Bill Text: TX HB2839 | 2023-2024 | 88th Legislature | Enrolled

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Bill Title: Relating to a liquidity stress test for certain insurance companies.

Spectrum: Bipartisan Bill

Status: (Passed) 2023-06-13 - Effective on 9/1/23 [HB2839 Detail]

Download: Texas-2023-HB2839-Enrolled.html

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H.B. No. 2839

AN ACT
relating to a liquidity stress test for certain insurance
companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 823, Insurance Code, is
amended by adding Section 823.0596 to read as follows:
Sec. 823.0596. LIQUIDITY STRESS TEST. (a) In this section:
(1) "Liquidity stress test framework" means an
evidence-based analysis that aims to capture the impact on
financial markets of aggregate asset sales of certain insurers
under various liquidity stress scenarios.
(2) "Scope criteria" means the designated exposure
bases, including minimum magnitudes of the bases for a specified
data year, adopted by the commissioner by rule under Subsection (e)
to establish a preliminary list of insurers included in the
liquidity stress test framework for that data year.
(3) "Ultimate controlling person" has the meaning
assigned by Section 823.055.
(b) The ultimate controlling person of an insurer shall file
the insurer's results of a specific year's liquidity stress test
performed using the liquidity stress test framework adopted by the
commissioner by rule under Subsection (e) if:
(1) this state is the lead state of the insurer's
group; and
(2) the insurer or the insurer's group meets the scope
criteria.
(c) The filing must be made on the reporting template for
the relevant year adopted by the commissioner by rule under
Subsection (e).
(d) The commissioner may exempt from the filing requirement
for a data year an insurer described by Subsection (b) after the
commissioner consults with other state insurance commissioners
regarding the impact that exempting the insurer may have on the
aggregation of liquidity stress test results filed by other
insurers with those states.
(e) The commissioner by rule shall adopt a liquidity stress
test framework, including scope criteria and reporting templates,
consistent with the framework published by the National Association
of Insurance Commissioners to facilitate the aggregation of results
from the liquidity stress test filed with this and other states.
(f) The commissioner shall collect the results filed under
Subsection (b) and report them to the National Association of
Insurance Commissioners in a manner that facilitates the
aggregation of other insurers' results filed with this and other
states.
(g) In addition to the confidentiality protections under
Section 823.011:
(1) a filing required by Subsection (b) in the
possession or control of the department that is obtained by,
created by, or disclosed to the commissioner or any other person,
including the National Association of Insurance Commissioners, is
recognized by this state as being proprietary and to contain trade
secrets; and
(2) the commissioner and any other person, including
the National Association of Insurance Commissioners, who receives a
filing required by Subsection (b) may not testify or be required to
testify in any private civil action concerning that filing.
SECTION 2. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2839 was passed by the House on May 2,
2023, by the following vote: Yeas 143, Nays 1, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2839 was passed by the Senate on May
24, 2023, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor