|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the operation of the Texas Windstorm Insurance |
|
Association and the FAIR Plan Association. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. SECTION 1. Section 2210.001, Insurance Code, is |
|
amended to read as follows: |
|
The primary purpose of the Texas Insurance Plan [Texas
|
|
Windstorm Insurance Association] is the provision of an adequate |
|
market for windstorm and hail insurance in the seacoast territory |
|
of this state. The legislature finds the provision of adequate |
|
windstorm and hail insurance is necessary to the economic welfare |
|
of this state, and without that insurance, the orderly growth and |
|
development of this state would be severely impeded. This chapter |
|
provides a method by which adequate windstorm and hail insurance |
|
may be obtained in certain designated portions of the seacoast |
|
territory of this state. The association is intended to serve as a |
|
residual insurer of last resort for windstorm and hail insurance in |
|
the seacoast territory. The association shall: |
|
(1) Function in such a manner as to not be a direct |
|
competitor in the private market; and |
|
(2) provide windstorm and hail insurance coverage to those |
|
who are unable to obtain that coverage in the private market. |
|
SECTION 2. Section 2210.003, Insurance Code, is amended by |
|
amending Subdivision (1) and adding Subdivision (1-a) to read as |
|
follows: |
|
(1) "Association" means the Texas Insurance Plan [Texas
|
|
Windstorm Insurance Association]. |
|
(1-a) "Administrator" means the person contractually |
|
retained to administer the association and the plan of operation |
|
under Sections 2210.062 and 2211.0522. |
|
SECTION 3. Section 2210.014, Insurance Code, is amended by |
|
amending Subsection (b) and adding Subsection (c) to read as |
|
follows: |
|
(b) Chapter 542 does not apply to the processing and |
|
settlement of claims by the association or to an agent or |
|
representative of the association. |
|
(c) Under this section, insurers acting to administer |
|
association claims, and the administrator contracted under |
|
Sections 2210.062 and 2211.0522, are agents of the association. |
|
SECTION 4. Subchapter B, Chapter 2210, Insurance Code, is |
|
amended by adding Sections 2210.062, 2210.063, 2210.064, 2210.065, |
|
2210.066, and 2210.067 to read as follows: |
|
Sec. 2210.062. ADMINISTRATION BY CONTRACTED ADMINISTRATOR. |
|
(a) Notwithstanding any other law, the commissioner shall contract |
|
with an administrator to manage the association and administer the |
|
plan of operation not later than January 1, 2014. |
|
(b) the administrator must hold either, or both, a managing |
|
general agent license or a third party administrator certificate |
|
of authority issued under this code. |
|
(c) The term of the administrator contract may not exceed |
|
five years. The contract may be renewed for additional terms, of |
|
not more than five years for each term. |
|
Sec. 2210.063. COMPENSATION OF ADMINISTRATOR. (a) The |
|
contract between the commissioner and the administrator must |
|
specify the administrator's compensation. The compensation must be |
|
based in part on reasonable projections of the cost to administer |
|
the association. |
|
(b) The administrator's compensation will be paid by the |
|
association. |
|
Sec. 2210.064. PROPRIETARY INFORMATION. Any information, |
|
analyses, programs, or data acquired or created by the |
|
administrator under a contract under this subchapter are property |
|
of the association. |
|
Sec. 2210.065. OFFICE; RECORDS. (a) The administrator |
|
shall maintain an office in Austin, Texas. |
|
Sec. 2210.066. AUDIT. The administrator is subject to |
|
audit by the commissioner and shall pay the costs incurred by the |
|
commissioner in performing an audit under this section. |
|
Sec. 2210.067. ANNUAL REPORT TO COMMISSIONER. Not later |
|
than March 1 of each year, the administrator shall submit a report |
|
to the commissioner regarding the operation of the association. |
|
The report must be made in accordance with the terms of the |
|
administrator's contract with the department. |
|
SECTION 5. Section 2210.071, Insurance Code, is amended to |
|
read as follows: |
|
[(a)] If, in a catastrophe year, an occurrence or series of |
|
occurrences in a catastrophe area results in insured losses and |
|
operating expenses of the association in excess of premium and |
|
other revenue of the association, the excess losses and operating |
|
expenses shall be paid as provided by this subchapter. |
|
[(b)
The association shall pay losses in excess of 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]. |
|
SECTION 6. Section 2210.072, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 2210.072. PAYMENT FROM CLASS 1 FUNDS [PUBLIC
|
|
SECURITIES; FINANCIAL INSTRUMENTS]. (a) The association shall pay |
|
losses in excess of premium and other revenue of the association |
|
from available amounts in the catastrophe reserve trust fund and |
|
