84R17476 PMO-F
	By: Sheets	H.B. No. 1344
	Substitute the following for H.B. No. 1344:
	By:  Guerra	C.S.H.B. No. 1344

	A BILL TO BE ENTITLED
	AN ACT
	relating to credit to certain ceding insurers for reinsurance ceded
	to certain assuming insurers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 492.104(b), Insurance Code, is amended
	to read as follows:
	(b)  The funds held as security:
	(1)  must be held in the United States subject to
	withdrawal solely by and under the exclusive control of the ceding
	insurer or, in the case of a trust, held in a qualified United
	States financial institution that has been granted the authority to
	operate with fiduciary powers; and
	(2)  may be in the form of:
	(A)  cash;
	(B)  securities that[:
	[(i)     are readily marketable over a national
	exchange;
	[(ii)     have a maturity date of not later than
	one year;
	[(iii)]  are listed by the Securities
	Valuation Office of the National Association of Insurance
	Commissioners[;] and
	[(iv)]  qualify as admitted assets;
	(C)  subject to Section 492.105, a clean,
	irrevocable, unconditional letter of credit, issued or confirmed by
	a qualified United States financial institution that has been
	determined by the commissioner or the Securities Valuation Office
	of the National Association of Insurance Commissioners to meet the
	standards of financial condition and standing that are considered
	necessary and appropriate to regulate the quality of financial
	institutions whose letters of credit will be acceptable to the
	commissioner; or
	(D)  another form of security acceptable to the
	commissioner.
	SECTION 2.  Section 493.104(b), Insurance Code, is amended
	to read as follows:
	(b)  The funds held as security:
	(1)  must be held in the United States subject to
	withdrawal solely by and under the exclusive control of the ceding
	insurer or, in the case of a trust, held in a qualified United
	States financial institution that has been granted the authority to
	operate with fiduciary powers; and
	(2)  may be in the form of:
	(A)  cash;
	(B)  securities that[:
	[(i)     are readily marketable over a national
	exchange;
	[(ii)     have a maturity date of not later than
	one year;
	[(iii)]  are listed by the Securities
	Valuation Office of the National Association of Insurance
	Commissioners[;] and
	[(iv)]  qualify as admitted assets;
	(C)  subject to Section 493.105, a clean,
	irrevocable, unconditional letter of credit, issued or confirmed by
	a qualified United States financial institution that has been
	determined by the commissioner or the Securities Valuation Office
	of the National Association of Insurance Commissioners to meet the
	standards of financial condition and standing that are considered
	necessary and appropriate to regulate the quality of financial
	institutions whose letters of credit will be acceptable to the
	commissioner; or
	(D)  another form of security acceptable to the
	commissioner.
	SECTION 3.  This Act applies to funds held as security on or
	after the effective date of this Act.
	SECTION 4.  This Act takes effect September 1, 2015.