Bills › 89th General Assembly
Relating to life insurance company or association cash reinvestments in repurchase agreements collateralized by securities, and including applicability provisions
Sponsored by the House Commerce Committee
Topics:Business & economyInsurance
Where it is now
- Done: IntroducedJanuary 13, 2021
- Done: SubcommitteeJanuary 13, 2021
- Done: House committeeJanuary 25, 2021
- Done: Passes the HouseFebruary 2, 2021
- Done: Senate committeeFebruary 10, 2021
- Done: Passes the SenateApril 7, 202144–0
- Done: To the GovernorApril 30, 2021
- Done: Signed into lawApril 30, 2021
Signed into law What’s a funnel?
What’s in it
AI summary Life insurance companies and associations would be allowed to reinvest their extra cash into different types of agreements. These new rules let them use government securities that take longer than 270 days to mature as collateral. Currently, the law only allows them to use securities that mature in less than 270 days.1
Read the official explanation
This bill allows life insurance companies and associations to reinvest cash or cash equivalent collateral for loans from securities held in their legal reserves in repurchase agreements collateralized by securities in United States government obligations maturing in 270 days or more. Under current law, all securities that collateralize repurchase agreements must mature in less than 270 days. “United States government obligations” is described in the bill. The bill applies to cash or cash equivalent reinvestments, by life insurance companies and associations, made in repurchase agreements collateralized by securities, on or after January 1, 2022.
House subcommittee
Named January 13, 2021 (as HSB 32). On January 20, 2021 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
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89th General Assembly