member assessments as provided by this section. |
|
(b) The catastrophe reserve trust fund shall fund losses |
|
under this section in an amount not to exceed $1 billion. |
|
(c) Following the use of the catastrophe reserve trust fund, |
|
the association may assess its members in an amount not to exceed |
|
the lesser of: |
|
(1) $800 million; or |
|
(2) $1 billion less the amount of catastrophe reserve |
|
trust funds used under Subsection (b). |
|
(d) The total combined amount of catastrophe reserve trust |
|
funds and member assessments used to pay claims under this section |
|
may not exceed $1 billion. |
|
(e) The association shall notify each member of the |
|
association of the amount of the member's assessment under this |
|
section. The proportion of the losses allocable to each insurer |
|
under this section shall be determined in the manner used to |
|
determine each insurer's participation in the association for the |
|
year under Section 2210.052. |
|
[Losses not paid under Section 2210.071(b) shall be paid as
|
|
provided by this section from the proceeds from Class 1 public
|
|
securities authorized to be issued in accordance with Subchapter M
|
|
before, on, or after the date of any occurrence or series of
|
|
occurrences that results in insured losses.
Public securities
|
|
issued under this section must be repaid within a period not to
|
|
exceed 14 years, and may be repaid sooner if the board of directors
|
|
elects to do so and the commissioner approves.
|
|
[(b) Public securities described by Subsection (a) that are
|
|
issued before an occurrence or series of occurrences that results
|
|
in incurred losses:
|
|
[(1)
may be issued on the request of the board of
|
|
directors with the approval of the commissioner; and
|
|
[(2)
may not, in the aggregate, exceed $1 billion at
|
|
any one time, regardless of the calendar year or years in which the
|
|
outstanding public securities were issued.
|
|
[(b-1) Public securities described by Subsection (a):
|
|
[(1)
shall be issued as necessary in a principal
|
|
amount not to exceed $1 billion per catastrophe year, in the
|
|
aggregate, for securities issued during that catastrophe year
|
|
before the occurrence or series of occurrences that results in
|
|
incurred losses in that year and securities issued on or after the
|
|
date of that occurrence or series of occurrences, and regardless of
|
|
whether for a single occurrence or a series of occurrences; and
|
|
[(2)
subject to the $1 billion maximum described by
|
|
Subdivision (1), may be issued, in one or more issuances or
|
|
tranches, during the calendar year in which the occurrence or
|
|
series of occurrences occurs or, if the public securities cannot
|
|
reasonably be issued in that year, during the following calendar
|
|
year.
|
|
[(c) If public securities are issued as described by this
|
|
section, the public securities shall be repaid in the manner
|
|
prescribed by Subchapter M from association premium revenue.
|
|
[(d)
The association may borrow from, or enter into other
|
|
financing arrangements with, any market source, under which the
|
|
market source makes interest-bearing loans or other financial
|
|
instruments
to the association to enable the association to pay
|
|
losses under this section or to obtain public securities under this
|
|
section.
For purposes of this subsection, financial instruments
|
|
includes commercial paper.
|
|
[(e) The proceeds of any outstanding public securities
|
|
described by Subsection (a) that are issued before an occurrence or
|
|
series of occurrences shall be depleted before the proceeds of any
|
|
securities issued after an occurrence or series of occurrences may
|
|
be used.
This subsection does not prohibit the association from
|
|
issuing securities after an occurrence or series of occurrences
|
|
before the proceeds of outstanding public securities issued during
|
|
a previous catastrophe year have been depleted.
|
|
[(f)
If, under Subsection (e), the proceeds of any
|
|
outstanding public securities issued during a previous catastrophe
|
|
year must be depleted, those proceeds shall count against the $1
|
|
billion limit on public securities described by this section in the
|
|
catastrophe year in which the proceeds must be depleted.
|
|
SECTION 7. Section 2210.074, Insurance Code, is amended to |
|
read as follows: |
|
Section 2210.074. PAYMENT THROUGH CLASS 3 FUNDS [PUBLIC
|
|
SECURITIES]. (a) Losses not paid under Sections 2210.071, |
|
2210.072, and 2210.073 shall be paid as provided by this section |
|
from proceeds of member assessments as provided by this section. |
|
(b) The amount of member assessments that may be made under |
|
this section may not exceed $800 million less the amount of |
|
assessments made under Section 2210.072(c). [from public
|
|
securities authorized to be issued in accordance with Subchapter M
|
|
on or after the date of any occurrence that results in insured
|
|
losses under this subsection or through reinsurance as described by
|
|
Section 2210.075.
Public securities issued under this section
|
|
must be repaid within a period not to exceed 10 years, and may be
|
|
repaid sooner if the board of directors elects to do so and the
|
|
commissioner approves.
|
|
[(b) Public securities described by Subsection (a):
|
|
[(1)
may be issued as necessary in a principal amount
|
|
not to exceed $500 million per catastrophe year, in the aggregate,
|
|
whether for a single occurrence or a series of occurrences; and
|
|
[(2)
subject to the $500 million maximum described by
|
|
Subdivision (1), may be issued, in one or more issuances or
|
|
tranches, during the calendar year in which the occurrence or
|
|
series of occurrences occurs or, if the public securities cannot
|
|
reasonably be issued in that year, during the following calendar
|
|
year.
|
|
(c) [If the losses are paid with public securities described
|
|
by this section, the public securities shall be repaid in the manner
|
|
prescribed by Subchapter M through member assessments as provided
|
|
by this section.] The association shall notify each member of the |
|
association of the amount of the member's assessment under this |
|
section. The proportion of the losses allocable to each insurer |
|
under this section shall be determined in the manner used to |
|
determine each insurer's participation in the association for the |
|
year under Section 2210.052. |
|
SECTION 8. Subchapter B-1, Chapter 2210, Insurance Code, is |
|
amended by adding Section 2210.076 to read as follows: |
|
Sec. 2210.076. PREMIUM TAX CREDIT. (a) The first $300 |
|
million assessed to association members insurers under this |
|
Subchapter during a catastrophe year shall be entitled to a premium |
|
tax credit as provided in subsection (b). |
|
(b) An insurer may credit an amount paid in accordance with |
|
subsection (a) in a catastrophe year against the insurer's premium |
|
tax under Chapter 221. The tax credit authorized under this |
|
subsection shall be allowed at a rate not to exceed 20 percent per |
|
year for five or more successive years following the year of payment |
|
of the claims. The balance of payments made by the insurer and not |
|
claimed as a premium tax credit may be reflected in the books and |
|
records of the insurer as an admitted asset of the insurer for all |
|
purposes, including exhibition in an annual statement under Section |
|
862.001. |
|
SECTION 9. Section 2210.452, Insurance Code, is amended by |
|
amending Subsections (a), (c), and (d) and adding Subsection (e) 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, Section 2210.4522, and |
|
purchase reinsurance under Section 2210.453. |
|
(c) At the end of each calendar year or policy year, the |
|
association shall use the net gain from operations of the |
|
association, including all premium and other revenue of the |
|
association in excess of incurred losses, operating expenses, |
|
deposits to the trust fund under Section 2210.4521, and public |
|
security obligations, and public security administrative expenses, |
|
to make payments to the trust fund, to procure reinsurance, or to |
|
make payments to the trust fund and to procure reinsurance. |
|
(d) The commissioner by rule shall establish the procedure |
|
relating to the disbursement of money from the trust fund to |
|
policyholders and association administrative expenses in the event |
|
of an occurrence or series of occurrences within a catastrophe area |
|
that results in a disbursement under Subchapter B-1. |
|
(e) The commissioner by rule shall establish the procedure |
|
relating to the disbursement of money from the trust fund to pay for |
|
operating expenses, including reinsurance, under Section 2210.453 |
|
if the association does not have sufficient premium and other |
|
revenue. |
|
SECTION 10. Subchapter J, Chapter 2210, Insurance Code, is |
|
amended by adding Sections 2210.4521 and 2210.4522 to read as |
|
follows: |
|
Sec. 2210.4521. CATASTROPHE RESERVE TRUST FUND DEDICATION. |
|
(a) Notwithstanding any other provision in this chapter, as |
|
provided for in the plan of operation the association shall deposit |
|
monthly in a trust fund an amount to accumulate on an annual |
|
calendar year basis the greater of: |
|
(1) $200 million; or |
|
(2) one half of the association's earned premium for |
|
the current calendar year. |
|
(b) The association shall deposit money collected under |
|
this section with the Texas Treasury Safekeeping Trust Company to |
|
be held outside the state treasury. |
|
(c) Not later than February 1 of each year the association |
|
shall direct the Texas Treasury Safekeeping Trust Company to |
|
deposit all amounts deposited in the trust fund during the |
|
preceding calendar year, and interest earned on those funds, into |
|
the catastrophe reserve trust fund. |
|
(d) Money deposited in the trust fund under this section is |
|
irrevocably pledged to be distributed to the catastrophe reserve |
|
trust fund as provided in this section and is exempt from any other |
|
claim or attachment under law. |
|
(e) Money deposited under this section may be invested by |
|
the Texas Treasury Safekeeping Trust Company as permitted by |
|
general law. |
|
Sec. 2210.4522. CLASS 2 PUBLIC SECURITY ALLOCATION. (a) If |
|
class 2 public securities are outstanding and payable, the |
|
commissioner may authorize the transfer of any portion of the |
|
amount of catastrophe reserve trust funds in excess of $1 billion to |
|
the premium surcharge trust fund established for the payment of |
|
Class 2 public securities and public security administrative |
|
expenses under Section 2210.613. |
|
(b) The commissioner shall consider the transfer under this |
|
section when determining the premium surcharge under Section |
|
2210.613. |
|
SECTION 11. Section 2210.453, Insurance Code, is amended by |
|
amending Subsection (b) and adding subsection (b-1) to read as |
|
follows: |
|
(b) The association may purchase reinsurance that operates |
|
in addition to [or in concert with the trust fund, public
|
|
securities, financial instruments, and] assessments authorized by |
|
Section 2210.074 [this chapter]. |
|
(b-1) The association may not purchase reinsurance that has |
|
an attachment point preceding the member insurer's assessment |
|
liabilities under Section 2210.074. |
|
SECTION 12. Subchapter L-1, Chapter 2210, Insurance Code, |
|
is amended by adding Section 2210.5725 to read as follows: |
|
Sec. 2210.5725. ASSOCIATION CLAIMS PROCESSING. (a) An |
|
insurer that has primary coverage on property for loss by fire must |
|
adjust all claims made on or after June 1, 2013, on an association |
|
policy covering the same property. |
|
(b) An insurer acting under this section is an agent of the |
|
association for purposes of Sections 2210.014 and 2210.572 and |
|
shall process claims as prescribed by this chapter and the plan of |
|
operation. |
|
(c) An insurer acting under this section is not liable for |
|
any amount payable under the terms of the association policy. |
|
SECTION 13. Section 2210.602, Insurance Code, is amended by |
|
amending Subdivisions (2), (3), (4), (5), (5-a), (6), (6-b), and |
|
(6-c) to read as follows: |
|
(2) ["Class 1 public securities" means public
|
|
securities authorized to be issued by Section 2210.072, including a
|
|
commercial paper program authorized before the occurrence of a
|
|
catastrophic event.] |
|
[(3)] "Class 2 public securities" means public |
|
securities authorized to be issued on or after the occurrence of a |
|
catastrophic event by Section 2210.073. |
|
[(4)
"Class 3 public securities" means public
|
|
securities authorized to be issued on or after the occurrence of a
|
|
catastrophic event by Section 2210.074.] |
|
(3) [(5)] "Credit agreement" has the meaning assigned |
|
by Chapter 1371, Government Code. |
|
[(5-a) "Gross premium" means association premium, less
|
|
premium returned to policyholders for canceled or reduced
|
|
policies.] |
|
(4)[(6)] "Insurer" means each property and casualty |
|
insurer authorized to engage in the business of property and |
|
casualty insurance in this state and an affiliate of such an |
|
insurer, as described by Section 823.003, including an affiliate |
|
that is not authorized to engage in the business of property and |
|
casualty insurance in this state. The term specifically includes a |
|
county mutual insurance company, a Lloyd's plan, and a reciprocal |
|
or interinsurance exchange. |
|
(5)[(6-b)] "Member assessment trust fund" means the |
|
dedicated trust fund established by the board and held by the Texas |
|
Treasury Safekeeping Trust Company into which member assessments |
|
collected under Sections 2210.613 and 2210.6135 are deposited. |
|
(6)[(6-c)] "Premium surcharge trust fund" means the |
|
dedicated trust fund established by the board and held by the Texas |
|
Treasury Safekeeping Trust Company into which premium surcharges |
|
collected under Section 2210.613 are deposited. |
|
