| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the board of directors of the Texas Windstorm Insurance |
|
|
Association. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Sections 2210.102(a), (c), (c-1), (f), and (g), |
|
|
Insurance Code, are amended to read as follows: |
|
|
(a) The board of directors is composed of 11 [nine] members |
|
|
appointed by the governor [commissioner] in accordance with this |
|
|
section. |
|
|
(c) Five [Three] members must, as of the date of the |
|
|
appointment, reside in the first tier coastal counties. Each of the |
|
|
following regions must be represented by a member residing in the |
|
|
region and appointed under this subsection: |
|
|
(1) the region consisting of Cameron, Kenedy, Kleberg, |
|
|
and Willacy Counties; |
|
|
(2) the region consisting of Aransas, Calhoun, Nueces, |
|
|
Refugio, and San Patricio Counties; and |
|
|
(3) the region consisting of Brazoria, Chambers, |
|
|
Galveston, Jefferson, and Matagorda Counties and any part of Harris |
|
|
County designated as a catastrophe area under Section 2210.005. |
|
|
(c-1) One of the members appointed under Subsection (c) must |
|
|
be a property and casualty agent who is licensed under this code and |
|
|
is not a captive agent. Other members appointed under that |
|
|
subsection: |
|
|
(1) must be association policyholders nominated by the |
|
|
office of public insurance counsel; and |
|
|
(2) may not be property and casualty agents. |
|
|
(f) Insurers who are members of the association shall |
|
|
nominate, from among those members, persons to fill any vacancy in |
|
|
the three board of director seats reserved for representatives of |
|
|
the insurance industry. The board of directors shall solicit |
|
|
nominations from the members and submit the nominations to the |
|
|
governor [commissioner]. The nominee slate submitted to the |
|
|
governor [commissioner] under this subsection must include at least |
|
|
three more names than the number of vacancies. The governor |
|
|
[commissioner] may appoint replacement insurance industry |
|
|
representatives from the nominee slate. |
|
|
(g) Members appointed to the board of directors under |
|
|
Subsections (c) and (d), other than the property and casualty agent |
|
|
[member] appointed under Subsection (c-1), must represent the |
|
|
general public in the regions described by those subsections. A |
|
|
person may not be appointed to represent the general public under |
|
|
Subsection (c) or (d) if the person or the person's spouse: |
|
|
(1) is employed by or participates in the management |
|
|
of a business entity or other organization: |
|
|
(A) operating in the property and casualty |
|
|
insurance industry in this state; |
|
|
(B) receiving money from the association, other |
|
|
than insurance claim payments; or |
|
|
(C) receiving money from association |
|
|
policyholders with respect to the policyholders' claims; |
|
|
(2) owns or controls, directly or indirectly, more |
|
|
than a 10 percent interest in a business entity or other |
|
|
organization: |
|
|
(A) operating in the property and casualty |
|
|
insurance industry in this state; |
|
|
(B) receiving money from the association, other |
|
|
than insurance claim payments; or |
|
|
(C) receiving money from association |
|
|
policyholders with respect to the policyholders' claims; or |
|
|
(3) uses or receives a substantial amount of tangible |
|
|
goods, services, or money from the association, other than: |
|
|
(A) insurance claim payments; or |
|
|
(B) compensation or reimbursement authorized by |
|
|
law for the board members' membership, attendance, or expenses. |
|
|
SECTION 2. Section 2210.103, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 2210.103. TERMS. (a) Members of the board of |
|
|
directors serve two-year [three-year staggered] terms[, with the |
|
|
terms of three members expiring on the third Tuesday of March of |
|
|
each year]. |
|
|
(b) A person may serve on the board of directors for not more |
|
|
than three consecutive full terms, not to exceed six [nine] years. |
|
|
(c) A member of the board of directors may be removed by the |
|
|
governor [commissioner] with cause stated in writing and posted on |
|
|
the association's website. The governor [commissioner] shall |
|
|
appoint a replacement in accordance with Section 2210.102 for a |
|
|
member who leaves or is removed from the board of directors. |
|
|
SECTION 3. (a) The board of directors of the Texas |
|
|
Windstorm Insurance Association established under Section |
|
|
2210.102, Insurance Code, as that section existed before amendment |
|
|
by this Act, is abolished effective December 1, 2023. |
|
|
(b) The governor shall appoint the members of the board of |
|
|
directors of the Texas Windstorm Insurance Association under |
|
|
Section 2210.102, Insurance Code, as amended by this Act, not later |
|
|
than December 1, 2023. |
|
|
(c) The term of a person who is serving as a member of the |
|
|
board of directors of the Texas Windstorm Insurance Association |
|
|
immediately before the abolition of that board under Subsection (a) |
|
|
of this section expires on December 1, 2023. Such a person is |
|
|
eligible for appointment by the governor to the new board of |
|
|
directors of the Texas Windstorm Insurance Association, subject to |
|
|
the requirements of Section 2210.102, Insurance Code, as amended by |
|
|
this Act. |
|
|
SECTION 4. This Act takes effect September 1, 2023. |