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A BILL TO BE ENTITLED
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AN ACT
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relating to the payment of insured losses of the Texas Windstorm |
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Insurance Association and funding of the catastrophe reserve trust |
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fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2210.452(a) and (c), Insurance Code, |
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are amended to read as follows: |
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(a) The commissioner shall adopt rules under which the |
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association makes payments to the catastrophe reserve trust fund. |
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The trust fund may be used only to fund the obligations of the trust |
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fund under Subchapter B-1 with respect to insured losses incurred |
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on or after June 1, 2013. |
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(c) At the end of each calendar year or policy year, the |
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association shall make payments to the trust fund in an amount |
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greater than or equal to $200 million. The association may use any |
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[the] net gain from operations of the association remaining after |
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payments to the trust fund, including all premium and other revenue |
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of the association in excess of incurred losses, operating |
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expenses, public security obligations, and public security |
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administrative expenses, to make additional payments to the trust |
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fund or [,] to procure reinsurance[, or to make payments to the
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trust fund and to procure reinsurance]. |
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SECTION 2. Notwithstanding Section 2210.452(a), Insurance |
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Code, as amended by this Act, the catastrophe reserve trust fund may |
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be used only to fund the obligations of that trust fund under |
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Subchapter B-1, Chapter 2210, Insurance Code, with respect to |
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insured losses incurred on or after the earlier of June 1, 2013, or |
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the effective date of this Act. |
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SECTION 3. 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. |