Bill: HB 1689, 87(R) - 2021

Bill Caption

Relating to credit for reinsurance governed by certain covered agreements and ceded to certain assuming insurers.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

HB 1689 would make a variety of changes to the Insurance Code to be in conformity with federal law with respect to re.

HB 1689 would allow credit for reinsurance ceded, as an asset or as a deduction from liability if the reinsurance is ceded to an eligible assuming insurer as defined by the bill.

HB1689 would require an eligible assuming insurer to have its principal office located outside the US or depending on the agreement outside the US and a member of the EU or a jurisdiction located in the US that meets the requirements for accreditation under the National Association of Insurance Commissioners financial regulation standards and accreditation program.

Vote Recommendation Notes

Texas Action is neutral on HB 1689. We are generally opposed to adding new regulations on already heavily regulated industries, however we recognize that this legislation is designed to bring Texas into conformity with federal law and that failure to do so would result in federal preemption. It is preferable to have the legislature make these changes now rather than to have federal agencies intervene in Texas regulatory affairs later. 

Source URL (retrieved on 04/24/2024 10:04 AM): http://reports.texasaction.com/bill/87r/hb1689?print_view=true