85R31312 SCL-F     By: Taylor of Galveston S.B. No. 1449     (Bonnen of Galveston)     Substitute the following for S.B. No. 1449:  No.       A BILL TO BE ENTITLED   AN ACT   relating to an insurer's compliance with National Association of   Insurance Commissioners requirements.          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; INTERIM RULES; REPORT.   (a)  Except as provided by Subsection (b) or (c) or 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:                (1)  application of the rule, regulation, directive, or   standard is expressly authorized by statute; or                (2)  a statute authorizes the commissioner to adopt   rules consistent with the rule, regulation, directive, or standard    [and approved by the commissioner].          (b)  Subsection (a) does not apply to:                (1)  any statute that is based on or substantially   similar to a National Association of Insurance Commissioners model   law or regulation;                (2)  Sections 401.010 and 421.001(c);                (3)  securities valuations by the Securities Valuation   Office of the National Association of Insurance Commissioners under   this code;                (4)  mortality and reserve tables under Chapters 425   and 1105;                (5)  financial reporting under Chapter 443;                (6)  fraud reporting under Chapters 701 and 1111A;                (7)  actuarial standards for reserve reporting under   Chapters 401, 802, and 2551;                (8)  the Own Risk and Solvency Assessment Guidance   Manual and confidentiality agreements under Chapter 830; or                (9)  the Interstate Insurance Product Regulation   Compact under Chapter 5001.          (c)  The commissioner may adopt an interim 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.          (d)  A substantive rule adopted under Subsection (c) shall   remain in effect only until 30 days following the end of the next   session of the legislature unless a law is enacted that authorizes   the subject matter of the rule. If a law is enacted that authorizes   the subject matter of the rule, the rule will continue in effect.          (e)  Not later than December 31 of each even-numbered year,   the department shall submit to the standing committees of the   senate and house of representatives with primary jurisdiction over   the department a written report that includes:                (1)  the specific statutes in this code and rules   adopted by the commissioner that are based on National Association   of Insurance Commissioners model laws or regulations;                (2)  statutory changes that may be necessary to   maintain the department's accreditation; and                (3)  the most recent standards the National Association   of Insurance Commissioners has adopted or published that are   necessary to maintain the department's accreditation.          SECTION 2.  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.