By:  Jackson                                                      S.B. No. 1347


A BILL TO BE ENTITLED

AN ACT

relating to rate changes for insurance coverage written through the 
Texas Windstorm Insurance Association.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subdivision (9), Subsection (h), Section 8, 
Article 21.49, Insurance Code, is amended to read as follows:
		(9)  A rate established and authorized by the 
commissioner under this subsection may not reflect an average rate 
change that is more than 10 percent higher or lower than the rate 
for commercial or 10 percent higher or lower than the rate for 
noncommercial windstorm and hail insurance in effect on the date 
the filing is made.  The rate may not reflect a rate change for an 
individual rating class that is 15 percent higher or lower than the 
rate for that individual class in effect on the date the filing is 
made.  The commissioner may, after notice and hearing, suspend this 
subdivision upon a finding that a catastrophe loss or series of 
occurrences resulting in losses in the catastrophe area justify a 
need to assure rate adequacy in the catastrophe area and also 
justify a need to assure availability of insurance outside the 
catastrophe area.  [This subdivision expires December 31, 2005.]
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.