| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to emergency insurance premium relief programs for certain |
|
|
residential property insurance policies. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subtitle D, Title 10, Insurance Code, is amended |
|
|
by adding Chapter 2009 to read as follows: |
|
|
CHAPTER 2009. EMERGENCY RESIDENTIAL PROPERTY INSURANCE PREMIUM |
|
|
RELIEF PROGRAM |
|
|
SUBCHAPTER A. GENERAL PROVISIONS |
|
|
Sec. 2009.001. DEFINITIONS. In this chapter: |
|
|
(1) "Fund" means the emergency residential property |
|
|
insurance premium relief fund established under this chapter. |
|
|
(2) "Program" means the emergency residential |
|
|
property insurance premium relief program established under this |
|
|
chapter. |
|
|
(3) "Tax year" has the meaning assigned by Section |
|
|
1.04, Tax Code. |
|
|
Sec. 2009.002. APPLICABILITY OF CHAPTER. This chapter |
|
|
applies only to a residential property insurance policy that |
|
|
provides coverage for a property: |
|
|
(1) that is the policyholder's residence homestead |
|
|
under Section 11.13, Tax Code; and |
|
|
(2) for which the appraised value under Chapter 23, |
|
|
Tax Code, during the tax year beginning on January 1 of the year |
|
|
preceding the year in which the policyholder submits an application |
|
|
for a relief payment under this chapter is not more than $2 million. |
|
|
SUBCHAPTER B. ESTABLISHMENT AND OPERATION OF FUND |
|
|
Sec. 2009.051. ESTABLISHMENT OF FUND. (a) The emergency |
|
|
residential property insurance premium relief fund is created as a |
|
|
fund in the state treasury outside the general revenue fund. |
|
|
(b) The fund consists of: |
|
|
(1) money appropriated, credited, or transferred to |
|
|
the fund by the legislature; |
|
|
(2) gifts or grants contributed to the fund; and |
|
|
(3) interest earned on deposits and investments of the |
|
|
fund. |
|
|
(c) The fund may be used only to implement the program, |
|
|
including the costs of program administration and operation. |
|
|
Sec. 2009.052. EMERGENCY RESIDENTIAL PROPERTY INSURANCE |
|
|
PREMIUM RELIEF PROGRAM. The department shall establish and |
|
|
administer the emergency residential property insurance premium |
|
|
relief program for the public purpose of protecting housing of |
|
|
residents of this state. |
|
|
Sec. 2009.053. APPLICATION; ELIGIBILITY. (a) An eligible |
|
|
policyholder may apply to the department for a program payment in |
|
|
the form and manner prescribed by the commissioner. The |
|
|
application must include information necessary to demonstrate |
|
|
eligibility. |
|
|
(b) A policyholder is eligible for a program payment if: |
|
|
(1) the policyholder has experienced an economic |
|
|
hardship; |
|
|
(2) the policyholder owes at least one delinquent |
|
|
payment toward the premium for a policy to which this chapter |
|
|
applies; and |
|
|
(3) the fund has an amount of money necessary to |
|
|
satisfy all delinquent payments toward the premium for the |
|
|
policyholder's policy. |
|
|
(c) A policyholder is ineligible for a program payment if |
|
|
the policyholder has received another program payment. |
|
|
Sec. 2009.054. DETERMINATION; PAYMENT. (a) Not later than |
|
|
the 30th day after the date the department receives an application |
|
|
under Section 2009.053, the commissioner shall determine whether |
|
|
the policyholder is eligible for a program payment under this |
|
|
chapter. |
|
|
(b) If the commissioner determines that the policyholder is |
|
|
eligible for a program payment, the department shall issue the |
|
|
payment to the policyholder's insurer as soon as practicable in an |
|
|
amount necessary to satisfy all delinquent payments toward the |
|
|
policyholder's premium for the policy for which the payment was |
|
|
awarded. |
|
|
Sec. 2009.055. RESTRICTION ON USE OF PAYMENT. A recipient |
|
|
of a program payment may use the money only to pay the premium for |
|
|
the policy for which the payment was awarded. |
|
|
Sec. 2009.056. RULEMAKING. The commissioner shall adopt |
|
|
rules necessary to implement this chapter, including rules that |
|
|
establish: |
|
|
(1) a standardized application process, including the |
|
|
form to be used to apply for a program payment and the manner of |
|
|
submitting the form; |
|
|
(2) deadlines for: |
|
|
(A) applying for a program payment; and |
|
|
(B) disbursement of a program payment; and |
|
|
(3) procedures for: |
|
|
