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SENATE RESOLUTION
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BE IT RESOLVED by the Senate of the State of Texas, 82nd |
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Legislature, 1st Called Session, 2011, That Senate Rule 12.03 be |
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suspended in part as provided by Senate Rule 12.08 to enable the |
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conference committee appointed to resolve the differences on |
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House Bill 3 (the operation of the Texas Windstorm Insurance |
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Association, the resolution of certain disputes concerning |
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claims made to that association, and the issuance of windstorm |
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and hail insurance policies in the private insurance market by |
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certain insurers; providing penalties) to consider and take |
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action on the following matters: |
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(1) Senate Rules 12.03(1) and (3) are suspended to permit |
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the committee to change and add text on a matter which is not in |
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disagreement in added Section 2210.260(d), Insurance Code, to |
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read as follows: |
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(d) Except as provided by Sections 2210.251(d), (e), and |
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(f), a person who has an insurable interest in a residential |
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structure that is insured by the association as of August 31, |
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2012, but for which the person has not obtained a certificate of |
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compliance under Section 2210.251(g), must obtain an alternative |
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certification under this section before the association, on or |
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after August 31, 2013, may renew coverage for the structure. |
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Explanation: The change and addition of text are |
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necessary to clarify the structures to which Section |
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2210.260(d), Insurance Code, does not apply and to change the |
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date on which compliance with that section becomes mandatory |
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before the Texas Windstorm Insurance Association may renew |
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coverage for an insured structure. |
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(2) Senate Rule 12.03(2) is suspended to permit the |
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committee to omit text adding Section 2210.502(e), Insurance |
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Code, by striking the section of the bill that added that |
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subsection. |
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Explanation: The omission of the text is necessary to |
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avoid statutorily establishing a maximum liability limit for |
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windstorm and hail insurance policies issued by the Texas |
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Windstorm Insurance Association. |
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(3) Senate Rule 12.03(4) is suspended to permit the |
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committee to add text on a matter that is not included in either |
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the house or senate version of the bill in added Section |
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2210.573(d), Insurance Code, to read as follows: |
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(d) Unless the applicable 60-day period described by this |
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subsection is extended by the commissioner under Section |
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2210.581, not later than the later of the 60th day after the date |
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the association receives a claim or the 60th day after the date |
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the association receives information requested under Subsection |
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(b), the association shall provide the claimant, in writing, |
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notification that: |
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(1) the association has accepted coverage for the |
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claim in full; |
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(2) the association has accepted coverage for the |
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claim in part and has denied coverage for the claim in part; or |
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(3) the association has denied coverage for the |
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claim in full. |
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Explanation: The addition of the text is necessary to |
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ensure that any commissioner extension of the 60-day period |
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described by Section 2210.573(d) is included in the 120-day |
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aggregated total of commissioner extensions under Section |
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2210.581, Insurance Code, as proposed in the bill. |
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(4) Senate Rule 12.03(4) is suspended to permit the |
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committee to add text on a matter that is not included in either |
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the house or senate version of the bill in added Section |
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2210.575(d), Insurance Code, to read as follows: |
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(d) Alternative dispute resolution under this section |
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must be completed not later than the 60th day after the date a |
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request for alternative dispute resolution is made under |
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Subsection (c). The 60-day period described by this subsection |
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may be extended by the commissioner by rule in accordance with |
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Section 2210.581 or by the association and a claimant by mutual |
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consent. |
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Explanation: The addition of the text is necessary to |
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ensure that any commissioner extension of the 60-day period |
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described by Section 2210.575(d) is included in the 120-day |
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aggregated total of commissioner extensions under Section |
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2210.581, Insurance Code, as proposed in the bill. |
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(5) Senate Rule 12.03(4) is suspended to permit the |
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committee to add text on a matter that is not included in either |
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the house or senate version of the bill by adding Sections |
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2210.581 and 2210.582, Insurance Code, to read as follows: |
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Sec. 2210.581. COMMISSIONER EXTENSION OF DEADLINES. |
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(a) Subject to Subsection (b), the commissioner, on a showing of |
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good cause, may by rule extend any deadline established under |
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this subchapter. |
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(b) With reference to claims filed during a particular |
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catastrophe year, the extension of deadlines under Subsection |
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(a) may not exceed 120 days in the aggregate. |
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(c) For the purposes of Subsection (a), "good cause" |
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includes military deployment. |
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Sec. 2210.582. OMBUDSMAN PROGRAM. (a) The department |
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shall establish an ombudsman program to provide information and |
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educational programs to assist persons insured under this |
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chapter with the claim processes under this subchapter. |
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(b) Not later than March 1 of each year, the department |
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shall prepare and submit to the commissioner a budget for the |
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ombudsman program, including approval of all expenditures |
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incurred in administering and operating the program. The |
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commissioner shall adopt or modify and adopt the budget not later |
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than April 1 of the year in which the budget is submitted. |
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(c) Not later than May 1 of each year, the association |
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shall transfer to the ombudsman program money in an amount equal |
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to the amount of the budget adopted under Subsection (b). The |
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ombudsman program, not later than April 30 of each year, shall |
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return to the association any unexpended funds that the program |
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received from the association in the previous year. |
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(d) The department shall, not later than 60 days after |
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the date of a catastrophic event, prepare and submit an amended |
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budget to the commissioner for approval and report to the |
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commissioner the approximate number of claimants eligible for |
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ombudsman services. The commissioner shall adopt rules as |
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necessary to implement an amended budget submitted under this |
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section, including rules regarding the transfer of additional |
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money from the association to the program. |
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(e) The ombudsman program may provide to persons insured |
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under this chapter information and educational programs through: |
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(1) informational materials; |
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(2) toll-free telephone numbers; |
