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 | ||
|
|
||
| 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 | ||
