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A BILL TO BE ENTITLED
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AN ACT
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relating to assessment of a premium surcharge by the Texas |
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Windstorm Insurance Association for coverage of improvements to |
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certain commercial structures. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 2210, Insurance Code, is |
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amended by adding Section 2210.258 to read as follows: |
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Sec. 2210.258. SURCHARGE FOR CERTAIN NONCOMPLIANT |
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CONSTRUCTION. (a) Notwithstanding any other provision of this |
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chapter, a person may obtain windstorm and hail insurance coverage |
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through the association as provided by this section for |
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improvements to a commercial structure and property located inside |
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the structure even though: |
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(1) the structure has not been inspected for |
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compliance with the plan of operation in accordance with Section |
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2210.251(a); and |
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(2) a certificate of compliance has not been issued on |
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the structure in accordance with Section 2210.251(f). |
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(b) An applicant for coverage from the association or a |
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policyholder of the association under Subsection (a) is subject to |
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a premium surcharge for insurance coverage obtained through the |
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association. The commissioner shall set the surcharge, after |
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notice and a hearing, in an amount not less than an amount equal to |
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10 percent of the premium that would be assessed if the structure |
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were in compliance. |
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(c) A premium surcharge collected under this section shall |
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be deposited in the catastrophe reserve trust fund under Subchapter |
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J. |
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(d) A premium surcharge under this section is a separate |
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charge in addition to the premiums collected and is not subject to |
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premium tax or commissions. Failure to pay the surcharge by a |
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policyholder constitutes failure to pay a premium for purposes of |
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policy cancellation. |
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(e) The commissioner shall adopt rules as necessary to |
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implement this section. |
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SECTION 2. This Act applies only to an insurance policy |
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delivered, issued for delivery, or renewed by the Texas Windstorm |
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Insurance Association on or after January 1, 2010. A policy |
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delivered, issued for delivery, or renewed before January 1, 2010, |
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is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |