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A BILL TO BE ENTITLED
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AN ACT
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relating to the board of directors of the Texas Windstorm Insurance |
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Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2210.102(a), (c), (c-1), and (f), |
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Insurance Code, are amended to read as follows: |
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(a) The board of directors is composed of 11 [nine] members |
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appointed by the governor [commissioner] in accordance with this |
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section. |
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(c) Five [Three] members must, as of the date of the |
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appointment, reside in the first tier coastal counties. Each of the |
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following regions must be represented by a member residing in the |
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region and appointed under this subsection: |
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(1) the region consisting of Cameron, Kenedy, Kleberg, |
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and Willacy Counties; |
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(2) the region consisting of Aransas, Calhoun, Nueces, |
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Refugio, and San Patricio Counties; and |
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(3) the region consisting of Brazoria, Chambers, |
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Galveston, Jefferson, and Matagorda Counties and any part of Harris |
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County designated as a catastrophe area under Section 2210.005. |
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(c-1) One of the members appointed under Subsection (c) must |
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be a property and casualty agent who is licensed under this code and |
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is not a captive agent. Other members appointed under that |
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subsection: |
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(1) must be association policyholders nominated by the |
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office of public insurance counsel; and |
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(2) may not be property and casualty agents. |
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(f) Insurers who are members of the association shall |
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nominate, from among those members, persons to fill any vacancy in |
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the three board of director seats reserved for representatives of |
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the insurance industry. The board of directors shall solicit |
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nominations from the members and submit the nominations to the |
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governor [commissioner]. The nominee slate submitted to the |
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governor [commissioner] under this subsection must include at least |
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three more names than the number of vacancies. The governor |
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[commissioner] may appoint replacement insurance industry |
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representatives from the nominee slate. |
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SECTION 2. Section 2210.103, Insurance Code, is amended to |
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read as follows: |
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Sec. 2210.103. TERMS. (a) Members of the board of |
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directors serve two-year [three-year staggered] terms[, with the
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terms of three members expiring on the third Tuesday of March of
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each year]. |
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(b) A person may serve on the board of directors for not more |
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than three consecutive full terms, not to exceed six [nine] years. |
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(c) A member of the board of directors may be removed by the |
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governor [commissioner] with cause stated in writing and posted on |
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the association's website. The governor [commissioner] shall |
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appoint a replacement in accordance with Section 2210.102 for a |
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member who leaves or is removed from the board of directors. |
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SECTION 3. (a) The board of directors of the Texas |
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Windstorm Insurance Association established under Section |
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2210.102, Insurance Code, as that section existed before amendment |
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by this Act, is abolished effective December 1, 2019. |
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(b) The governor shall appoint the members of the board of |
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directors of the Texas Windstorm Insurance Association under |
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Section 2210.102, Insurance Code, as amended by this Act, not later |
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than December 1, 2019. |
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(c) The term of a person who is serving as a member of the |
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board of directors of the Texas Windstorm Insurance Association |
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immediately before the abolition of that board under Subsection (a) |
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of this section expires on December 1, 2019. Such a person is |
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eligible for appointment by the governor to the new board of |
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directors of the Texas Windstorm Insurance Association, subject to |
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the requirements of Section 2210.102, Insurance Code, as amended by |
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this Act. |
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SECTION 4. This Act takes effect September 1, 2019. |