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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of windstorm and hail insurance policies |
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by the Texas Windstorm Insurance Association for property located |
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in certain flood zones. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.203, Insurance Code, is amended by |
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amending Subsection (a-1) and adding Subsection (a-2) to read as |
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follows: |
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(a-1) This subsection applies [only] to any [a] structure |
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that, on or after September 1, 2011, is constructed or is [,] |
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altered, remodeled, or enlarged at a cost that is 50 percent or more |
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of the appraised fair market value of the structure [on or after
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September 1, 2009, and only for insurable property located in areas
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designated by the commissioner]. Notwithstanding Subsection (a), |
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if all or any part of the property to be insured by the association |
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[which this subsection applies] is located in Zone V or another |
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similar zone with an additional hazard associated with storm waves, |
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as defined by the National Flood Insurance Program, [and if flood
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insurance under that federal program is available,] the association |
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may not issue an insurance policy for initial or renewal coverage |
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unless evidence is submitted to the association that the property |
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to be covered under the policy is also covered by a flood insurance |
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policy issued under the National Flood Insurance Program. This |
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subsection does not apply to property for which flood insurance is |
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not available under the National Flood Insurance Program [is
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submitted to the association]. |
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(a-2) An agent offering or selling a Texas windstorm and |
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hail insurance policy [in any area designated by the commissioner
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under this subsection] shall offer flood insurance coverage |
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required under Subsection (a-1) to a [the] prospective insured, if |
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that coverage is available. |
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SECTION 2. Section 2210.203(a-1), Insurance Code, as |
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amended by this Act, and Section 2210.203(a-2), Insurance Code, as |
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added by this Act, apply only to a Texas windstorm and hail |
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insurance policy delivered, issued for delivery, or renewed by the |
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Texas Windstorm Insurance Association on or after October 1, 2011. |
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A Texas windstorm and hail insurance policy delivered, issued for |
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delivery, or renewed by the Texas Windstorm Insurance Association |
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before October 1, 2011, is governed by the law in effect on the date |
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the policy was delivered, issued for delivery, or renewed, and the |
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former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |