Bill Text: TX SB2179 | 2017-2018 | 85th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the applicability of certain insurance laws to certain farm mutual insurance companies.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2017-05-23 - Placed on General State Calendar [SB2179 Detail]
Download: Texas-2017-SB2179-Engrossed.html
Bill Title: Relating to the applicability of certain insurance laws to certain farm mutual insurance companies.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2017-05-23 - Placed on General State Calendar [SB2179 Detail]
Download: Texas-2017-SB2179-Engrossed.html
By: Taylor of Galveston | S.B. No. 2179 |
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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, Insurance Code, is amended by | ||
amending Subsection (b) and adding Subsection (c) 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; [ |
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(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 is acting as a fronting insurer. | ||
(c) In this section, "fronting insurer" means a farm mutual | ||
insurance company: | ||
(1) issuing an insurance policy that is the result of: | ||
(A) marketing by an insurer not affiliated with | ||
the farm mutual insurance company; | ||
(B) an application submitted by a consumer to an | ||
insurer not affiliated with the farm mutual insurance company; or | ||
(C) an agreement with an insurer that is not a | ||
farm mutual insurance company solely for the purpose of being | ||
regulated under Chapter 911; or | ||
(2) that cedes 85 percent or more of the farm mutual | ||
insurance company's direct written premium to one or more | ||
nonaffiliated reinsurers. | ||
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 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 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 and 252.005, Insurance | ||
Code, as amended by this Act, do not affect tax liability accruing | ||
before the 2017 calendar year. 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 immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2017. |