88R13086 CJD-D
 
  By: Thompson of Brazoria H.B. No. 3208
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the refund of premiums on the cancellation of Texas
  Windstorm Insurance Association policies by insureds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2210.204, Insurance Code, is amended by
  amending Subsection (d) and adding Subsections (d-1) and (d-2) to
  read as follows:
         (d)  If an insured requests cancellation of the insurance
  coverage, the association shall refund the unearned premium only if
  the cancellation was for one of the following reasons:
               (1)  the purchase of similar coverage in the voluntary
  market;
               (2)  sale of the insured property to an unrelated
  party;
               (3)  total loss of the insured property; or
               (4)  a determination by the association that the
  insured property is no longer insurable under the association's
  rules and procedures[, less any minimum retained premium set forth
  in the plan of operation, payable to the insured and the holder of
  an unpaid balance]. The property and casualty agent who received a
  commission as the result of the issuance of an association policy
  providing the canceled coverage shall refund the agent's commission
  on any unearned premium in the same manner.
         (d-1)  An insured must provide proof in the form and manner
  prescribed by the association of a cancellation reason described by
  Subsection (d)(1), (2), or (3) to be eligible for a refund under
  that subsection.
         (d-2)  If an insured requests cancellation for a reason other
  than a reason described by Subsection (d) or fails to provide proof
  under Subsection (d-1), the insured's premium is considered earned
  and is not refundable.
         SECTION 2.  The change in law made by this Act applies only
  to a Texas windstorm and hail insurance policy that is delivered,
  issued for delivery, or renewed by the Texas Windstorm Insurance
  Association on or after the effective date of this Act. A policy
  delivered, issued for delivery, or renewed before the effective
  date of this Act is governed by the law as it existed immediately
  before that date, and that law is continued in effect for that
  purpose.
         SECTION 3.  This Act takes effect September 1, 2023.