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A BILL TO BE ENTITLED
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AN ACT
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relating to the composition of the board of directors of the Texas |
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Windstorm Insurance Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.102, Insurance Code, is amended to |
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read as follows: |
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Sec. 2210.102. COMPOSITION. (a) The board of directors is |
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composed of 11 [nine] members appointed by the governor |
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[commissioner] in accordance with this section. |
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(b) Three [Four] members must be representatives of the |
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insurance industry who actively write and renew windstorm and hail |
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insurance in the seacoast territory. |
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(c) Six [Four] members must, as of the date of the |
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appointment, reside in the first tier coastal counties. Of the six |
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members appointed under this subsection: |
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(1) two [At least one of the members appointed under
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this subsection] must be [a] property and casualty agents [agent] |
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who are [is] licensed under this code and are [is] not [a] captive |
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agents; |
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(2) one must be a representative of the construction |
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industry; |
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(3) one must be a coastal engineer; and |
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(4) two must be policyholders of the association and |
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not agents [agent]. |
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(d) One member must be a representative of an area of this |
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state that is not located in the seacoast territory with |
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demonstrated expertise in insurance and actuarial principles. |
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(d-1) One member must be a representative of the financial |
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industry. |
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(e) All members must have demonstrated experience in |
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insurance, general business, [or] actuarial principles, finance, |
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engineering, or construction sufficient to make the success of the |
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association probable. |
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(f) Insurers who are members of the association shall |
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nominate, from among those members, persons to fill any vacancy in |
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the three [four] board of director seats reserved for |
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representatives of the insurance industry. The board of directors |
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shall solicit nominations from the members and submit the |
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nominations to the governor [commissioner]. The nominee slate |
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submitted to the governor [commissioner] under this subsection must |
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include at least three more names than the number of |
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vacancies. The governor [commissioner] shall appoint replacement |
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insurance industry representatives from the nominee slate. |
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(g) The governor [commissioner] shall appoint three persons |
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[one person] to serve as [a] nonvoting members [member] of the |
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board, each of whom must, as of the date of the appointment, be a |
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public official of a first tier coastal county, with each of the |
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following regions represented by one nonvoting member: |
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(1) the region consisting of Cameron, Kenedy, Kleberg, |
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and Willacy Counties; |
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(2) the region consisting of Aransas, Calhoun, Nueces, |
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Refugio, and San Patricio Counties; and |
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(3) the region consisting of Brazoria, Chambers, |
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Galveston, Jefferson, and Matagorda Counties [to advise the board
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regarding issues relating to the inspection process.
The
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commissioner may give preference in an appointment under this
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subsection to a person who is a qualified inspector under Section
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2210.254.
The nonvoting member appointed under this section must:
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[(1)
be an engineer licensed by, and in good standing
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with, the Texas Board of Professional Engineers;
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[(2) reside in a first tier coastal county; and
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[(3)
be knowledgeable of, and have professional
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expertise in, wind-related design and construction practices in
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coastal areas that are subject to high winds and hurricanes]. |
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(h) The persons appointed under Subsection (c) must be from |
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different counties with each of the regions listed in Subsection |
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(g) represented by at least one person. |
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SECTION 2. (a) The board of directors of the Texas |
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Windstorm Insurance Association established under Section |
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2210.102, Insurance Code, as that section existed before amendment |
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by this Act, is abolished effective December 31, 2013. |
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(b) The governor shall appoint the members of the board of |
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directors of the Texas Windstorm Insurance Association under |
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Section 2210.102, Insurance Code, as amended by this Act, not later |
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than December 31, 2013. |
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(c) The term of a person who is serving as a member of the |
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board of directors of the Texas Windstorm Insurance Association |
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immediately before the abolition of that board under Subsection (a) |
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of this section expires on December 31, 2013. Such a person is |
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eligible for appointment by the governor to the new board of |
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directors of the Texas Windstorm Insurance Association, subject to |
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the requirements of Section 2210.102, Insurance Code, as amended by |
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this Act. |
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SECTION 3. This Act takes effect September 1, 2013. |