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A BILL TO BE ENTITLED
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AN ACT
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relating to premium rates for policies issued by the Texas |
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Windstorm Insurance Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.204, Insurance Code, is amended by |
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adding Subsection (f) to read as follows: |
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(f) This section does not apply to a policy if a claim has |
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been filed for a loss covered by the policy or a preceding policy |
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that has not been paid or denied by the association. |
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SECTION 2. Section 2210.355, Insurance Code, is amended by |
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adding Subsection (c-1) to read as follows: |
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(c-1) Notwithstanding any other provision of this chapter, |
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rates for coverage under this chapter and the rate for an individual |
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risk insured under this chapter may not exceed 101 percent of the |
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rates for the preceding year. |
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SECTION 3. Subchapter H, Chapter 2210, Insurance Code, is |
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amended by adding Section 2210.364 to read as follows: |
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Sec. 2210.364. CERTAIN RATE INCREASES PROHIBITED. During |
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the three years following a declaration of disaster by the governor |
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under Chapter 418, Government Code, the association may not raise |
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the rates for policies issued in the area subject to the disaster |
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declaration. |
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SECTION 4. Subchapter L-1, Chapter 2210, Insurance Code, is |
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amended by adding Section 2210.5732 to read as follows: |
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Sec. 2210.5732. CERTAIN PREMIUM COLLECTIONS PROHIBITED. |
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The association may not collect a premium for an association policy |
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if a claim has been filed for a loss covered by the policy or a |
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preceding policy until the claim is paid or denied. |
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SECTION 5. Sections 2210.204(f) and 2210.5732, Insurance |
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Code, as added by this Act, apply only to a premium due under a |
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policy on or after the effective date of this Act. A premium due |
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under a policy filed before the effective date of this Act is |
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governed by the law applicable to the claim immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 6. This Act takes effect September 1, 2019. |