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2005 Field Alert Reports

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Advertising

Texas HB 2613	Adopts the Interstate Insurance Product Regulation Compact.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: Immediately Appears under "Advertising" and "Forms - Filings" Full Text

Annual Statements & General Financial Reporting

Texas SB 1591	Revises accountant practice requirements for certain audits of insurer financial reports.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Claims

Texas HB 204	Revises laws governing inheritance rights and adopted adults.
Report Date: 06/06/05 Enacted: 5/27/05 Effective: 9/1/05 Full Text

Credit Insurance

Texas HB 526	Removes certain limits on the amount of coverage that may be issued on a debtor's life.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: Immediately Full Text

Texas 28 TAC 1.3.FF.1.3.5001, .5002	Amends rules regarding credit life and accident and health policy definitions. Improves organization by putting all definitions into one section of the subchapter.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

Texas 28 TAC 1.3.FF.2.3.5105	Amends rules regarding credit life and accident and health policies applications and policies. Updates citations.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

Texas 28 TAC 1.3.FF.3.3.5201, .5202, .5206	Amends rules regarding credit life and accident and health policies filing and approval of forms and rates. Updates citations. Clarifies that the test of reasonableness applies to approved deviations, and that the loss ratio comparison is to be applied to rates that would exist if an approved deviation is allowed to become effective.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

Texas 28 TAC 1.3.FF.4.3.5307	Amends rules pertaining to presumptively acceptable relation of credit life insurance benefits to premiums. Strikes language from the section that is not pertinent and which could create confusion.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

Texas 28 TAC 1.3.FF.5.3.5502	Amends rules pertaining to standards of benefits for credit accident and health insurance. Updates citations.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

Texas 28 TAC 1.3.FF.6.3.5601, .5602 thru .5604, .5607, .5608, .5610	Amends rules pertaining to credit life, accident and health policies deviations procedures. Requires that a request for an approved deviation must be presented on form CI-DRF. Includes the credibility table. Updates citations.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

Texas 28 TAC 1.3.FF.9.3.5901, .5905	Amends rules regarding credit life, accident and health policies premium refunds. Updates citations.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

Texas 28 TAC 1.3.FF.2.3.5110	Repeals rule regarding credit life, accident and health policies applications and policies.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

Texas 28 TAC 1.3.FF.6.3.5603	Repeals rule regarding credit life, accident and health policies deviation procedures.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

DOI Examination - Market Conduct

Texas SB 14

Revises provisions governing property and casualty rates. Also, enacts the Insurance Market Conduct Surveillance Act. Provides that an insurer may not be compelled to disclose a self-audit document or waive any statutory or common law privilege. An insurer may, however, voluntarily disclose a document described by this subsection to the commissioner in response to any market conduct action or examination.

Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Department of Insurance

Texas HB 2017

This 600 page bill makes nonsubstantive revisions of statutes relating to the Texas Department of Insurance, the business of insurance, and certain related businesses, including conforming amendments, repeals, and penalties. This bill is not reported under all subjects to which it pertains, so READ CAREFULLY TO ASSESS IMPACT. The substantive changes include creating a class of insurance insuring against the loss of employment and allowing the group purchase of workers' compensation insurance.

Report Date: 06/27/05 Enacted: 6/17/05 Effective: 4/1/07 Full Text

Texas SB 781	Revises provisions of the Insurance Code that govern the prosecution of certain acts that constitute the unauthorized business of insurance.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: Immediately Full Text

Texas HB 2614	Relates to the applicability of certain insurance laws to Lloyd's plans and reciprocal and interinsurance exchanges.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Employment Law

Texas SB 1408	Revises law governing the review of wage claim disputes by the Texas Workforce Commission.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Financial Planning

Texas HB 1501	Relates to the authority of a guardian of the estate of a ward to make certain gifts of the ward's estate for estate planning purposes.
Report Date: 06/06/05 Enacted: 5/30/05 Effective: 9/1/05 Full Text

Forms - Filing

Texas HB 2613	Adopts the Interstate Insurance Product Regulation Compact.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: Immediately Appears under "Advertising" and "Forms - Filings" Full Text

Fraud

Texas HB 2388	Revises fraud notification requirements. Requires notification within 30 days of discovery.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Texas HB 3376	Relates to criminal offenses involving theft and fraud, to the statutes of limitation for those offenses, and to the effect of the commission of those offenses on certain license holders and applicants.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Group Insurance

