BILL ANALYSIS

Senate Research Center	S.B. 1035
86R10210 SMT-D	By: Taylor
	Business & Commerce
	4/6/2019
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Interested parties note that the maximum liability limits for coverage under a windstorm and hail insurance policy issued by the Texas Windstorm Insurance Association have gone unchanged for a number of years. The parties suggest that there is a need to revise the procedures for approval of the limits.

S.B. 1035 seeks to address this need by establishing that the maximum liability limits are considered approved by the commissioner of insurance (commissioner) unless the commissioner disapproves or modifies the limits by a specified deadline.

As proposed, S.B. 1035 amends current law relating to maximum liability limits for windstorm and hail insurance coverage provided through the Texas Windstorm Insurance Association.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2210.501(a), Insurance Code, as follows:

(a) Provides that the maximum liability limits under a windstorm and hail insurance policy issued by the Texas Windstorm Insurance Association are considered approved by the commissioner of insurance (commissioner) unless the commissioner disapproves or modifies the liability limits by order issued not later than the 30th day after the date of receipt of a filing under Section 2210.503 (Filing of Proposed Adjustments With Commissioner), rather than providing that the maximum liability limits must be approved by the commissioner.

SECTION 2. Amends Section 2210.504(a), Insurance Code, to require the commissioner by order, not later than the 30th, rather than 60th day, after the date the commissioner disapproves or modifies a filing, rather than the date of receipt of that filing and after notice and hearing, to approve, disapprove, or modify the proposed adjustment to the maximum liability limits.

SECTION 3. Makes application of this Act prospective to January 1, 2020.

SECTION 4. Effective date: September 1, 2019.