By Eiland                                              H.B. No. 979
         77R3217 PB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to models used in conjunction with a hearing before the
 1-3     Texas Department of Insurance relating to windstorm insurance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article 21.49, Insurance Code, is amended by
 1-6     adding Section 9B to read as follows:
 1-7           Sec. 9B.  REQUIREMENTS FOR USE OF MODELS RELATING TO
 1-8     WINDSTORM INSURANCE.  (a)  In this section, "model" means a
 1-9     computer model, statistical model, or other model used to predict:
1-10                 (1)  when a windstorm may occur;
1-11                 (2)  how much damage, including financial damage, a
1-12     windstorm may cause based on the intensity of the storm; and
1-13                 (3)  other analogous factors.
1-14           (b)  A model used in a hearing before the department under
1-15     this Act relating to windstorm insurance must meet the requirements
1-16     of this section.
1-17           (c)  Each person who proposes to use a model in a hearing
1-18     before the department regarding windstorm insurance issues shall
1-19     present to the department, in the format prescribed by the
1-20     department, the following information:
1-21                 (1)  a detailed description of the facts and data
1-22     sources used to prepare the model;
1-23                 (2)  the assumptions made in preparing the model; and
1-24                 (3)  each methodology, formula, and other scientific
 2-1     analysis that is:
 2-2                       (A)  used in the design of the model; and
 2-3                       (B)  necessary to interpret the results predicted
 2-4     by the model.
 2-5           (d)  The department shall make the information provided under
 2-6     Subsection (c) of this section available, on request, to any person
 2-7     living in a catastrophe area who may be affected by the application
 2-8     of the model to the determination of insurance premium rates under
 2-9     this Act.
2-10           (e)  The commissioner may adopt rules as necessary to
2-11     implement this section.
2-12           SECTION 2.  This Act takes effect September 1, 2001.