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A BILL TO BE ENTITLED
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AN ACT
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relating to certain functions of the Texas Windstorm Insurance |
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Association and a study regarding a merger of the Texas Windstorm |
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Insurance Association and the Fair Access to Insurance Requirements |
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Plan; authorizing a penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.251(g), Insurance Code, is amended |
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to read as follows: |
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(g) A certificate of compliance issued by the department [or
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association] under Section 2210.2515 demonstrates compliance with |
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the applicable building code under the plan of operation. The |
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certificate is evidence of insurability of the structure by the |
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association. |
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SECTION 2. Section 2210.2515, Insurance Code, is amended by |
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amending Subsections (c) and (e) and adding Subsections (i) and (j) |
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to read as follows: |
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(c) A person may apply to the department [association] on a |
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form prescribed by the department for a certificate of compliance |
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for a completed improvement. Except as provided by Subsection (e), |
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the department [The association] shall issue a certificate of |
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compliance for a completed improvement if a professional engineer |
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licensed by the Texas Board of Professional Engineers inspects the |
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completed improvement in accordance with commissioner rule and |
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affirms the improvement complies [:
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[(1)
has designed the improvement, has affixed the
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engineer's seal on the design, and submits to the association on a
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form prescribed by the department an affirmation of compliance] |
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with the applicable building code under the plan of operation and, |
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if a design of the completed improvement affixed with the seal of a |
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licensed professional engineer was submitted, that the improvement |
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conforms to the design[; or
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[(2)
completes a sealed post-construction evaluation
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report that confirms compliance with the applicable building code
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under the plan of operation]. |
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(e) Except as otherwise provided by this subchapter, the |
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department may not issue a certificate of compliance under |
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Subsection (c) or (d) if within six months after the date of the |
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final inspection of the structure that is the subject of the |
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application, the department has not received: |
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(1) fully completed forms prescribed by the department |
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demonstrating that the improvement satisfies the requirements |
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under Subsection (c) or Subsection (d)(1) or (2), as applicable; |
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and |
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(2) payment in full of all inspection fees, including |
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fees for prior department inspections, owed to the department. |
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(i) The department may rescind a certificate of compliance |
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issued under this section if the department finds that the |
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certificate was improperly issued. |
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(j) If the department finds that a professional engineer has |
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failed to provide complete and accurate information in connection |
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with an application for a certificate of compliance under this |
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section, the department may submit a formal complaint to the Texas |
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Board of Professional Engineers recommending license revocation. |
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If the Texas Board of Professional Engineers finds that the |
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engineer provided complete and accurate information in connection |
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with the application for a certificate of compliance, the |
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department may not refuse to issue the certificate of compliance |
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solely on the basis of that engineer's conduct. |
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SECTION 3. Subchapter H, Chapter 2210, Insurance Code, is |
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amended by adding Section 2210.3511 to read as follows: |
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Sec. 2210.3511. PUBLIC ACCESS TO RATE ADEQUACY ANALYSIS. |
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(a) The association shall make the association's rate adequacy |
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analysis publicly available on its Internet website for at least 14 |
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days before the date the board of directors votes on the submission |
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of a proposed rate filing based on the analysis to the department. |
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The rate adequacy analysis must include: |
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(1) all user selected hurricane model input |
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assumptions; and |
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(2) output data: |
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(A) with the same content and in the same format |
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that is customarily provided to: |
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(i) the association by hurricane modelers; |
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and |
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(ii) the department by the association; and |
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(B) in a searchable electronic format that allows |
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for efficient analysis and is sufficiently detailed to allow the |
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historical experience in this state to be compared to results |
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produced by the model. |
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(b) The association shall accept public comment with |
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respect to the association's rate adequacy analysis at a public |
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meeting of the board of directors before the board of directors |
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votes on the submission of a proposed rate filing to the department. |
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SECTION 4. (a) The windstorm insurance legislative |
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oversight board established under Subchapter N, Chapter 2210, |
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Insurance Code, shall conduct a study to evaluate a merger of the |
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Texas Windstorm Insurance Association established under Chapter |
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2210, Insurance Code, and the Fair Access to Insurance Requirements |
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Plan established under Chapter 2211, Insurance Code. |
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(b) The evaluation must consider: |
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(1) the affordability and availability of windstorm |
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and hail insurance throughout this state and, in particular, in the |
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seacoast territory as defined by Section 2210.003, Insurance Code; |
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(2) the affordability and availability of residential |
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property insurance throughout this state and, in particular, in |
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underserved areas as defined by Section 2211.001, Insurance Code; |
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(3) the advisability of merging the Texas Windstorm |
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Insurance Association and the Fair Access to Insurance Requirements |
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Plan to provide windstorm and hail and residential property |
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insurance in this state; |
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(4) any efficiencies or inefficiencies from a merger |
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of the Texas Windstorm Insurance Association and the Fair Access to |
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Insurance Requirements Plan; |
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(5) the funding necessary to ensure that windstorm and |
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hail and residential property insurance are available after the |
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merger of the Texas Windstorm Insurance Association and the Fair |
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Access to Insurance Requirements Plan; and |
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(6) any other items the windstorm insurance |
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legislative oversight board determines are relevant to a merger of |
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the Texas Windstorm Insurance Association and the Fair Access to |
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Insurance Requirements Plan. |
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(c) Not later than January 1, 2021, the windstorm insurance |
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legislative oversight board shall submit to the governor, the |
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lieutenant governor, the speaker of the house of representatives, |
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and the Texas Department of Insurance a written report of the study |
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conducted under this section. The report must include the findings |
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and legislative recommendations of the board. |
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(d) This section expires January 1, 2022. |
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SECTION 5. Section 2210.2515(f), Insurance Code, is |
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repealed. |
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SECTION 6. (a) Section 2210.251(g), Insurance Code, as |
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amended by this Act, does not affect the status of a certificate of |
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compliance issued by the Texas Windstorm Insurance Association |
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before January 1, 2019, or after January 1, 2019, in response to an |
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application made before that date for purposes of establishing |
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evidence of insurability. |
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(b) Section 2210.2515, Insurance Code, as amended by this |
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Act, applies only to an application for a certificate of compliance |
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made on or after January 1, 2020. An application for a certificate |
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of compliance made before January 1, 2020, is governed by the law as |
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it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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(c) Section 2210.3511, Insurance Code, as added by this Act, |
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applies only to a rate adequacy analysis made in relation to a rate |
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filing made on or after the effective date of this Act. |
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SECTION 7. This Act takes effect September 1, 2019. |