Bill Text: TX HB3673 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to an exemption for certain life insurance companies regarding the valuation of reserves.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2023-06-11 - Effective on 9/1/23 [HB3673 Detail]
Download: Texas-2023-HB3673-Enrolled.html
H.B. No. 3673 |
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relating to an exemption for certain life insurance companies | ||
regarding the valuation of reserves. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 425.073(d), Insurance Code, is amended | ||
to read as follows: | ||
(d) The valuation manual must specify: | ||
(1) the minimum valuation standards for and | ||
definitions of the policies or contracts subject to Section | ||
425.0535, including: | ||
(A) the commissioner's reserve valuation method | ||
for life insurance contracts subject to Section 425.0535; | ||
(B) the commissioner's annuity reserve valuation | ||
method for annuity contracts subject to Section 425.0535; and | ||
(C) the minimum reserves for all other policies | ||
or contracts subject to Section 425.0535; | ||
(2) the policies or contracts that are subject to the | ||
requirements of a principle-based valuation under Section 425.074 | ||
and the minimum valuation standards consistent with those | ||
requirements, including: | ||
(A) the requirements for the format of reports to | ||
the commissioner under Section 425.074(b)(3), which must include | ||
the information necessary to determine if a valuation is | ||
appropriate and in compliance with this subchapter; | ||
(B) the assumptions prescribed for risks over | ||
which the company does not have significant control or influence; | ||
and | ||
(C) the procedures for corporate governance and | ||
oversight of the actuarial function, and a process for appropriate | ||
waiver or modification of the procedures; | ||
(3) the policies that are not subject to a | ||
principle-based valuation under Section 425.074; | ||
(4) the data and form of data required under Section | ||
425.075, to whom the data must be submitted, and other desired | ||
requirements, including requirements concerning data analyses and | ||
reporting of analyses; | ||
(5) other requirements, including requirements | ||
relating to reserve methods, models for measuring risk, generation | ||
of economic scenarios, assumptions, margins, use of company | ||
experience, disclosure, certification, reports, actuarial opinions | ||
and memorandums, transition rules, and internal controls; and | ||
(6) an exemption that allows certain [ |
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to value reserves based on an exception from certain requirements | ||
of this section and Section 425.074[ |
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SECTION 2. Section 425.073(e), Insurance Code, is repealed. | ||
SECTION 3. This Act takes effect September 1, 2023. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3673 was passed by the House on April | ||
28, 2023, by the following vote: Yeas 135, Nays 9, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3673 was passed by the Senate on May | ||
16, 2023, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |