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A BILL TO BE ENTITLED
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AN ACT
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relating to reinsurance for catastrophic losses provided to the |
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Texas Windstorm Insurance Association by member insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter J, Chapter 2210, Insurance Code, is |
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amended by adding Section 2210.4522 to read as follows: |
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Sec. 2210.4522. REINSURANCE REQUIRED. (a) Notwithstanding |
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any other provision of this chapter, a member insurer shall provide |
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to the association reinsurance in lieu of reinsurance purchased |
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under Section 2210.453 at no cost to the association. The |
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proportion of the losses that exceed the attachment point for the |
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provided reinsurance is calculated in the manner used to determine |
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each insurer's participation in the association for the year under |
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Section 2210.052. |
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(b) A member insurer may purchase reinsurance to cover the |
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proportion of losses for which the insurer is responsible under |
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Subsection (a). |
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SECTION 2. The Texas Windstorm Insurance Association shall |
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amend the association's plan of operation to conform to the changes |
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in law made by this Act not later than the 60th day after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2019. |