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By: Middleton |
S.B. No. 1393 |
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(In the Senate - Filed March 1, 2023; March 16, 2023, read |
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first time and referred to Committee on Business & Commerce; |
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April 28, 2023, reported adversely, with favorable Committee |
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Substitute by the following vote: Yeas 11, Nays 0; April 28, 2023, |
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sent to printer.) |
| Click here to see the committee vote |
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COMMITTEE SUBSTITUTE FOR S.B. No. 1393 |
By: Middleton |
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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 residential properties in the area surrounding, but |
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not located more than four miles beyond, the Texas Windstorm |
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Insurance Association catastrophe area designated under Section |
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2210.005, an offer of coverage for the property through the |
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voluntary market at a cost that exceeds 110 percent of the cost for |
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an association policy providing substantially equivalent coverage |
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of residential property with similar rating characteristics, |
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including size, elevation, age, and construction standards, is |
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considered a declination for purposes of establishing eligibility |
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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. |
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