Bill Text: TX SB1450 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to the regulatory authority of the commissioner of insurance and the Texas Department of Insurance.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-06-12 - Effective on 9/1/17 [SB1450 Detail]
Download: Texas-2017-SB1450-Enrolled.html
S.B. No. 1450 |
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relating to the regulatory authority of the commissioner of | ||
insurance and the Texas Department of Insurance. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 36.004, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF | ||
INSURANCE COMMISSIONERS REQUIREMENTS; RULES. (a) Except as | ||
provided by Subsection (c) and Section 36.005, the department may | ||
not require an insurer to comply with a rule, regulation, | ||
directive, or standard adopted by the National Association of | ||
Insurance Commissioners, including a rule, regulation, directive, | ||
or standard relating to policy reserves, unless application of the | ||
rule, regulation, directive, or standard is expressly authorized by | ||
statute [ |
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(b) For purposes of Subsection (a), a version of a rule, | ||
regulation, directive, or standard is expressly authorized by | ||
statute if: | ||
(1) the statute explicitly authorizes the | ||
commissioner to adopt rules consistent with the rule, regulation, | ||
directive, or standard; or | ||
(2) that version is the latest version of the rule, | ||
regulation, directive, or standard on the date that the statute was | ||
enacted. | ||
(c) The commissioner may adopt a rule to require compliance | ||
with a rule, regulation, directive, or standard adopted by the | ||
National Association of Insurance Commissioners if: | ||
(1) the commissioner finds the rule is technical or | ||
nonsubstantive in nature or necessary to preserve the department's | ||
accreditation; and | ||
(2) before the adoption of the rule, the commissioner | ||
provides the standing committees of the senate and house of | ||
representatives with primary jurisdiction over the department with | ||
written notice of the commissioner's intent to adopt the rule. | ||
SECTION 2. Subchapter A, Chapter 36, Insurance Code, is | ||
amended by adding Section 36.007 to read as follows: | ||
Sec. 36.007. RULES RELATING TO AGREEMENTS LIMITING STATE | ||
AUTHORITY TO REGULATE INSURANCE PROHIBITED; EFFECT OF AGREEMENT. | ||
(a) The commissioner may not adopt or enforce a rule that | ||
implements an interstate, national, or international agreement | ||
that: | ||
(1) infringes on the authority of this state to | ||
regulate the business of insurance in this state; and | ||
(2) was not approved by the legislature. | ||
(b) An agreement described by Subsection (a) has no effect | ||
on the authority of this state to regulate the business of insurance | ||
in this state unless the agreement is approved by the legislature. | ||
SECTION 3. Subchapter C, Chapter 551, Insurance Code, is | ||
amended by adding Section 551.1041 to read as follows: | ||
Sec. 551.1041. RULEMAKING AUTHORITY RELATING TO NOTICE OF | ||
CANCELLATION OF CERTAIN PERSONAL AUTOMOBILE INSURANCE COVERAGES. | ||
The commissioner shall exercise the commissioner's rulemaking | ||
authority to adopt rules under which an insurer that cancels a | ||
personal automobile insurance policy that provides comprehensive | ||
or collision physical damage coverage for an automobile that is | ||
subject to a purchase money lien is required to notify the | ||
lienholder, if known, that the coverage will be canceled. | ||
SECTION 4. Section 36.004, Insurance Code, as amended by | ||
this Act, applies only to a rule adopted or amended on or after the | ||
effective date of this Act. A rule adopted before the effective | ||
date of this Act and not amended on or after that date is governed by | ||
the law applicable to the rule immediately before the effective | ||
date of this Act, 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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1450 passed the Senate on | ||
May 4, 2017, by the following vote: Yeas 31, Nays 0; May 26, 2017, | ||
Senate refused to concur in House amendments and requested | ||
appointment of Conference Committee; May 27, 2017, House granted | ||
request of the Senate; May 28, 2017, Senate adopted Conference | ||
Committee Report by the following vote: Yeas 30, Nays 1. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1450 passed the House, with | ||
amendments, on May 24, 2017, by the following vote: Yeas 141, | ||
Nays 4, one present not voting; May 27, 2017, House granted request | ||
of the Senate for appointment of Conference Committee; | ||
May 28, 2017, House adopted Conference Committee Report by the | ||
following vote: Yeas 99, Nays 47, one present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |