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Panel advances bill to give property-casualty insurers same foreign-investment cap as life insurers
Summary
House Bill 161 would raise the permitted foreign-company investment cap for property and casualty insurers from 1% to 20%, matching the allowance for life insurers; the subcommittee approved the bill and sent it to the full Insurance Committee.
Chairman McCallum presented House Bill 161 to the Insurance Subcommittee on Wednesday, Feb. 12, proposing parity in foreign-investment allowances between life insurance companies and property-and-casualty insurers.
Chairman McCallum said life insurers currently may invest up to 20% of their holdings in foreign-owned companies, while property-and-casualty insurers in the state are limited to 1%. “If it's good for the goose, it's good for the gander,” he said, describing the bill as increasing the property-and-casualty cap to 20 percent to achieve parity with life insurers. He added that neighboring states have similar laws, according to his presentation.
No committee members posed substantive questions during the hearing. The clerk conducted a roll call that recorded aye votes from Representative Bob Freeman; Representative Youssef Hakim; Representative Renee Jones; Representative Anssavi Kumar; Representative Raper; and Chairwoman Esther Hilton Haines. The clerk announced 6 ayes and 0 nays, and the bill was advanced to the full Insurance Committee.
The transcript records no amendments, fiscal estimates, or dissent during the subcommittee stage. Sponsor asserted parity with life-insurer rules but did not provide documentation in the subcommittee hearing; the committee did not request additional materials on solvency or market impact during the session recorded in the transcript.
