By: Eiland H.B. No. 3967
 
 
A BILL TO BE ENTITLED
AN ACT
relating to establishing insurance eligibility requirements for
property located in first tier coastal counties.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Subtitle D, Title 10, Insurance Code, is amended
by adding Chapter 2008 to read as follows:
CHAPTER 2008.  ELIGIBILITY FOR WINDSTORM AND HAIL INSURANCE.
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec. 2008.001.  DEFINITIONS.  When used in this chapter:
             (1)  "Association" means the Texas Windstorm Insurance
Association established under Chapter 2210.
             (2)  "First tier coastal county" means those counties
identified as first tier coastal counties in Section 2210.003.
       Sec. 2008.002.  APPLICABILITY OF CHAPTER TO CERTAIN
INSURERS.  (a)  Except as provided by Subsection (b), this chapter
applies to:
             (1)  each insurer authorized to engage in the business
of property insurance in this state, including a county mutual
insurance company, a Lloyd's plan, and a reciprocal or
interinsurance exchange;
             (2)  the association; and
             (3)  a county mutual fire insurance company described
by Section 912.310;
       (b)  This chapter does not apply to:
             (1)  a farm mutual insurance company operating under
Chapter 911; or
             (2)  a mutual insurance company or a statewide mutual
assessment company engaged in business under Chapter 12 or 13,
Title 78, Revised Statutes, respectively, before those chapters' 
repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st
Called Session, 1929, as amended by Section 1, Chapter 60, General
Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that
retains the rights and privileges under the repealed law to the
extent provided by those sections.
       (c)  The commissioner by rule shall establish an
implementation schedule for this chapter such that only the 10
largest groups writing residential property insurance or
commercial property insurance as determined by net direct written
premium for the calendar year 2007, shall be required to comply with
this chapter on and after January 1, 2009, and that all insurers
shall comply with this chapter on and after January 1, 2010.
       Sec. 2008.003.  APPLICATION TO PROPERTY.  This chapter
applies to residential and commercial property located in a first
tier coastal county that is the subject of construction,
remodeling, enlargement, re-roofing, or repair, or being added on
to on or after January 1, 2009.
SUBCHAPTER B.  ELIGIBILITY FOR INSURANCE
       Sec. 2008.051  ELIGIBILITY REQUIREMENTS.  Notwithstanding
Chapter 2210 and Chapter 2211 or other law, to be considered
insurable property eligible for windstorm and hail insurance
coverage from an insurer that is subject to this chapter, a property
that is subject to this chapter must be inspected and determined to
be in compliance with the applicable building code that has been
adopted by the commissioner under Sections 2210.251 and 2210.252,
including all amendments, as of the date of the inspection.
       Sec. 2008.052.  CERTIFICATE.  (a)  An insurer shall issue a
certificate if the property is inspected and determined to be in
compliance with Section 2008.051.
       (b)  A certificate issued under this chapter shall remain
valid until:
             (1)  the property has been the subject of construction,
remodeling, enlargement, re-roofing, or repair or been added on to
since the date on the certificate; or
             (2)  the certificate has been invalidated by the
commissioner.
       Sec. 2008.053.  RULES.  The commissioner shall adopt rules
to implement this chapter, including establishing the manner and
timing of the inspection the insurer is required to perform,
inspector qualifications, inspection fees, acceptance of
inspection certificates, and reinspections requirements.
       SECTION 2.  Chapter 2210, Insurance Code, is amended by
adding Section 2210.2511 to read as follows:
       Sec. 2210.2511.  ELIGIBILITY REQUIREMENTS.  (a)  
Notwithstanding Section 2210.251, to be considered insurable
property eligible for windstorm and hail insurance coverage from
the association, a structure that is constructed, remodeled,
enlarged, re-roofed, or repaired or to which additions are made on
or after January 1, 2011, must be located in a jurisdiction that has
adopted the current applicable windstorm building code standards as
adopted by the commissioner as specified in Sections 2210.251 and
2210.252, including all amendments, for all construction,
alteration, addition, remodeling, enlargement, re-roofing, and
repair of residential and commercial structures located in the
jurisdiction.
       (b)  The commissioner may adopt rules for eligibility in the
association for persons with an insurable interest in property
located in jurisdictions that are not in compliance with Subsection
(a).  Those requirements may differ from and exceed other
eligibility requirements under this chapter, including:
             (1)  rates;
             (2)  inspection requirements; and
             (3)  other requirements the commissioner determines
are appropriate.
       SECTION 3.  Section 941.003, Insurance Code, is amended by
adding Subsection (e) to read as follows:
       (e)  A Lloyd's plan is subject to Chapter 2008, as provided
by that chapter.
       SECTION 4.  Section 942.003, Insurance Code, is amended by
adding Subsection (f) to read as follows:
       (f)  An exchange is subject to Chapter 2008, as provided by
that chapter.
       SECTION 5.  This Act takes effect September 1, 2007.