Texas 28 TAC 1.3.FF.10.3.6002	Amends rules regarding the responsibilities and obligations of insurance companies and their representatives. Updates citation with regard to refunds of unearned premiums.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

Texas HB 1571	Expands the list of acceptable sources of premium for a group life insurance policy to be issued for certain employee groups.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: Immediately Full Text

Guaranty Associations

Texas HB 2883	Revises laws governing coverage under the Texas Life, Accident, and Hospital Service Insurance Guaranty Association.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Holding Companies

Texas SB 1283	Repeals an exemption under the holding company laws for each affiliate in a system if it is privately owned by not more than five security holders, each of whom is an individual.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Insolvency

Texas HB 2157	Enacts the Insurer Receivership Act. Governs the receivership of insurers in this state; provides penalties.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Investments

Texas SB 1592	Provides that the commissioner, in the commissioner's sole discretion, may require an insurer to make a deposit under this article if the commissioner determines that one of the following conditions, if not rectified, may potentially be hazardous to the insurer's policyholders, enrollees, or creditors, or to the public.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: Immediately Full Text

Pensions

United States 29 CFR Parts 4022, 4044	The Pension Benefit Guaranty Corporation's regulations on Benefits Payable in Terminated Single-Employer Plans and Allocation of Assets in Single-Employer Plans prescribe interest assumptions for valuing and paying benefits under terminating single-employer plans. This final rule amends the regulations to adopt interest assumptions for plans with valuation dates in February 2005.
Report Date: 06/27/05 Adopted: 6/15/05 Effective: 7/1/05 Full Text

Privacy

Texas SB 122	Enacts the Identity Theft Enforcement and Protection Act. Assists certain victims of identity theft; provides penalties.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Texas HB 1130	Provides that a person may not require an individual to disclose the individual's social security number to obtain goods or services from or enter into a business transaction with the person, with certain exceptions.
Report Date: 06/06/05 Enacted: 5/27/05 Effective: 9/1/05 Full Text

Producers

Texas HB 1201	Increases the number of temporary license holder an insurer may appoint from 250 to 500.
Report Date: 06/06/05 Enacted: 5/27/05 Effective: Immediately Full Text

United States 28 CFR Part 904	The Compact Council, established pursuant to the National Crime Prevention and Privacy Compact, is publishing a rule to establish criminal history record screening standards for criminal history record information received from the Interstate Identification Index (III) for authorized noncriminal justice purposes.
Report Date: 06/27/05 Adopted: 6/22/05 Effective: 7/22/05 Full Text

Producers - Continuing Education

Texas SB 265	Allows the commissioner to authorize the department to grant not more than four hours of continuing education credit to an agent who is an active member of a state or national insurance association.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Sales and Marketing

Texas HB 2565	Expands the list of items that are not considered rebates under the category of promotional and educational activities.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Texas HB 2941	Provides that if an agent, or any affiliate of an agent, receives compensation from a customer for the placement or renewal of an insurance product, other than a service fee, an application fee, or an inspection fee, the agent or the affiliate may not accept or receive any compensation from an insurer or other third party for that placement or renewal unless certain conditions are met.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Valuation - Reserves

Texas 28 TAC 1.3.Q.3.1601 thru .1608

The Department of Insurance adopts new rules concerning the submission of actuarial opinions and their supporting memoranda with the annual statements of life insurance companies. Requires all life insurance companies, with the exception of those that only do business in Texas, to provide actuarial opinion based on an asset adequacy analysis with their 2005 annual statement and thereafter. Requires the preparation of an actuarial memorandum including and asset adequacy analysis and a regulatory asset adequacy issues summary. Provides the commissioner may require a life insurance company that only does business in Texas to provide an asset adequacy analysis when he or she determines it is necessary.

Report Date: 06/27/05 Adopted: 5/31/05 Effective: 6/20/05 Full Text

Texas 28 TAC 1.3.Q.3.1601 thru .1611

The Texas Department of Insurance is repealing Sections 3.1601 - 3.1611, concerning Insurance Code Article 3.28 and the submission of actuarial opinions and their supporting memoranda with the annual statement of life insurance companies. The sections are proposed for repeal to facilitate the proposal of new Sections 3.1601 - 3.1608, concerning the submission of actuarial opinions required by Insurance Code Article 3.28. The department is proposing new Sections 3.1601 - 3.1608 which appear elsewhere in this issue of the Texas Register.

Report Date: 06/27/05 Adopted: 5/21/05 Effective: 6/20/05 Full Text