| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the use of assets of the Texas Windstorm Insurance |
|
|
Association. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Sec. 2210.071. PAYMENT OF EXCESS LOSSES; |
|
|
PAYMENT FROM RESERVES AND TRUST FUND. (a) If, in a calendar |
|
|
[catastrophe] year, an occurrence or series of occurrences in a |
|
|
catastrophe area results in insured losses, including loss |
|
|
adjustment expenses, and operating expenses of the association in |
|
|
excess of premium and other revenue of the association, the excess |
|
|
losses, including loss adjustment expenses, and operating expenses |
|
|
shall be paid as provided by this subchapter. |
|
|
(b) The association shall pay losses in excess of that |
|
|
calendar year's premium and other revenue of the association from |
|
|
available reserves of the association and available amounts in the |
|
|
catastrophe reserve trust fund. |
|
|
(c) Losses not paid under Subsection (b) shall be paid from |
|
|
the proceeds from public securities issued in accordance with this |
|
|
subchapter and Subchapter M and, notwithstanding Subsection (a), |
|
|
may be paid from the proceeds of public securities issued under |
|
|
Section 2210.072(a) before an occurrence or series of occurrences |
|
|
that results in insured losses. |
|
|
(d) If additional losses, including loss adjustment |
|
|
expenses, related to prior calendar years are recognized, the |
|
|
current year's premium and other revenue must not be used to satisfy |
|
|
the additional losses, including loss adjustment expenses. |
|
|
SECTION 2. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2013. |