| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to policyholder approval for certain windstorm and hail |
|
|
insurance rate changes. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter H, Chapter 2210, Insurance Code, is |
|
|
amended by adding Section 2210.3591 to read as follows: |
|
|
Sec. 2210.3591. POLICYHOLDER APPROVAL REQUIRED FOR CERTAIN |
|
|
RATE CHANGES. (a) The board of directors may not approve a rate |
|
|
that reflects an average rate change that is more than five percent |
|
|
higher than the rate in effect on the date the board proposes the |
|
|
rate unless the proposed rate change has been approved by a majority |
|
|
of the policyholders of the association. |
|
|
(b) The commissioner shall establish the procedure by which |
|
|
policyholders are notified of and vote on a proposed rate change |
|
|
under this section. |
|
|
SECTION 2. Not later than January 1, 2024, the commissioner |
|
|
of insurance shall adopt rules necessary to implement Section |
|
|
2210.3591, Insurance Code, as added by this Act. |
|
|
SECTION 3. The change in law made by this Act applies only |
|
|
to a rate approved by the board of directors of the Texas Windstorm |
|
|
Insurance Association on or after January 1, 2024. |
|
|
SECTION 4. This Act takes effect September 1, 2023. |