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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation and oversight of the Texas Windstorm |
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Insurance Association and other insurance entities; increasing a |
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surcharge. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 441.105(c), Insurance Code, is amended |
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to read as follows: |
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(c) The commissioner shall [may] release the insurer from |
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supervision if, after the hearing, it is determined that the |
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insurer: |
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(1) has been rehabilitated; or |
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(2) is no longer in a condition that makes the |
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insurer's continuation in business hazardous to the public or to |
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the insurer's policyholders or certificate holders. |
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SECTION 2. Section 2210.107(b), Insurance Code, is amended |
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to read as follows: |
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(b) Each month [Every two months], the general manager of |
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the association shall submit to the board a report evaluating the |
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extent to which the association met the objectives described by |
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Subsection (a) in the two-month period immediately preceding the |
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date of the report. |
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SECTION 3. Section 2210.204, Insurance Code, is amended by |
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adding Subsection (f) to read as follows: |
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(f) An insured who without cause cancels or allows to lapse |
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insurance coverage issued by the association may not subsequently |
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obtain coverage from the association for the previously insured |
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property until on or after the anniversary of the date the policy |
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was canceled or lapsed. |
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SECTION 4. Section 2210.259(a), Insurance Code, is amended |
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to read as follows: |
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(a) A noncompliant residential structure insured by the |
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association as of September 1, 2009, under Section 2210.251(f) that |
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had been approved for insurability under the approval process |
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regulations in effect on September 1, 2009, is subject to an annual |
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premium surcharge in an amount equal to 20 [15] percent of the |
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premium for insurance coverage obtained through the association. |
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The surcharge under this subsection applies to each policy issued |
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or renewed by the association on or after the effective date of |
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Sections 5 through 49, H.B. No. 4409, Acts of the 81st Legislature, |
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Regular Session, 2009, and is due on the issuance or renewal of the |
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policy. |
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SECTION 5. Section 2210.363(a), Insurance Code, is amended |
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to read as follows: |
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(a) The association shall [may] offer a person insured under |
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this chapter an actuarially justified premium discount on a policy |
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issued by the association, or an actuarially justified credit |
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against a surcharge assessed against the person, other than a |
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surcharge assessed under Subchapter M, if: |
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(1) the construction, alteration, remodeling, |
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enlargement, or repair of, or an addition to, insurable property |
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exceeds applicable building code standards set forth in the plan of |
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operation; or |
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(2) the person elects to purchase a binding |
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arbitration endorsement under Section 2210.554. |
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SECTION 6. Section 2210.576(b), Insurance Code, is amended |
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to read as follows: |
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(b) Except as provided by Subsections (c) and (d), a |
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claimant that brings an action against the association under |
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Section 2210.575 may recover only: |
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(1) the covered loss payable under the terms of the |
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association policy less, if applicable, the amount of loss already |
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paid by the association for any portion of a covered loss for which |
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the association accepted coverage; |
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(2) prejudgment interest from the first day after the |
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date specified in Section 2210.5731 by which the association was or |
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would have been required to pay an accepted claim or the accepted |
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portion of a claim, at the prejudgment interest rate provided in |
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Subchapter B, Chapter 304, Finance Code; and |
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(3) court costs and reasonable and necessary |
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attorney's fees and expert witness fees. |
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SECTION 7. Sections 2152.004, 2210.005, 2210.0081, and |
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2211.156, Insurance Code, are repealed. |
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SECTION 8. (a) Section 441.105(c), Insurance Code, as |
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amended by this Act, applies to a determination by the commissioner |
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of insurance made on or after the effective date of this Act. A |
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determination made before the effective date of this Act is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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(b) Section 2210.204(f), Insurance Code, as added by this |
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Act, applies to a cancellation or lapse of a policy on or after the |
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effective date of this Act. A cancellation or lapse before the |
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effective date of this Act is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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(c) Sections 2210.259(a) and 2210.363(a), Insurance Code, |
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as amended by this Act, apply only to an insurance policy that is |
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delivered, issued for delivery, or renewed on or after January 1, |
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2014. A policy delivered, issued for delivery, or renewed before |
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January 1, 2014, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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(d) Section 2210.576(b), Insurance Code, as amended by this |
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Act, applies only to an action filed on or after the effective date |
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of this Act. An action filed before the effective date of this Act |
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is covered by the law in effect on the date the action was filed, and |
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that law is continued in effect for that purpose. |
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SECTION 9. This Act takes effect September 1, 2013. |