Bill Text: TX HB1047 | 2013-2014 | 83rd Legislature | Enrolled

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Bill Title: Relating to the regulation of certain surety companies.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2013-06-14 - Effective on 9/1/13 [HB1047 Detail]

Download: Texas-2013-HB1047-Enrolled.html

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H.B. No. 1047

AN ACT
relating to the regulation of certain surety companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 221.002(c), Insurance Code, is amended
to read as follows:
(c) The following premium receipts are not included in
determining an insurer's taxable premium receipts:
(1) premium receipts received from the business of
title insurance;
(2) premium receipts received from the business of
life insurance, personal accident insurance, life and accident
insurance, or health and accident insurance for profit, written by
a life insurance company, life and accident insurance company,
health and accident insurance company, or for mutual benefit or
protection in this state;
(3) premium receipts received from another authorized
insurer for reinsurance;
(4) returned premiums and dividends paid to
policyholders; [and]
(5) premiums excluded by another law of this state;
and
(6) premiums or service fees retained by a bail bond
surety licensed under Chapter 1704, Occupations Code, or by a
property and casualty agent in connection with the execution or
delivery of a bail bond as defined by Section 1704.001, Occupations
Code.
SECTION 2. Subchapter E, Chapter 3503, Insurance Code, is
amended by adding Sections 3503.202, 3503.203, and 3503.204 to read
as follows:
Sec. 3503.202. UNEARNED PREMIUM RESERVE FOR BAIL BOND NOT
REQUIRED. A surety company is not required to maintain an unearned
premium reserve for a bail bond, as defined by Section 1704.001,
Occupations Code, executed or delivered by the company.
Sec. 3503.203. DIRECT WRITTEN PREMIUM CALCULATION. Direct
written premium reported by a surety company in a financial
statement filed with the department may be calculated excluding any
premiums or service fees retained by a bail bond surety licensed
under Chapter 1704, Occupations Code, or by a property and casualty
agent in connection with the execution or delivery of a bail bond as
defined by Section 1704.001, Occupations Code.
Sec. 3503.204. DISCLOSURE REQUIREMENTS. A surety company
that executes or delivers in this state a bail bond as defined by
Section 1704.001, Occupations Code, shall disclose in the company's
financial statement filed with the department the aggregate amount
of:
(1) gross premium for bail bond business reported in
the company's surety line of business;
(2) premium or service fees retained by the bail bond
surety or agent; and
(3) premium for bail bond business received by the
company, net of amounts retained by the bail bond surety or agent.
SECTION 3. This Act takes effect September 1, 2013.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1047 was passed by the House on May 2,
2013, by the following vote: Yeas 146, Nays 0, 4 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1047 was passed by the Senate on May
20, 2013, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor