|
|
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retains the rights and privileges under the repealed law to the |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. |