(A) monitoring the disbursement of a program |
|
|
payment to ensure compliance with Section 2009.055; and |
|
|
(B) the return of a program payment that was not |
|
|
used for a purpose described by Section 2009.055. |
|
|
SECTION 2. Chapter 2210, Insurance Code, is amended by |
|
|
adding Subchapter P to read as follows: |
|
|
SUBCHAPTER P. EMERGENCY ASSOCIATION PREMIUM RELIEF PROGRAM |
|
|
Sec. 2210.721. DEFINITIONS. In this subchapter: |
|
|
(1) "Fund" means the emergency association premium |
|
|
relief fund established under this subchapter. |
|
|
(2) "Program" means the emergency association premium |
|
|
relief program established under this subchapter. |
|
|
(3) "Tax year" has the meaning assigned by Section |
|
|
1.04, Tax Code. |
|
|
Sec. 2210.722. APPLICABILITY OF SUBCHAPTER. This |
|
|
subchapter applies only to an association policy that provides |
|
|
coverage for a property: |
|
|
(1) that is the policyholder's residence homestead |
|
|
under Section 11.13, Tax Code; and |
|
|
(2) for which the appraised value under Chapter 23, |
|
|
Tax Code, during the tax year beginning on January 1 of the year |
|
|
preceding the year in which the policyholder submits an application |
|
|
for a relief payment under this chapter is not more than $2 million. |
|
|
Sec. 2210.723. EMERGENCY ASSOCIATION PREMIUM RELIEF FUND. |
|
|
(a) The emergency association premium relief fund is created as a |
|
|
fund in the state treasury outside the general revenue fund. |
|
|
(b) The fund consists of: |
|
|
(1) money appropriated, credited, or transferred to |
|
|
the fund by the legislature; |
|
|
(2) gifts or grants contributed to the fund; and |
|
|
(3) interest earned on deposits and investments of the |
|
|
fund. |
|
|
(c) The fund may be used only to implement the program, |
|
|
including the costs of program administration and operation. |
|
|
Sec. 2210.724. EMERGENCY ASSOCIATION PREMIUM RELIEF |
|
|
PROGRAM. The department shall establish and administer the |
|
|
emergency association premium relief program for the public purpose |
|
|
of protecting the housing of residents of this state. |
|
|
Sec. 2210.725. APPLICATION; ELIGIBILITY. (a) An eligible |
|
|
policyholder may apply to the department to receive a relief |
|
|
payment under the program in the form and manner prescribed by the |
|
|
commissioner. The application must include information necessary |
|
|
to demonstrate eligibility. |
|
|
(b) A policyholder is eligible for a program payment if: |
|
|
(1) the policyholder has experienced an economic |
|
|
hardship; |
|
|
(2) the policyholder owes at least one delinquent |
|
|
payment toward the premium for an association policy; and |
|
|
(3) the fund has an amount of money sufficient to |
|
|
satisfy all delinquent payments toward the premium for the |
|
|
policyholder's association policy. |
|
|
(c) A policyholder is ineligible for a program payment if |
|
|
the policyholder has received another program payment. |
|
|
Sec. 2210.726. DETERMINATION; PAYMENT. (a) Not later than |
|
|
the 30th day after the date the department receives an application |
|
|
under Section 2210.725, the commissioner shall determine whether |
|
|
the policyholder is eligible for a program payment. |
|
|
(b) If the commissioner determines that a policyholder is |
|
|
eligible for a program payment, the department shall issue the |
|
|
payment to the association in an amount necessary to satisfy the |
|
|
premiums for the policyholder's association policy for which the |
|
|
payment was awarded. |
|
|
Sec. 2210.727. RESTRICTION ON USE OF PAYMENT. The |
|
|
association may use the money from a program payment only to pay the |
|
|
premium for the association policy for which the payment was |
|
|
awarded. |
|
|
Sec. 2210.728. RULEMAKING. The commissioner shall adopt |
|
|
rules necessary to implement this subchapter, including rules that |
|
|
establish: |
|
|
(1) a standardized application process, including the |
|
|
form to be used to apply for a program payment and the manner of |
|
|
submitting the form; |
|
|
(2) deadlines for: |
|
|
(A) applying for a program payment; and |
|
|
(B) disbursement of a program payment; and |
|
|
(3) procedures for: |
|
|
(A) monitoring the disbursement of a program |
|
|
payment to ensure compliance with Section 2210.727; and |
|
|
(B) the return of a program payment that was not |
|
|
used for a purpose described by Section 2210.727. |
|
|
SECTION 3. This Act takes effect September 1, 2025. |