85R6546 BEE-F
	By: Smithee	H.B. No. 3202

	A BILL TO BE ENTITLED
	AN ACT
	relating to registration statement and reporting requirements of
	insurers in an insurance holding company system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 823.054(b), Insurance Code, is amended
	to read as follows:
	(b)  If the amount of a single transaction or the total
	amount of all transactions involving sales, purchases, exchanges,
	loans or other extensions of credit, or investments is more than
	[the lesser of] one-half of one percent of an insurer's admitted
	assets [or five percent of an insurer's surplus,] as of December 31
	of the year preceding the date of the transaction or transactions,
	the transaction or transactions, respectively, are considered to be
	material for purposes of this section.
	SECTION 2.  Section 823.0595(a), Insurance Code, is amended
	to read as follows:
	(a)  The [Except as provided by Subsections (d) and (f), the]
	ultimate controlling person, as defined by Section 823.055, of each
	insurer required to file an annual registration shall file with the
	registration an annual enterprise risk report.  The report must, to
	the best of the ultimate controlling person's knowledge, identify
	the material risks within the insurance holding company system that
	may pose enterprise risk to the insurer.  The report must be filed
	with the lead state commissioner of the insurance holding company
	system, as determined by the commissioner.  In determining the lead
	state commissioner, the commissioner shall consider the procedures
	adopted by the National Association of Insurance Commissioners.
	SECTION 3.  Sections 823.0595(d), (e), and (f), Insurance
	Code, are repealed.
	SECTION 4.  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.