By Uher H.B. No. 2736
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to risk pools established by political subdivisions to
1-3 provide liability coverage.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 119, Local Government Code, is amended by
1-6 adding Sections 119.012 and 119.013 to read as follows:
1-7 Sec. 119.012. NOTICE OF CANCELLATION OR CHANGE OF COVERAGE.
1-8 (a) Except as provided by Subsection (b), cancellation of coverage
1-9 for liability provided through the pool under this chapter other
1-10 than cancellation for nonpayment of contribution, or any change to
1-11 the terms or conditions of the coverage, may not take effect before
1-12 the 60th day after the earlier of the date that written notice of
1-13 the change is:
1-14 (1) delivered to the county judge or presiding officer
1-15 of the governing body of each affected county or other political
1-16 subdivision; or
1-17 (2) mailed, by certified mail, to the county judge or
1-18 presiding officer of the governing body of each affected county or
1-19 other political subdivision.
1-20 (b) Notice is not required for cancellation or a change to
1-21 the terms or conditions of the coverage made:
1-22 (1) at the request of the affected county or other
1-23 political subdivision; or
1-24 (2) by mutual agreement of the governing body of the
2-1 affected county or other political subdivision and the pool if:
2-2 (A) the mutual agreement is evidenced by a
2-3 writing; and
2-4 (B) not later than the 72nd hour after the time
2-5 the agreement is made, and prior to formal action by the governing
2-6 body, the writing described by Paragraph (A) is provided,
2-7 electronically or by certified mail, to the county judge or
2-8 presiding officer of the governing body of the political
2-9 subdivision.
2-10 (c) The notice must be printed in at least 12-point
2-11 bold-faced type and must specify the reasons for the cancellation
2-12 or change.
2-13 (d) In the case of cancellation of the coverage, the notice
2-14 must state that, on request of the affected county or other
2-15 political subdivision, the pool shall refund to the county or
2-16 political subdivision the pro rata unearned paid contribution of
2-17 the county or political subdivision. This subsection does not
2-18 apply if the refund is paid at the time the notice is made.
2-19 Sec. 119.013. QUALIFICATIONS OF ADMINISTRATOR. The
2-20 individual responsible for administration of the pool, whether
2-21 employed by the pool or any other entity:
2-22 (1) must hold at least a bachelor's degree in a field
2-23 relating to insurance, finance, business management, or law or hold
2-24 the professional designation of:
2-25 (A) Chartered Property Casualty Underwriter
2-26 granted by the American Institute for Property and Liability
2-27 Underwriters;
3-1 (B) Certified Insurance Counselor granted by the
3-2 Society of Certified Insurance Counselors; or
3-3 (C) Associate in Risk Management granted by the
3-4 Insurance Institute of America;
3-5 (2) must have at least five years experience in
3-6 administration of risk pools, commercial insurance production or
3-7 management, or risk management; and
3-8 (3) during each calendar year, shall participate in a
3-9 minimum of 20 hours of continuing education that:
3-10 (A) is acceptable to the board; and
3-11 (B) relates to the types of coverage provided by
3-12 the pool, risk management, or administration of risk pools.
3-13 SECTION 2. This Act applies only to coverage provided under
3-14 a contract that is entered into or renewed or a policy that is
3-15 delivered, issued for delivery, or renewed on or after January 1,
3-16 1998. A contract that is entered into or renewed or a policy that
3-17 is delivered, issued for delivery, or renewed before January 1,
3-18 1998, is governed by the law as it existed immediately before the
3-19 effective date of this Act, and that law is continued in effect for
3-20 this purpose.
3-21 SECTION 3. (a) An individual responsible for administration
3-22 of the County Government Risk Management Pool under Chapter 119,
3-23 Local Government Code, is not required to satisfy the requirements
3-24 of Sections 119.013(1) and (2), Local Government Code, as added by
3-25 this Act, before January 1, 1998, or the requirements of Section
3-26 119.013(3), Local Government Code, as added by this Act, before
3-27 December 31, 1998.
4-1 (b) The change in law made by Section 119.013, Local
4-2 Government Code, as added by this Act, applies only to the
4-3 qualifications of an individual who is responsible for
4-4 administration of the risk pool under a contract entered into or
4-5 renewed on or after the effective date of this Act. The
4-6 qualifications of an individual who is responsible for
4-7 administration of the risk pool under a contract entered into or
4-8 renewed before the effective date of this Act is governed by the
4-9 law as it existed immediately before the effective date of this
4-10 Act, and that law is continued in effect for this purpose.
4-11 SECTION 4. This Act takes effect September 1, 1997.
4-12 SECTION 5. The importance of this legislation and the
4-13 crowded condition of the calendars in both houses create an
4-14 emergency and an imperative public necessity that the
4-15 constitutional rule requiring bills to be read on three several
4-16 days in each house be suspended, and this rule is hereby suspended.