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A BILL TO BE ENTITLED
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AN ACT
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relating to eligibility for coverage by the Fair Access to |
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Insurance Requirements Plan in certain areas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2211.151, Insurance Code, is amended to |
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read as follows: |
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Sec. 2211.151. MANDATORY COVERAGE PROVIDED TO CERTAIN |
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INSUREDS. (a) The association shall make residential property |
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insurance available to each applicant in an underserved area whose |
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property is insurable in accordance with reasonable underwriting |
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standards but who, after diligent efforts, is unable to obtain |
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residential property insurance through the voluntary market, as |
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evidenced by two declinations from insurers authorized to engage in |
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the business of, and writing, residential property insurance in |
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this state. |
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(b) For an applicant owning residential property located |
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not more than four miles beyond the Texas Windstorm Insurance |
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Association catastrophe area designated under Section 2210.005, an |
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offer of coverage for the property through the voluntary market at a |
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cost that exceeds 110 percent of the cost for an association policy |
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providing equivalent coverage of residential property with similar |
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rating characteristics, including size, elevation, age, and |
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construction standards, is considered a declination for purposes of |
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establishing eligibility for coverage under Subsection (a). |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |