83R8486 TJS-D

By: Bonnen of Galveston H.B. No. 3373

A BILL TO BE ENTITLED

AN ACT

relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 2210.452(a) and (c), Insurance Code, are amended to read as follows:

(a) The commissioner shall adopt rules under which the association makes payments to the catastrophe reserve trust fund. The trust fund may be used only to fund the obligations of the trust fund under Subchapter B-1 with respect to insured losses incurred on or after June 1, 2013.

(c) At the end of each calendar year or policy year, the association shall make payments to the trust fund in an amount greater than or equal to $200 million. The association may use any [the] net gain from operations of the association remaining after payments to the trust fund, including all premium and other revenue of the association in excess of incurred losses, operating expenses, public security obligations, and public security administrative expenses, to make additional payments to the trust fund or [,] to procure reinsurance[, or to make payments to the trust fund and to procure reinsurance].

SECTION 2. Notwithstanding Section 2210.452(a), Insurance Code, as amended by this Act, the catastrophe reserve trust fund may be used only to fund the obligations of that trust fund under Subchapter B-1, Chapter 2210, Insurance Code, with respect to insured losses incurred on or after the earlier of June 1, 2013, or the effective date of this Act.

SECTION 3. 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.