Bill Text: TX HB2839 | 2023-2024 | 88th Legislature | Enrolled

Texas House Bill 2839

Bill Title: Relating to a liquidity stress test for certain insurance companies.

Spectrum: Bipartisan Bill

Status: (Passed) 2023-06-13 - Effective on 9/1/23 [HB2839 Detail]

Download: Texas-2023-HB2839-Enrolled.html



	H.B. No. 2839




	AN ACT
	relating to a liquidity stress test for certain insurance
	companies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter B, Chapter 823, Insurance Code, is
	amended by adding Section 823.0596 to read as follows:
	Sec. 823.0596. LIQUIDITY STRESS TEST. (a) In this section:
	(1) "Liquidity stress test framework" means an
	evidence-based analysis that aims to capture the impact on
	financial markets of aggregate asset sales of certain insurers
	under various liquidity stress scenarios.
	(2) "Scope criteria" means the designated exposure
	bases, including minimum magnitudes of the bases for a specified
	data year, adopted by the commissioner by rule under Subsection (e)
	to establish a preliminary list of insurers included in the
	liquidity stress test framework for that data year.
	(3) "Ultimate controlling person" has the meaning
	assigned by Section 823.055.
	(b) The ultimate controlling person of an insurer shall file
	the insurer's results of a specific year's liquidity stress test
	performed using the liquidity stress test framework adopted by the
	commissioner by rule under Subsection (e) if:
	(1) this state is the lead state of the insurer's
	group; and
	(2) the insurer or the insurer's group meets the scope
	criteria.
	(c) The filing must be made on the reporting template for
	the relevant year adopted by the commissioner by rule under
	Subsection (e).
	(d) The commissioner may exempt from the filing requirement
	for a data year an insurer described by Subsection (b) after the
	commissioner consults with other state insurance commissioners
	regarding the impact that exempting the insurer may have on the
	aggregation of liquidity stress test results filed by other
	insurers with those states.
	(e) The commissioner by rule shall adopt a liquidity stress
	test framework, including scope criteria and reporting templates,
	consistent with the framework published by the National Association
	of Insurance Commissioners to facilitate the aggregation of results
	from the liquidity stress test filed with this and other states.
	(f) The commissioner shall collect the results filed under
	Subsection (b) and report them to the National Association of
	Insurance Commissioners in a manner that facilitates the
	aggregation of other insurers' results filed with this and other
	states.
	(g) In addition to the confidentiality protections under
	Section 823.011:
	(1) a filing required by Subsection (b) in the
	possession or control of the department that is obtained by,
	created by, or disclosed to the commissioner or any other person,
	including the National Association of Insurance Commissioners, is
	recognized by this state as being proprietary and to contain trade
	secrets; and
	(2) the commissioner and any other person, including
	the National Association of Insurance Commissioners, who receives a
	filing required by Subsection (b) may not testify or be required to
	testify in any private civil action concerning that filing.
	SECTION 2. This Act takes effect September 1, 2023.


	______________________________	______________________________
	President of the Senate	Speaker of the House


	I certify that H.B. No. 2839 was passed by the House on May 2,
	2023, by the following vote: Yeas 143, Nays 1, 2 present, not
	voting.

	______________________________
	Chief Clerk of the House


	I certify that H.B. No. 2839 was passed by the Senate on May
	24, 2023, by the following vote: Yeas 31, Nays 0.

	______________________________
	Secretary of the Senate
	APPROVED: _____________________
	Date

	_____________________
	Governor