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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. 2210.152. CONTENTS OF PLAN OF OPERATION. |
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(a) The plan of operation must: |
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(1) provide for the efficient, economical, fair, and |
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nondiscriminatory administration of the association, including |
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that current calendar year revenue must not be used to pay losses, |
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including loss adjustment expenses, that were incurred in prior |
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years; and |
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(2) include: |
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(A) a plan for the equitable assessment of the |
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members of the association to defray losses and expenses; |
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(B) underwriting standards; |
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(C) procedures for accepting and ceding |
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reinsurance; |
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(D) procedures for obtaining and repaying |
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amounts under any financial instruments authorized under this |
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chapter; |
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(E) procedures for determining the amount of |
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insurance to be provided to specific risks; |
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(F) time limits and procedures for processing |
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applications for insurance; and |
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(G) other provisions as considered necessary by |
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the department to implement the purposes of this chapter. |
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(b) The plan of operation may provide for liability limits |
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for an insured structure and for the corporeal movable property |
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located in the structure. |
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(c) The plan of operation shall require the association to |
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use the claim settlement guidelines published by the commissioner |
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under Section 2210.578(f) in evaluating the extent to which a loss |
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to insured property is incurred as a result of wind, waves, tidal |
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surges, or rising waters not caused by waves or surges. |
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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. |