Bill Text: TX HB3106 | 2013-2014 | 83rd Legislature | Enrolled


Bill Title: Relating to compensatory payments and reinsurance agreements made in connection with the issuance of title insurance.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2013-06-14 - Effective on 9/1/13 [HB3106 Detail]

Download: Texas-2013-HB3106-Enrolled.html
 
 
  H.B. No. 3106
 
 
 
 
AN ACT
  relating to compensatory payments and reinsurance agreements made
  in connection with the issuance of title insurance.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 2502, Insurance Code, is
  amended by adding Section 2502.057 to read as follows:
         Sec. 2502.057.  CERTAIN COMPENSATORY PAYMENTS RELATED TO
  CERTAIN ELECTRIC ENERGY PROJECTS PERMITTED. (a) This section
  applies with respect to a utility project that is:
               (1)  designed to produce, generate, transmit,
  distribute, sell, or furnish electric energy; and
               (2)  valued on completion at more than $25 million.
         (b)  A payment for furnishing title evidence for the issuance
  of a title insurance policy related to a project described by
  Subsection (a) may be:
               (1)  a flat fee or fee calculated on an hourly basis
  that:
                     (A)  is payable on the date the title evidence is
  furnished; and
                     (B)  does not exceed $25,000; or
               (2)  a portion of the title insurance premium:
                     (A)  based on the percentage established by the
  commissioner for payment by a title insurance company, title
  insurance agent, or direct operation for services performed by
  another title insurance company, title insurance agent, or direct
  operation; and
                     (B)  payable on the date of the issuance of the
  policy for which the evidence is furnished.
         (c)  The payment must be:
               (1)  made by the proposed insured to the title
  insurance company, title insurance agent, or direct operation that
  furnishes the title evidence; and
               (2)  credited against the title insurance premium
  charged for the issuance of the title insurance policy for which the
  evidence is furnished.
         (d)  Nothing in this section may be construed to allow the
  payment of an amount in violation of the premium rates promulgated
  or the division of premium established by the commissioner.
         (e)  This section does not apply to a payment to a reinsurer
  for the assumption of reinsurance described by Subchapter G,
  Chapter 2551.
         SECTION 2.  Section 2551.305, Insurance Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  Notwithstanding any other provision of this subchapter,
  a title insurance company may obtain reinsurance by a reinsurance
  treaty or other reinsurance agreement from an assuming insurer with
  a financial strength rating of B+ or better from the A. M. Best
  Company that meets the requirements of Subchapter C, Chapter 493,
  if the title insurance company has provided the department with an
  affidavit that:
               (1)  contains facts that demonstrate the title
  insurance company was unable after diligent effort to procure
  sufficient reinsurance from another title insurance company; and
               (2)  states the terms of the reinsurance treaty or
  other reinsurance agreement that the title insurance company will
  obtain.
         SECTION 3.  The change in law made by Section 2502.057,
  Insurance Code, as added by this Act, applies only to a payment for
  title evidence furnished on or after the effective date of this Act.
  A payment for title evidence furnished before the effective date of
  this Act is governed by the law as it existed immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 4.  The change in law made by Section 2551.305(e),
  Insurance Code, as added by this Act, applies only to reinsurance
  obtained on or after the effective date of this Act. Reinsurance
  obtained before the effective date of this Act is governed by the
  law as it existed immediately before the effective date of this Act,
  and that law is continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3106 was passed by the House on May 2,
  2013, by the following vote:  Yeas 147, Nays 0, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 3106 on May 22, 2013, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 3106 on May 26, 2013, by the following vote:  Yeas 146,
  Nays 0, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3106 was passed by the Senate, with
  amendments, on May 20, 2013, by the following vote:  Yeas 30, Nays
  0, 1 present, not voting
  ; at the request of the House, the Senate
  appointed a conference committee to consider the differences
  between the two houses; and that the Senate adopted the conference
  committee report on H.B. No. 3106 on May 26, 2013, by the following
  vote:  Yeas 30, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor       
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