81R10752 PB-D
By: Weber H.B. No. 2135
A BILL TO BE ENTITLED
AN ACT
relating to assessment of a premium surcharge by the Texas
Windstorm Insurance Association for coverage of improvements to
certain commercial structures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 2210, Insurance Code, is
amended by adding Section 2210.258 to read as follows:
Sec. 2210.258. SURCHARGE FOR CERTAIN NONCOMPLIANT
CONSTRUCTION. (a) Notwithstanding any other provision of this
chapter, a person may obtain windstorm and hail insurance coverage
through the association as provided by this section for
improvements to a commercial structure and property located inside
the structure even though:
(1) the structure has not been inspected for
compliance with the plan of operation in accordance with Section
2210.251(a); and
(2) a certificate of compliance has not been issued on
the structure in accordance with Section 2210.251(f).
(b) An applicant for coverage from the association or a
policyholder of the association under Subsection (a) is subject to
a premium surcharge for insurance coverage obtained through the
association. The commissioner shall set the surcharge, after
notice and a hearing, in an amount not less than an amount equal to
10 percent of the premium that would be assessed if the structure
were in compliance.
(c) A premium surcharge collected under this section shall
be deposited in the catastrophe reserve trust fund under Subchapter
J.
(d) A premium surcharge under this section is a separate
charge in addition to the premiums collected and is not subject to
premium tax or commissions. Failure to pay the surcharge by a
policyholder constitutes failure to pay a premium for purposes of
policy cancellation.
(e) The commissioner shall adopt rules as necessary to
implement this section.
SECTION 2. This Act applies only to an insurance policy
delivered, issued for delivery, or renewed by the Texas Windstorm
Insurance Association on or after January 1, 2010. A policy
delivered, issued for delivery, or renewed before January 1, 2010,
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2009.