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A BILL TO BE ENTITLED
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AN ACT
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relating to residential property insured by the Texas Windstorm |
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Insurance Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (f), Section 2210.251, Insurance |
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Code, is amended to read as follows: |
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(f) Notwithstanding any other provision of this section, |
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insurance coverage for a residential structure [insured by the
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association as of September 1, 2009,] may be obtained or continued |
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[continue coverage] through the association subject to the |
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inspection requirements imposed under Section 2210.258, if |
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applicable. |
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SECTION 2. Section 2210.258, Insurance Code, is amended to |
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read as follows: |
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Sec. 2210.258. [MANDATORY] COMPLIANCE WITH BUILDING CODES; |
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ELIGIBILITY. (a) Except as provided by Subsection (c) and |
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notwithstanding [Notwithstanding] any other provision of this |
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chapter, to be eligible for insurance through the association, all |
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construction, alteration, remodeling, enlargement, and repair of, |
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or addition to, any structure located in the catastrophe area that |
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is begun on or after the effective date of Sections 5 through 49, |
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H.B. No. 4409, Acts of the 81st Legislature, Regular Session, 2009, |
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must be performed in compliance with the applicable building code |
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standards, as set forth in the plan of operation. |
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(b) Except as provided by Subsection (c), the [The] |
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association may not insure a structure described by Subsection (a) |
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until: |
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(1) the structure has been inspected for compliance |
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with the plan of operation in accordance with Section 2210.251(a); |
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and |
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(2) a certificate of compliance has been issued for |
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the structure in accordance with Section 2210.251(g). |
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(c) The association may insure a residential structure |
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constructed, altered, remodeled, enlarged, repaired, or added to on |
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or after June 19, 2009, that is not in compliance with the |
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applicable building code standards, as set forth in the plan of |
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operation, provided that the structure had been insured on or after |
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that date by an insurer in the private market who canceled or |
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nonrenewed the insurance coverage of the structure before September |
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1, 2013, and no construction, alteration, remodeling, enlargement, |
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or repair of or addition to the structure occurs after cancellation |
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or nonrenewal of the coverage and before submission of an |
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application for coverage through the association. |
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SECTION 3. Subsection (a), Section 2210.259, Insurance |
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Code, is amended to read as follows: |
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(a) A new or renewal insurance policy insuring a |
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noncompliant residential structure under Section 2210.251(f) |
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[insured by the association as of September 1, 2009, under Section
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2210.251(f) that had been approved for insurability under the
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approval process regulations in effect on September 1, 2009,] is |
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subject to an annual premium surcharge in an amount equal to 15 |
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percent of the premium for insurance coverage obtained through the |
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association. The surcharge under this subsection applies to each |
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policy issued or renewed by the association on or after the |
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effective date of Sections 5 through 49, H.B. No. 4409, Acts of the |
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81st Legislature, Regular Session, 2009, and is due on the issuance |
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or renewal of the policy. |
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SECTION 4. Section 2210.260, Insurance Code, is repealed. |
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SECTION 5. 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. |
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* * * * * |