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A BILL TO BE ENTITLED
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AN ACT
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relating to the abolition of the Texas Windstorm Insurance |
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Association and coverage for windstorm by certain insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 10, Subtitle G, is amended by adding |
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Chapter 2210A, Insurance Code, to read as follows: |
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CHAPTER 2210A. TEXAS WINDSTORM INSURANCE |
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Sec. 2210A.001. WINDSTORM COVERAGE REQUIRED. (a) This |
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chapter applies to all property insurers authorized to engage in |
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the business of property and casualty insurance in this state. |
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(b) As a condition of the insurer's authority to engage in |
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the business of insurance in this state, each insurer, described by |
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Subsection (a), must include coverage for windstorm and hail in |
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each policy written for property located within: |
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(A) Aransas County; |
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(B) Brazoria County; |
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(C) Calhoun County; |
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(D) Cameron County; |
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(E) Chambers County; |
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(F) Galveston County; |
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(G) Jefferson County; |
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(H) Kenedy County; |
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(I) Kleberg County; |
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(J) Matagorda County; |
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(K) Nueces County; |
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(L) Refugio County; |
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(M) San Patricio County; or |
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(N) Willacy County. |
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(c) Coverage provided under Subsection (b) must be provided |
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at no additional cost to the insured. Costs incurred by insurers |
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under this section shall not be recouped through a premium |
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surcharge. |
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SECTION 2. Chapter 2210, Insurance Code, is repealed. |
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SECTION 3. (a) The Texas Windstorm Insurance Association |
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is abolished but continues in existence until September 1, 2024, |
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for purpose of satisfying or transferring obligations according to |
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Subsection (b). |
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(b) The Texas Windstorm Insurance Association shall, no |
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later than September 1, 2024, liquidate all assets and utilize the |
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funds to satisfy obligations. |
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(c) Any obligations not satisfied by Subsection (b) shall be |
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paid from pro rata member assessments. The proportion of each |
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member's assessment shall be determined in the manner used to |
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determine each insurer's participation in the association for the |
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year under Section 2210.052, Insurance Code, as that section |
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existed before the effective date of this Act. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect on September 1, 2023. |