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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of installment premium payment plans on Texas |
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Windstorm Insurance Association policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.2032, Insurance Code, is amended to |
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add Section 2210.2032(c) to read as follows: |
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Sec. 2210.2032. PREMIUM PAYMENT METHODS. (a) The |
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association shall accept payment of premium by credit card. The |
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association may impose a fee on a policyholder for the use of a |
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credit card to pay premium. The fee may not exceed the amount |
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necessary to recoup the cost incurred by the association in |
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connection with the policyholder's use of a credit card. |
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(b) The association shall provide to policyholders the |
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option to pay premium in installments. A policyholder that pays |
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premium in accordance with an installment payment plan established |
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by the association and remains current on the payments satisfies |
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the obligation for payment of premium under this chapter. |
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(c) Due to the availability of multiple installment payment |
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plans directly through the association at no additional cost to the |
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insured, the use of premium financing arrangements is prohibited. |
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SECTION 2. The changes in law made by this Act apply to |
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policies issued and renewed on or after January 1, 2026. |
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SECTION 3. This Act takes effect September 1, 2025. |