Bill Text: TX HB3545 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the applicability of certain insurance laws to certain farm mutual insurance companies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-22 - Referred to Insurance [HB3545 Detail]
Download: Texas-2021-HB3545-Introduced.html
| 87R3672 RDS-F | ||
| By: Frullo | H.B. No. 3545 | |
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| relating to the applicability of certain insurance laws to certain | ||
| farm mutual insurance companies. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 221.001(b), Insurance Code, is amended | ||
| to read as follows: | ||
| (b) This chapter does not apply to: | ||
| (1) a fraternal benefit society, including a fraternal | ||
| benefit society operating under Chapter 885; | ||
| (2) a group hospital service corporation operating | ||
| under Chapter 842; | ||
| (3) a stipulated premium company operating under | ||
| Chapter 884; | ||
| (4) a mutual assessment association, company, or | ||
| corporation regulated under Chapter 887; | ||
| (5) a purely cooperative or mutual fire insurance | ||
| company carried on by its members solely for the protection of their | ||
| own property and not for profit, except as provided by Section | ||
| 221.002(b)(13); or | ||
| (6) a farm mutual insurance company operating under | ||
| Chapter 911, unless the company: | ||
| (A) insures property in more than five counties | ||
| in this state; | ||
| (B) has gross annual premium receipts greater | ||
| than $50 million; | ||
| (C) is a member of an insurance group that | ||
| includes insurance companies writing lines of insurance other than | ||
| those a farm mutual insurance company is authorized to write under | ||
| Section 911.151; or | ||
| (D) is acting as a fronting insurer. | ||
| SECTION 2. Section 252.005, Insurance Code, is amended to | ||
| read as follows: | ||
| Sec. 252.005. EXCEPTION. This chapter does not apply to: | ||
| (1) a farm mutual insurance company operating under | ||
| Chapter 911, unless the company: | ||
| (A) insures property in more than five counties | ||
| in this state; | ||
| (B) has gross annual premium receipts greater | ||
| than $50 million; | ||
| (C) is a member of an insurance group that | ||
| includes insurance companies writing lines of insurance other than | ||
| those a farm mutual insurance company is authorized to write under | ||
| Section 911.151; or | ||
| (D) is acting as a fronting insurer as defined by | ||
| Section 221.001(c); or | ||
| (2) a mutual insurance company engaged in business | ||
| under Chapter 12, Title 78, Revised Statutes, before that chapter's | ||
| repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st | ||
| Called Session, 1929, as amended by Section 1, Chapter 60, General | ||
| Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that | ||
| retains the rights and privileges under the repealed law to the | ||
| extent provided by those sections. | ||
| SECTION 3. Section 2210.006(b), Insurance Code, is amended | ||
| to read as follows: | ||
| (b) This chapter does not apply to: | ||
| (1) a farm mutual insurance company operating under | ||
| Chapter 911, unless the company: | ||
| (A) insures property in more than five counties | ||
| in this state; | ||
| (B) has gross annual premium receipts greater | ||
| than $50 million; | ||
| (C) is a member of an insurance group that | ||
| includes insurance companies writing lines of insurance other than | ||
| those a farm mutual insurance company is authorized to write under | ||
| Section 911.151; or | ||
| (D) is acting as a fronting insurer, as defined | ||
| by Section 221.001(c); | ||
| (2) a nonaffiliated county mutual fire insurance | ||
| company described by Section 912.310 that is writing exclusively | ||
| industrial fire insurance policies as described by Section | ||
| 912.310(a)(2); or | ||
| (3) a mutual insurance company or a statewide mutual | ||
| assessment company engaged in business under Chapter 12 or 13, | ||
| Title 78, Revised Statutes, respectively, before those chapters' | ||
| repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st | ||
| Called Session, 1929, as amended by Section 1, Chapter 60, General | ||
| Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that | ||
| retains the rights and privileges under the repealed law to the | ||
| extent provided by those sections. | ||
| SECTION 4. (a) Sections 221.001(b) and 252.005, Insurance | ||
| Code, as amended by this Act, do not affect tax liability accruing | ||
| before the effective date of this Act. That liability continues in | ||
| effect as if this Act had not been enacted, and the former law is | ||
| continued in effect for the collection of taxes due and for civil | ||
| and criminal enforcement of the liability for those taxes. | ||
| (b) Section 2210.006(b), Insurance Code, as amended by this | ||
| Act, applies only to participation in the Texas Windstorm Insurance | ||
| Association on or after the effective date of this Act, including | ||
| the payment of assessments the liability for which accrues on or | ||
| after that date. Participation in the Texas Windstorm Insurance | ||
| Association before the effective date of this Act, including the | ||
| payment of assessments the liability for which accrued before that | ||
| date, is governed by the law as it existed immediately before that | ||
| date, and that law is continued in effect for that purpose. | ||
| SECTION 5. This Act takes effect January 1, 2022. | ||