SECTION 14. Section 2210.609, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 2210.609. REPAYMENT OF ASSOCIATION'S PUBLIC SECURITY |
|
OBLIGATIONS. (a) The board and the association shall enter into |
|
an agreement under which the association shall provide for the |
|
payment of all public security obligations from available funds |
|
collected by the association and deposited into the public security |
|
obligation revenue fund. If the association determines that it is |
|
unable to pay the public security obligations and public security |
|
administrative expenses, if any, with available funds, the |
|
association shall pay those obligations and expenses in accordance |
|
with Section [Sections 2210.612,] 2210.613 [, 2210.6135, and
|
|
2210.6136 as applicable]. [Class 1,] Class 2[, or Class 3] public |
|
securities may be issued on a parity or subordinate lien basis with |
|
other [Class 1,] Class 2[, or Class 3] public securities [,
|
|
respectively]. |
|
(b) If any public securities issued under this chapter are |
|
outstanding, the authority shall notify the association of the |
|
amount of the public security obligations and the estimated amount |
|
of public security administrative expenses, if any, each calendar |
|
year in a period sufficient, as determined by the association, to |
|
permit the association to determine the availability of funds, |
|
assess members of the association under Section [Sections] 2210.613 |
|
[and 2210.6135], and assess a premium surcharge if necessary. |
|
(c) The association shall deposit all revenue collected |
|
under [Section 2210.612 in the public security obligation revenue
|
|
fund, all revenue collected under] Section 2210.613(b) in the |
|
premium surcharge trust fund, and all revenue collected under |
|
Section [Sections] 2210.613(a) [and 2210.6135] in the member |
|
assessment trust fund. Money deposited in a fund may be invested |
|
as permitted by general law. Money in a fund required to be used to |
|
pay public security obligations and public security administrative |
|
expenses, if any, shall be transferred to the appropriate funds in |
|
the manner and at the time specified in the proceedings authorizing |
|
the public securities to ensure timely payment of obligations and |
|
expenses. This may include the board establishing funds and |
|
accounts with the comptroller that the board determines are |
|
necessary to administer and repay the public security |
|
obligations. If the association has not transferred amounts |
|
sufficient to pay the public security obligations to the board's |
|
designated interest and sinking fund in a timely manner, the board |
|
may direct the Texas Treasury Safekeeping Trust Company to transfer |
|
from the public security obligation revenue fund, the premium |
|
surcharge trust fund, or the member assessment trust fund to the |
|
appropriate account the amount necessary to pay the public security |
|
obligation. |
|
(d) The association shall provide for the payment of the |
|
public security obligations and the public security administrative |
|
expenses by irrevocably pledging revenues received from |
|
[premiums,] member assessments, premium surcharges, and amounts on |
|
deposit in the public security obligation revenue fund, the premium |
|
surcharge trust fund, and the member assessment trust fund, |
|
together with any public security reserve fund, as provided in the |
|
proceedings authorizing the public securities and related credit |
|
agreements. |
|
(e) An amount owed by the board under a credit agreement |
|
shall be payable from and secured by a pledge of revenues received |
|
by the association or amounts from the public security obligation |
|
trust fund, the premium surcharge trust fund, and the member |
|
assessment trust fund to the extent provided in the proceedings |
|
authorizing the credit agreement. |
|
SECTION 15. Section 2210.610(a), Insurance Code, is amended |
|
to read as follows: |
|
(a) Revenues received from the premium surcharges under |
|
Section 2210.613 and member assessments under Section [Sections] |
|
2210.613 [and 2210.6135] may be applied only as provided by this |
|
subchapter. |
|
SECTION 16. Section 2210.611, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 2210.611. EXCESS REVENUE COLLECTIONS AND INVESTMENT |
|
EARNINGS. Revenue collected in any calendar year from a premium |
|
surcharge under Section 2210.613 and member assessments under |
|
