HBA-TBM H.B. 1495 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1495
By: Farabee
Insurance
7/3/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, state law provided that in the event of a
merger, acquisition or total assumption of reinsurance among or between
insurers, insurance premium tax credits for guaranty fund assessments could
not be transferred or assigned among or between insurers.  House Bill 1495
allows members of the Life, Accident, Health and Hospital Service Industry
Guaranty Association to take a premium tax credit for assessments paid to
the association.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1495 amends the Insurance Code to set forth provisions relating
to available credit that may be used to offset premium tax.  A member
insurer may transfer or assign credit if a merger, acquisition or total
assumption of reinsurance among or between the insurers occurs or the
commissioner of insurance by order approves the transfer or assignment.
Not later than November 1 or the 60th day after the date of an assignment
or transfer, whichever is later, each member insurer is required to report
on a form prescribed by the comptroller the assignment or transfer to the
comptroller.  The bill requires a member insurer to provide with the report
any documents from the commissioner that show approval of the assignment or
transfer.   

EFFECTIVE DATE

September 1, 2001.