Amend HB 1951 (house committee printing) by adding the following appropriately numbered ARTICLE to the bill and renumbering subsequent ARTICLES of the bill accordingly:

ARTICLE ____. TEXAS WINDSTORM INSURANCE ASSOCIATION

SECTION ____.____.  Section 83.002, Insurance Code, is amended by adding Subsection (c) to read as follows:

SECTION ____.____.  Section 2210.105, Insurance Code, is amended by amending Subsection (b) and adding Subsections (b-1), (e), and (f) to read as follows:

(b)  Except for a closed meeting authorized by Subchapter D, Chapter 551, Government Code, a meeting of the board of directors or of the members of the association is open to[:

[(1)     the commissioner or the commissioner's designated representative; and

[(2)]  the public.

SECTION ____.____.  Subchapter C, Chapter 2210, Insurance Code, is amended by adding Section 2210.108 to read as follows:

SECTION ____.____.  Section 2210.202(b), Insurance Code, is amended to read as follows:

(b)  A property and casualty agent must submit an application for initial [the] insurance coverage on behalf of the applicant on forms prescribed by the association.  A person insured under this chapter may submit an application for renewal coverage directly to the association on forms prescribed by the association. An [The] application for initial or renewal coverage must contain:

(1)  a statement as to whether the applicant has submitted or will submit the premium in full from personal funds or, if not, to whom a balance is or will be due; and

(2)  [. Each application for initial or renewal coverage must also contain] a statement that the agent acting on behalf of the applicant possesses proof of the declination described by Subsection (a) and proof of flood insurance coverage or unavailability of that coverage as described by Section 2210.203(a-1), regardless of whether the agent or the applicant submits the application for coverage.

SECTION ____.____.  Sections 2210.203(a) and (c), Insurance Code, are amended to read as follows:

(a)  If the association determines that the property for which an application for initial insurance coverage is made is insurable property, the association, on payment of the premium, shall direct the issuance of an insurance policy as provided by the plan of operation.

(c)  A policy may be renewed annually on application for renewal as long as the property continues to be insurable property. If the association determines that the property for which an application for renewal insurance coverage is made is insurable property, the association shall direct the issuance of a renewal insurance policy as provided by the plan of operation and may collect the premium for the policy directly from the applicant for renewal insurance coverage.

SECTION ____.____.  Sections 2210.204(d) and (e), Insurance Code, are amended to read as follows:

(d)  If an insured requests cancellation of the insurance coverage, the association shall refund the unearned premium, less any minimum retained premium set forth in the plan of operation, payable to the insured and the holder of an unpaid balance. The property and casualty agent who received a commission as the result of the issuance of an association policy providing the canceled coverage [submitted the application] shall refund the agent's commission on any unearned premium in the same manner.

(e)  For cancellation of insurance coverage under this section, the minimum retained premium in the plan of operation must be for a period of not less than 90 [180] days, except for events specified in the plan of operation that reflect a significant change in the exposure or the policyholder concerning the insured property, including:

(1)  the purchase of similar coverage in the voluntary market;

(2)  sale of the property to an unrelated party;

(3)  death of the policyholder; or

(4)  total loss of the property.

SECTION ____.____.  Section 2210.254, Insurance Code, is amended by adding Subsection (e) to read as follows:

SECTION ____.____.  Subchapter F, Chapter 2210, Insurance Code, is amended by adding Section 2210.2551 to read as follows:

SECTION ____.____.  The heading to Section 2210.256, Insurance Code, is amended to read as follows:

Sec. 2210.256.  DISCIPLINARY PROCEEDINGS REGARDING APPOINTED INSPECTORS AND CERTAIN OTHER PERSONS.

SECTION ____.____.  Section 2210.256, Insurance Code, is amended by adding Subsection (a-2) to read as follows:

SECTION ____.____.  Section 2210.258(b), Insurance Code, is amended to read as follows:

(b)  The association may not insure a structure described by Subsection (a) until:

(1)  the structure has been inspected for compliance with the plan of operation in accordance with Section 2210.251(a); and

(2)  except as provided by Section 2210.260, a certificate of compliance has been issued for the structure in accordance with Section 2210.251(g).

SECTION ____.____.  Subchapter F, Chapter 2210, Insurance Code, is amended by adding Section 2210.260 to read as follows:

SECTION ____.____.  This article applies only to a Texas windstorm and hail insurance policy delivered, issued for delivery, or renewed by the Texas Windstorm Insurance Association on or after the 30th day after the effective date of this Act. A Texas windstorm and hail insurance policy delivered, issued for delivery, or renewed by the Texas Windstorm Insurance Association before the 30th day after the effective date of this Act, is governed by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose.

SECTION ____.____.  The Texas Windstorm Insurance Association shall, not later than January 1, 2012, amend the association's plan of operation as necessary to conform to the changes in law made by this article.