Section [Sections] 2210.613 [and 2210.6135] that exceeds the amount |
|
of the public security obligations and public security |
|
administrative expenses payable in that calendar year and interest |
|
earned on the public security obligation fund may, in the |
|
discretion of the association, be: |
|
(1) used to pay public security obligations payable in |
|
the subsequent calendar year, offsetting the amount of the premium |
|
surcharge and member assessments, as applicable, that would |
|
otherwise be required to be levied for the year under this |
|
subchapter; |
|
(2) used to redeem or purchase outstanding public |
|
securities; or |
|
(3) deposited in the catastrophe reserve trust fund. |
|
SECTION 17. Section 2210.614, Insurance Code, is amended to |
|
read as follows: |
|
Sec. 2210.614. REFINANCING PUBLIC SECURITIES. The |
|
association may request the board to refinance any Class 2 public |
|
securities issued in accordance with Subchapter B-1 [, whether
|
|
Class 1, Class 2, or Class 3 public securities,] with public |
|
securities payable from the same sources as the original public |
|
securities. |
|
SECTION 18. Subchapter B, Chapter 2211, Insurance Code, is |
|
amended by adding Section 2211.0522 to read as follows: |
|
Sec. 2211.0522. ADMINISTRATION BY CONTRACTED |
|
ADMINISTRATOR. (a) Notwithstanding any other law, the |
|
commissioner shall contract with an administrator, as described |
|
under Sections 2210.003, 2210.014, 2210.063, 2210.064, |
|
2210.065,2210.066, and 2210.067, to manage the association and |
|
administer the plan of operation not later than January 1, 2014. |
|
(b) the administrator must hold either, or both, a managing |
|
general agent license or a third party administrator certificate |
|
of authority issued under this code. |
|
(c) The term of the administrator contract may not exceed |
|
five years. The contract may be renewed for additional terms, of |
|
not more than five years for each term. |
|
SECTION 19. Sections 2210.605(c), 2210.608(c), 2210.612, |
|
2210.6135, and 2210.6136, Insurance Code, are repealed. |
|
SECTION 20. Notwithstanding Section 2210.4521 as added by |
|
this Act, beginning on the effective date of this Act and continuing |
|
until December 31, 2013, the association shall deposit one-half of |
|
its earned premium into the trust described by that section. Money |
|
collected in calendar year 2013 shall be deposited in the |
|
catastrophe reserve trust fund as described by that section. |
|
Section 2210.4521 shall apply to all association premium earned on |
|
and after January 1, 2014. |
|
SECTION 21. Notwithstanding Section 2210.072 as amended by |
|
this Act, amounts collected under Section 2210.4521 and SECTION 20 |
|
of this Act, may not be used to pay for a covered insured |
|
association loss occurring prior to the effective date of this Act. |
|
SECTION 22. (a) Effective January 1, 2014, the name of the Texas |
|
Windstorm Insurance Association is changed to Texas Insurance Plan |
|
and all powers, duties, rights, and obligations of the Texas |
|
Windstorm Insurance Association are the powers, duties, rights, and |
|
obligations of the Texas Insurance Plan. |
|
(b) Effective January 1, 2014, a reference in law to the |
|
Texas Windstorm Insurance Association is a reference to the Texas |
|
Insurance Plan. |
|
(c) The Texas Windstorm Insurance Association shall adopt a |
|
timetable for phasing in the change of the association's name so as |
|
to minimize the fiscal impact of the name change. Until January 1, |
|
2014, to allow for phasing in the change of the association's name |
|
and in accordance with the timetable established as required by |
|
this section, the association may perform any act authorized by law |
|
for the Texas Windstorm Insurance Association as the Texas |
|
Insurance Plan. Any act of the Texas Windstorm Insurance |
|
Association acting as the Texas Insurance Plan after the effective |
|
date of this Act and before January 1, 2014, is an act of the Texas |
|
Windstorm Insurance Association. |
|
SECTION 23. The commissioner may, by order, require the |
|
administrator retained to administer the Texas Insurance Plan under |
|
Section 2210.062 to assume responsibility for administering the |
|
Texas Insurance Plan and the plan of operation as described in |
|
Section 2210.062 of this Act prior to January 1, 2014. |
|
SECTION 24. 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 on the 91st day after the last day of |
|
the legislative session. |