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(3) public meetings; |
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(4) outreach centers; |
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(5) the Internet; and |
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(6) other reasonable means. |
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(f) The ombudsman program is administratively attached |
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to the department. The department shall provide the staff, |
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services, and facilities necessary for the ombudsman program to |
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operate, including: |
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(1) administrative assistance and service, |
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including budget planning and purchasing; |
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(2) personnel services; |
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(3) office space; and |
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(4) computer equipment and support. |
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(g) The ombudsman program shall prepare and make |
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available to each person insured under this chapter information |
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describing the functions of the ombudsman program. |
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(h) The association, in the manner prescribed by the |
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commissioner by rule, shall notify each person insured under this |
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chapter concerning the operation of the ombudsman program. |
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(i) The commissioner may adopt rules as necessary to |
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implement this section. |
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Explanation: The addition of Section 2210.581, Insurance |
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Code, is necessary to grant the commissioner of insurance limited |
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authority to extend by rule any deadline under Subchapter L-1, |
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Chapter 2210, Insurance Code, as proposed in the bill. The |
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addition of Section 2210.582, Insurance Code, is necessary to |
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establish an ombudsman program to provide information and |
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educational programs to persons insured under Chapter 2210, |
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Insurance Code, to assist those persons with the claims processes |
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established under Subchapter L-1, Chapter 2210, Insurance Code, |
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as proposed in the bill. |
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(6) Senate Rule 12.03(2) is suspended to permit the |
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committee to omit text that is not in disagreement in amended |
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Section 2210.613(c)(1)(E), Insurance Code, so that Subsection |
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(c) reads as follows: |
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(c) The premium surcharge under Subsection (b) shall be |
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assessed on all policyholders of policies that cover [who reside
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or have operations in, or whose] insured property that is located |
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in a catastrophe area, including automobiles principally garaged |
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in a catastrophe area. The premium surcharge shall be assessed |
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on [for] each Texas windstorm and hail insurance policy and each |
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property and casualty insurance policy, including an automobile |
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insurance policy, issued for automobiles and other property |
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located in the catastrophe area. A premium surcharge under |
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Subsection (b) applies to: |
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(1) all policies written under the following lines |
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of insurance: |
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(A) fire and allied lines; |
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(B) farm and ranch owners; |
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(C) residential property insurance; |
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(D) private passenger automobile liability |
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and physical damage insurance; and |
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(E) commercial automobile liability and |
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physical damage insurance; and |
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(2) the property insurance portion of a commercial |
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multiple peril insurance policy [that provide coverage on any
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premises, locations, operations, or property located in the area
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described by this subsection for all property and casualty lines
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of insurance, other than federal flood insurance, workers'
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compensation insurance, accident and health insurance, and
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medical malpractice insurance]. |
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Explanation: The omission of the text is necessary to |
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clarify the lines of commercial automobile insurance to which a |
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premium surcharge under Section 2210.613, Insurance Code, |
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applies. |
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(7) Senate Rule 12.03(1) is suspended to permit the |
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committee to change text on a matter which is not in disagreement |
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in proposed SECTION 60(a) of the bill to read as follows: |
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(a) A legislative interim study committee shall conduct a |
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study of alternative ways to provide insurance to the seacoast |
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territory of this state, including through a quasi-governmental |
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entity. |
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Explanation: The addition of the text is necessary to |
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allow the legislative interim study committee established under |
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SECTION 60 of the bill to study a broader range of alternative |
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ways in which windstorm and hail insurance may be provided in the |
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seacoast territory of this state. |
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(8) Senate Rule 12.03(1) is suspended to permit the |
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committee to change text on a matter which is not in disagreement |
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in proposed SECTION 60(d)(1) of the bill so that Subsection (d) |
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reads as follows: |
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(d) The committee shall: |
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(1) examine alternative ways to provide insurance |
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to the seacoast territory of this state, including through a |
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quasi-governmental entity or by providing insurance coverage |
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through a system or program in which insurers in this state |
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provide insurance in the seacoast territory of this state in |
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proportion to the percentage of insurance coverage provided in |
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geographic areas of this state other than the seacoast territory; |
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(2) study the residual markets for windstorm and |
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hail insurance in other states to determine if those markets |
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operate more efficiently and effectively than the residual |
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market for windstorm and hail insurance coverage in this state; |
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(3) study windstorm-related building codes and |
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mitigation strategies to determine which codes or strategies are |
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most effective; |
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(4) recommend: |
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(A) the appropriate scope of authority and |
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responsibility for the entity to provide insurance to the |
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seacoast territory of this state; |
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(B) an organizational structure to exercise |
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authority and responsibility over the provision of insurance to |
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the seacoast territory of this state; |
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(C) a timetable for implementation; and |
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(D) specific amendments to state laws and |
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rules that are necessary to implement the committee's |
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recommendations under this subdivision; and |
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(5) estimate funding requirements to implement the |
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recommendations. |
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Explanation: The addition of the text is necessary to |
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allow the legislative interim study committee established under |
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SECTION 60 of the bill to study a broader range of alternative |
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ways in which windstorm and hail insurance may be provided in the |
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seacoast territory of this state. |
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_______________________________ |
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President of the Senate |
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I hereby certify that the |
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above Resolution was adopted by |
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the Senate on June 28, 2011, by |
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the |
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_______________________________ |
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Secretary of the Senate |