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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of assets of the Texas Windstorm Insurance |
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Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sec. 2210.056. USE OF ASSOCIATION ASSETS. (a) |
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The association's net earnings may not insure, in whole or in part, |
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to the benefit of a private shareholder or individual. |
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(b) The increase in the association's assets in any calendar |
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year may not be used for or diverted to any purpose other than to: |
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(1) satisfy, in whole or in part, the liability of the |
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association on claims incurred in that calendar year made on |
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policies written by the association; |
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(2) make investments authorized under applicable law; |
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(3) pay reasonable and necessary administrative |
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expenses incurred in connection with the operation of the |
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association and the processing of claims incurred in that calendar |
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year against the association; |
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(4) satisfy, in whole or in part, the obligations of |
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the association incurred in connection with Subchapters B-1, J, and |
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M, including reinsurance, public securities, and financial |
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instruments; or |
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(5) make required remittance under the laws of this |
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state to be used by this state to: |
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(A) pay claims made on policies written by the |
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association; |
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(B) purchase reinsurance covering losses under |
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those policies; or |
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(C) prepare for or mitigate the effects of |
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catastrophic natural events. |
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(c) On dissolution of the association, all assets of the |
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association, other than assets pledged for the repayment of public |
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securities issued under this chapter, revert to this state. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |