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A BILL TO BE ENTITLED
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AN ACT
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relating to certain property insurance coverage available through |
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the Texas Windstorm Insurance Association and other entities, the |
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operation of those entities, and activities to pay and reduce |
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losses under that coverage. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.008(c), Insurance Code, is amended |
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to read as follows: |
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(c) In rules adopted under this chapter, the commissioner |
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shall define the meaning of "alter," "alteration," "remodel," and |
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"remodeled" ["alter" and "alteration"] for purposes of this |
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chapter, specifically as used in Subchapters E and F. |
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SECTION 2. Section 2210.055(b), Insurance Code, is amended |
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to read as follows: |
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(b) The association shall adopt separate and distinct |
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procedures for legal counsel in disputes involving policyholder |
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claims against the association. The procedures must ensure that the |
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association is fairly and adequately represented and that |
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policyholders are fairly treated in litigation. |
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SECTION 3. Subchapter B-1, Chapter 2210, Insurance Code, is |
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amended by adding Section 2210.076 to read as follows: |
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Sec. 2210.076. USE OF FUNDS. Notwithstanding Section |
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2210.056(b)(3), funds obtained under this subchapter may not be |
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used to pay administrative expenses incurred in connection with the |
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operation of the association. |
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SECTION 4. Section 2210.105(a), Insurance Code, is amended |
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to read as follows: |
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(a) Except for an emergency meeting, the association shall: |
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(1) notify the department not later than the 30th |
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[11th] day before the date of a meeting of the board of directors or |
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of the members of the association; and |
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(2) not later than the 14th [seventh] day before the |
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date of a meeting of the board of directors, post notice of the |
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meeting on the association's Internet website and the department's |
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Internet website. |
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SECTION 5. Section 2210.202, Insurance Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) The association may establish a web-based system for |
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accepting: |
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(1) applications for initial insurance coverage or |
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renewal insurance coverage under Subsection (b); and |
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(2) premium payments. |
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SECTION 6. Chapter 250, Local Government Code, is amended |
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by adding Section 250.007 to read as follows: |
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Sec. 250.007. INSPECTION OF CONSTRUCTION IN SEACOAST |
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TERRITORY. (a) In this section: |
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(1) "Seacoast territory" has the meaning assigned by |
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Section 2210.003, Insurance Code. |
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(2) "Windstorm certificate" means the certificate of |
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compliance for eligibility for windstorm insurance coverage issued |
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by the Texas Department of Insurance under Chapter 2210, Insurance |
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Code. |
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(b) This section applies to any construction, including an |
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alteration, remodel, enlargement, or repair, involving one or more |
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structural building components and located in the seacoast |
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territory. |
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(c) A municipality or county may establish a program under |
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which, for any structure in the municipality or county, an |
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inspection may be conducted to determine whether the structure |
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meets standards applicable to the structure under Chapter 2210, |
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Insurance Code. This section applies without regard to whether an |
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application for insurance for the property under Chapter 2210, |
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Insurance Code, has been made or will be made. |
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(d) The Texas Department of Insurance may contract with a |
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municipality or county that adopts a program under Subsection (c) |
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to perform the inspections described by that subsection. |
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SECTION 7. Subchapter A, Chapter 2301, Insurance Code, is |
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amended by adding Section 2301.011 to read as follows: |
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Sec. 2301.011. TEXAS WINDSTORM AND HAIL INSURANCE POLICY. |
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(a) In this section, "Texas windstorm and hail insurance" has the |
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meaning assigned by Section 2210.003. |
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(b) Notwithstanding any other law, an insurer may issue a |
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Texas windstorm and hail insurance policy. |
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SECTION 8. The governing committee of the FAIR Plan |
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Association shall, not later than the second anniversary of the |
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effective date of this Act: |
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(1) review the form of, and rate applicable to, each |
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insurance policy issued by the association to determine whether the |
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policy meets the needs of association policyholders; and |
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(2) adopt amendments to the association's plan of |
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operation to implement needed changes identified under Subdivision |
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(1) of this section. |
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SECTION 9. Section 2210.009, Insurance Code, is repealed. |
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SECTION 10. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2013. |