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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the Texas Windstorm Insurance |
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Association to raise premium rates on association policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.351, Insurance Code, is amended by |
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amending Subsection (d) and adding Subsection (f) to read as |
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follows: |
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(d) The association may use a rate filed by the association |
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without prior commissioner approval if: |
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(1) the filing is made not later than the 30th day |
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before the date of any use or delivery for use of the rate; |
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(2) the filed rate does not exceed [105 percent of] the |
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rate in effect on the date on which the filing is made; and |
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(3) [the filed rate does not reflect a rate change for |
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an individual rating class that is 10 percent higher than the rate |
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in effect for that rating class on the date on which the filing is |
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made; and |
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[(4)] the commissioner has not disapproved the filing |
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in writing, advising of the reasons for the disapproval and the |
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criteria the association is required to meet to obtain approval. |
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(f) The association may not file a rate under this section |
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that exceeds the rate in effect on the date on which the filing is |
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made unless two-thirds of the board of directors votes to approve |
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the rate. |
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SECTION 2. Section 2210.352, Insurance Code, is amended by |
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amending Subsection (a-1) and adding Subsection (a-3) to read as |
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follows: |
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(a-1) The association may use a rate filed by the |
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association under this section without prior commissioner approval |
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if: |
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(1) the filing is made not later than the 30th day |
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before the date of any use or delivery for use of the rate; and |
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(2) the filed rate does not exceed [105 percent of] the |
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rate used by the association in effect on the date on which the |
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filing is made[; and |
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[(3) the filed rate does not reflect a rate change for |
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an individual rating class that is 10 percent higher than the rate |
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in effect for that rating class on the date on which the filing is |
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made]. |
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(a-3) The association may not file a rate under this section |
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that exceeds the rate in effect on the date on which the filing is |
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made unless two-thirds of the board of directors votes to approve |
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the rate. |
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SECTION 3. The change in law made by this Act applies only |
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to a rate filed by the Texas Windstorm Insurance Association with |
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the Texas Department of Insurance on or after the effective date of |
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this Act. A rate filed with the Texas Department of Insurance |
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before the effective date of this Act is governed by the law as it |
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existed immediately before that date, and that law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |