group].
         SECTION 2.  Section 425.073(e), Insurance Code, is repealed.
         SECTION 3.  This Act takes effect September 1, 2023.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 3673 was passed by the House on April
  28, 2023, by the following vote:  Yeas 135, Nays 9, 2 present, not
  Chief Clerk of the House   
         I certify that H.B. No. 3673 was passed by the Senate on May
  16, 2023, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
  APPROVED:  _____________________