Amend Amendment No. 1 by L. Taylor to HB 1951 (page 1 of the prefiled amendment packet) as follows:
(1)  On page 2, lines 15-17, strike "A person insured under this chapter may submit an application for renewal coverage directly to the association on forms prescribed by the association." and substitute "The association shall develop a simplified renewal process that allows for the acceptance of an application for renewal coverage, and payment of premiums, from a property and casualty agent or a person insured under this chapter."
(2)  On page 2, lines 27-28, strike ", regardless of whether the agent or the applicant submits the application for coverage".
(3)  Strike page 2, line 29 through the end of the amendment and substitute:
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:
(e)  The department may establish an annual renewal period for persons appointed as qualified inspectors.
SECTION ____.____.  Subchapter F, Chapter 2210, Insurance Code, is amended by adding Section 2210.2551 to read as follows:
Sec. 2210.2551.  EXCLUSIVE ENFORCEMENT AUTHORITY; RULES. (a) The department has exclusive authority over all matters relating to the appointment and oversight of qualified inspectors for purposes of this chapter.
(b)  The commissioner by rule shall establish criteria to ensure that a person seeking appointment as a qualified inspector under this subchapter, including an engineer seeking appointment under Section 2210.255, possesses the knowledge, understanding, and professional competence to perform windstorm inspections under this chapter and to comply with other requirements of this chapter.
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:
(a-2)  In addition to any other action authorized under this section, the commissioner ex parte may enter an emergency cease and desist order under Chapter 83 against a qualified inspector, or a person acting as a qualified inspector, if:
(1)  the commissioner believes that:
(A)  the qualified inspector has:
(i)  through submitting or failing to submit to the department sealed plans, designs, calculations, or other substantiating information, failed to demonstrate that a structure or a portion of a structure subject to inspection meets the requirements of this chapter and department rules; or
(ii)  refused to comply with requirements imposed under this chapter or department rules; or
(B)  the person acting as a qualified inspector is acting without appointment as a qualified inspector under Section 2210.254 or 2210.255; and
(2)  the commissioner determines that the conduct described by Subdivision (1) is fraudulent or hazardous or creates an immediate danger to the public.
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:
Sec. 2210.260.  ALTERNATIVE ELIGIBILITY FOR COVERAGE. (a) On and after January 1, 2012, a person who has an insurable interest in a residential structure may obtain insurance coverage through the association for that structure without obtaining a certificate of compliance under Section 2210.251(g) in accordance with this section and rules adopted by the commissioner.
(b)  The department may issue an alternative certification for a residential structure if the person who has an insurable interest in the structure demonstrates that at least one qualifying structural building component of the structure has been:
(1)  inspected by a department inspector or by a qualified inspector; and
(2)  determined to be in compliance with applicable building code standards, as set forth in the plan of operation.
(c)  The commissioner shall adopt reasonable and necessary rules to implement this section. The rules adopted under this section must establish which structural building components are considered qualifying structural building components for the purposes of Subsection (b), taking into consideration those items that are most probable to generate losses for the association's policyholders and the cost to upgrade those items.
(d)  Except as provided in Section 2210.251(f), a person who has an insurable interest in a residential structure that is insured by the association as of January 1, 2012, but for which the person has not obtained a certificate of compliance under Section 2210.251(g), must obtain an alternative certification under this section before the association, on or after January 1, 2013, may renew coverage for the structure.
(e)  Each residential structure for which a person obtains an alternative certification under this section must comply with:
(1)  the requirements of this chapter, including Section 2210.258; and
(2)  the association's underwriting requirements, including maintaining the structure in an insurable condition and paying premiums in the manner required by the association.
(f)  The association shall develop and implement an actuarially sound rate, credit, or surcharge that reflects the risks presented by structures with reference to which alternative certifications have been obtained under this section. A rate, credit, or surcharge under this subsection may vary based on the number of qualifying structural building components included in a structure with reference to which an alternative certification is obtained under this section.
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.