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Senate Bill 1702 |
Senate Author: Taylor et al. |
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Effective: 6-14-13 |
House Sponsor: Bonnen, Dennis |
State law requires a structure to obtain a certificate of compliance in order to qualify for coverage through the Texas Windstorm Insurance Association (TWIA). However, previous law authorized coverage to continue for a noncompliant structure that was insured by TWIA as of September 1, 2009, subject to inspection requirements for all construction, alteration, remodeling, enlargement, and repair of, or addition to, a structure that was begun on or after June 19, 2009, and required a 15 percent premium surcharge for such a noncompliant structure. Senate Bill 1702 amends the Insurance Code to instead authorize insurance coverage for any noncompliant residential structure to be issued or renewed through TWIA, subject to the same inspection and premium surcharge requirements, until December 31, 2015. The bill repeals a provision establishing certain alternative certification procedures.
Senate Bill 1702 authorizes TWIA to insure a residential structure constructed, altered, remodeled, enlarged, repaired, or added to, on or after June 19, 2009, that is not in compliance with the applicable building code standards as set forth in TWIA's plan of operation, provided that the structure had been insured on or after that date by an insurer in the private market who canceled or nonrenewed the insurance coverage of the structure before December 31, 2015; the applicant provides to TWIA proof of the private coverage's cancellation or nonrenewal; and no construction, alteration, remodeling, enlargement, or repair of, or addition to, the structure occurred after cancellation or nonrenewal of the coverage and before submission of an application for coverage through TWIA. The bill sets out provisions relating to the amount of the premium and annual premium surcharge that TWIA is required to charge for a policy insuring such a noncompliant residential structure.
Senate Bill 1702 prohibits TWIA from issuing or renewing insurance coverage for a structure on and after December 31, 2015, unless the structure complies with the applicable building code standards in effect on the date the construction, alteration, remodeling, enlargement, or repair of, or addition to, the structure begins.