BILL ANALYSIS

Senate Research Center	S.B. 2233
88R13482 MEW-F	By: LaMantia
	Business & Commerce
	4/6/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In January of 2020, the Texas Windstorm Insurance Association (TWIA) began implementing an automatic renewal process following S.B. 615 passed by the 86th Legislature. Both TWIA and insurance agents broadly agree that this model works effectively for residential property policies, since residential policies generally have few changes year-to-year. However, commercial properties are significantly more complex and dynamic, often requiring lengthy communication between the insured party and an insurance agent. Managing commercial policies through an automatic renewal process creates additional work for the insured party, TWIA, and insurance agents, leading to increased errors and resulting in agents having to update the policies following renewal.

S.B. 2233 makes it such that only residential property policies can automatically renew with TWIA, eliminating the option for the automatic renewal of commercial policies. This measure will improve efficiency at TWIA, and is supported by both TWIA and the Independent Insurance Agents of Texas.

As proposed, S.B. 2233 amends current law relating to automatic renewal of certain policies issued by 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 2210.2031(a), Insurance Code, as follows:

(a) Requires the Texas Windstorm Insurance Association to establish a process for automatic renewal of a residential property policy, rather than automatic renewal of a policy, in accordance with Section 2210.2031 (Automatic Renewal).

SECTION 2. Effective date: September 1, 2023.